PRESENTATION 2014

Establishment: 28 May 1918 Independence: 18 October 1991 Area: 86.6 thousand km 2 Population: Official Language: Azerbaijani Government: Presidential Republic Membership in: UN (Non-permanent member of UN Security Council for ), Council of Europe, OSCE, Non-Aligned Movement, OIC Highlights: 1st democratic republic in the Islamic world 1st Opera in the Islamic world Women voting right in 1918 (while in Italy ; Switzerland ; France – 1944). ABOUT AZERBAIJAN brief

Total: Per capita: Growth rate: 73.6 bln USD USD 5.5 % Total: Share in total GDP: Growth rate: Non-oil GDP / bln USD 56.6 % 10 % ABOUT AZERBAIJAN stable economy 2013 GDP / 2013 Non-oil 56.6% Oil 43.4%

Investment / ABOUT AZERBAIJAN stable economy 2013 Total: Domestic: Foreign: 28 bln USD 17.5 bln USD 10.5 bln USD Inflation: 2.4 % ; Strategic currency reserves: 50 bln USD ; Budget balance: +4.5 % of GDP ; Average monthly wage: 559 USD ; Unemployment: 5 % ;

34.6 bln USD 26.2 bln USD 8.4 bln USD ABOUT AZERBAIJAN stable economy 2013 Trade / 2013 Trade: Export: Import: Inflation: 2.4 % ; Strategic currency reserves: 50 bln USD ; Budget balance: +4.5 % of GDP ; Average monthly wage: 559 USD ; Unemployment: 5 % ;

ABOUT AZERBAIJAN competitive economy Global Competitiveness Report İtaly Serbia Georgia Kazakhstan Bulgaria Turkey Azerbaijan Romania Czech Republic Russia 70th among 189 countries In Doing Business Turkey Barbados Azerbaijan Lithuania Malta Brazil Kazakhstan Russia İran Armenia Georgia st among CIS countries (5 times running) Macroeconomic environment – 18 th ; Government budget balance – 5 th ; General government debt – 12 th ; Labour market efficiency – 26 th ; Capacity for innovation – 39 th ; Technological readiness – 61 st ; Registering property – 9 th ; Starting a business– 18 th ; Enforcing contracts – 25 th ; Getting credit – 53 rd WB Doing Business Report 2014

Sovereign Debt Ratings ABOUT AZERBAIJAN competitive economy

On November 22-nd, 1949 – By the decision of the Board of the Presidium of the Supreme Soviet of Azerbaijan Sumgait was given a status of city; Area – 83km 2 ; Population – 358,000; During the USSR up to the end of 1980-s more than 40% of petrochemicals were produced in Sumgait. ABOUT SUMGAIT brief The existing plants: “Azerikimya” Production Union; Carton Factory; Sumgait Technologies Park; “Azguntex” Plant; Sumgait Chemical Industrial Park (SCIP) Carbamide Plant (in 2016) SOCAR Polymer (in 2016)

ABOUT SCIP facts & figures

Development of the country’s industrial production competitiveness by the means of innovative and high technology; Promote and support entrepreneurship; Ensure stable development of non-oil sector; Increase of industrial employment of the population; Offer foreign investors a modern approach to greenfield industrial development. ABOUT SCIP the purpose of the foundation of SCIP

KEY BENEFITS FOR INVESTORS favorable geographical location TURKEY IRAN Trabzon KAZAKHSTAN TURKMENISTAN BLACK SEA Tbilisi Sumgait Astrakhan RUSSIA GEORGIA AZERBAIJAN CASPIANSEA UZBEKISTAN Poti Aktau Turkmenbashi Bender-Abbas To Europe trough Georgia Mediterranean Sea To China through Kazakhstan Kars Ceyhan Armenia Natural bridge between Europe and Central Asia; easy access to Asian, Gulf, CIS and European markets; Baku-Tbilisi-Kars railway; an access to Baku – Rostov international transport highway and close proximity to harbour; an airport in 35 km away from SCIP

KEY BENEFITS FOR INVESTORS infrastructure Intended place for natural gas distribution station Intended place for potable water lines Main entrance Vocational school Technical entrance Intended place for gas distribution station Auto park entrance Workshops Warehouses Logistic center Railways Rain water lines Potable water lines Industrial wastewater lines Domestic wastewater lines Underground gallery

KEY BENEFITS FOR INVESTORS social zone Checkpoint Administrative building / Business incubators Administrative building /Boutique Hotel / office space Checkpoint Vocational school Square Showroom and conference centre Accommodation Dormitory Kindergarten Laboratory Recreation and sport area

KEY BENEFITS FOR INVESTORS raw materials On-Site raw materials In the nearest future Azerbaijan will have abundance feedstock for the production of chemical outputs. Thus, Azerkimya produces polymers from oil and gas and SOCAR is building new oil refinery complex in Alat.

KEY BENEFITS FOR INVESTORS raw materials Annual production capacity 570kt 550kt 100kt 60kt OGPC project – It is planned to construct oil-refining and gas-refining plants with a capacity of 10 mln. tonnes and 10 bln. m 3 annually respectively. The project also includes petrochemical production aimed at creating about 2mln. tonnes of basic polymers annually. Guaranteed Feedstock

KEY BENEFITS FOR INVESTORS research & development, trainings Vocational school on site specialized in the field of chemistry, mechatronics and construction; A specific laboratory on site supplied with a modern equipment; Skilled scientific personal available, SCIP offers full range of analytical services, laboratories, strong R&D network, on-site tests; 7 different workshops will serve for R&D and students studying; Sumqayit is a traditional chemical city, there are a lot of universities specialized in the field of chemistry. “Gafgaz” University; Sumgayit State University; Oil-Chemistry proccesses Institute on the name of academician Y.H.Mammadaliyev; Institute of chemical problems on the name of academician M.F.Naghiyev; Chemical impurities Institute on the name of academician A.Guluyev; The training and learning center of SOCAR in Sumgayit city.

KEY BENEFITS FOR INVESTORS investor support services Information supply Handling investment inquiries; Sectoral investment opportunities; Investment projects. Organizational support Visa facilitation, accommodation, booking and transportation; Site visits; Meetings with local authorities and private institutions. Support in getting established One-stop-shop; Support in receipt of technical conditions, permits, licenses; Work permits; Consultings; Environmental monitoring; Trainings.

KEY BENEFITS FOR INVESTORS incentives and government support 7 years SCIP’s residents are exempted for 7 years from taxes below: Corporate income tax; Property tax; Land tax; VAT of imported equipments. The expansion of incentives portfolio is under consideration. 0%

KEY BENEFITS FOR INVESTORS investment priorities PACKAGING INDUSTRY Growing world demand and the growth potential of Asian markets. BUILDING & CONSTRUCTION INDUSTRY Growing demand based on the construction boom and increased demand of construction materials in emerging markets.

KEY BENEFITS FOR INVESTORS investment priorities AUTOMOTIVE INDUSTRY High performance and safety standards increase the importance of plastic usage in automotive industry. ELECTRICAL AND ELECTRONICS INDUSTRY Increasing demand from telecommunication sector in the upcoming years.

KEY BENEFITS FOR INVESTORS investment priorities AGRICULTURAL INDUSTRY Great investment potential in the emerging markets. BOPP Long term success and investment in such business will bring very high income and investment returns.

KEY BENEFITS FOR INVESTORS investment priorities CONSUMER CHEMISTRY Daily consumer chemistry has ideal investment ground in emerging markets with growing demand. MEDICAL CHEMISTRY Investment in medical chemistry in emerging markets with growing demand will bring high investment returns.

KEY BENEFITS FOR INVESTORS investment priorities IMPORTS, $US thousands Plastic and articles thereof128,782179,465292,259360,984 Pharmaceuticals products142,177152,132243,031241,735 Miscellaneous chemical products54, ,165111,730 Soap, washing preparations58,32469, ,058 Rubber and articles thereof40, ,279 Inorganic chemicals; inorganic compounds of precious metals29,64128,67936,61654,308 Essential oils, perfumery, cosmetic and toilet preparations35,22243,77946,45952,181 Fertilizers23,80820,04639,12248,133 Organic chemicals30,03931,39833,40832,593 Tanning and dyeing extracts, paints and varnishes20,87316,22120,35727,845 Explosives; pyrotechnic products; matches4,4952,5186,1235,933 Albuminoidal substances; glues; enzymes2,2272,4023,6033,757 Photographic and cinematographic goods1,3991,0772,8122,234 TOTAL IMPORT OF CHEMICAL GOODS572,047663,345983,9351,089,770 Growth rate 16%48%11% Source: the State Statistical Committee of the Republic of Azerbaijan Imported chemical products into Azerbaijan

CONTACTS ”Sumgait Chemical Industrial Park” LLC Adress: Khatai district, Khojali avenue Tel: Fax: Website: