Brno September 30, 2014

Azerbaijan

Macroeconomic Indicators 2013 GDP – 73 bln. GDP Growth – 5.8% (2013), 10 % average in Non-oil Growth – 10 % GDP per capita – 7,495 USD Inflation – 2.4 % Investment – 28 bln., FDI – 10 bln. Foreign currency reserves – $50 bln. Unemployment – 5.2 % Poverty – 5.3 %

GDP

Diversification 51 % of non-oil GDP ITC (2 nd recipient of FDI, University, First Sattelite) Transportation (TRACECA, TASIM, Baku- Tbilisi-Kars railroad, North-South) Agriculture Tourism

Economic Achievements UNCTAD quoted Azerbaijan as NO 1 globally as per the FDI Inflow Performance Index 2007 – UN Public Service Award 2008 – World Bank Ranked Azerbaijan Top Reformer in Doing Business 2010 – World Economic Forum ranked Azerbaijan as Leading ICT use and Network Readiness Index among Eurasian countries 2011 – World Bank commended Azerbaijan’s poverty reduction strategy (for 10 years from 49 % to 12% (national estimation – 7%)) Global Competitiveness Report ranked Azerbaijan 39 th in the world

Existing Pipelines Caspian Sea Turkey Iran Iraq Syria Russia Georgia Baku Ceyhan Erzurum Kazakhstan Black Sea Tbilisi Med. Sea Azerbaijan Turkmenistan ACG Oil Production & Development Alov Exploration Inam Exploration Shah Deniz Gas Development Sangachal Terminal South Caucasus Pipeline Gas WREP Pipeline BTC Pipeline Oil NREP Pipeline Supsa Novorossiysk Stage 1 Stage 2 Azeri DWG Chirag

Three pipeline projects: South Caucasus Pipeline (SCPX) – Azerbaijan, Georgia Trans Anatolian Pipeline (TANAP) – Turkey Trans Adriatic Pipeline (TAP) – Greece, Albania, Italy

10 reasons to invest in Azerbaijan 1. Political and economic stability - Foreign debt is only 7.5% of the GDP - 39 th Most competitive economy - 8 th Most stable macroeconomy 2. FDI friendly laws - Strong investor protection policy and legislation. - Guarantees for foreign investors against adverse changes in the legislation, nationalization, requisition, discrimination policy. - Compensation of damages and repatriation of profits ensured legislatively

10 reasons to invest in Azerbaijan 3. Favourable tax regime - Azerbaijan has third easiest taxpaying procedures among CIS countries - Tax holidays (except land tax) in agriculture - Tax incentives in industrial and hi-tech parks 4. Skilled labour force - Around 30 thousand students graduate annually - State Programme on Education of Azerbaijani Youth Abroad in The number of graduates will reach 5000 by 2015 (200 annually in Canada) - A large R&D center, 28 research institutes, 52 universities and 108 colleges

10 reasons to invest in Azerbaijan 5. Abundant resources - Besides oil and gas, Ferrous and nonferrous, rare and fine metals, construction materials - 9 climate zones 6. Favourable location - Logistic hub and easy access to market in CIS, Central Asia and Middle East 7. Developing infrastructure - 5 international airports, largest port on Caspian Sea, international transportation routes

10 reasons to invest in Azerbaijan 8. State support - NO restrictions to foreign investments 9. Reformist environment - Top reformer among post-Soviet countries 10. Liberal trade regime - Trade relations with over 155 countries - NO EXPORT DUTIES and restrictions except for some strategic commodities

Azerbaijan-Czech $1.6 billion trade turnover Major exports: crude oil and oil products. Major imports: ferrous metal made rails, electrical appliances; home equipments. Potential fields for cooperation Heavy industry, chemical industry, Tourism, eco-tourism, Construction, Agrarian industry.

Booming Economy

New Opportunities

Q/A Contact Embassy of Azerbaijan Na Zátorce 783/17 Praha 6, Tel: (+420) Fax: (+420)