Azerbaijan Country Presentation

Basic information I Establishment: I Independence: I Official Language: I Political system: I Area: I Population: I Capital: I Autonomy: 28 May October 1991 Azerbaijanian Presidential Republic 86.6 ths. sq. km. 9.1 million Baku Nakhchivan Republic I Significant highlights: I First democratic republic in the Islamic world I 1st Opera in the Islamic world I Women voting right in 1918; Italy -1946; Switzerland ; France I Currency: Manat: 1 AZN = 1.27 USD I UN Security Council non-permanent member for

Location Azerbaijan is the country on the crossroads of Eurasia

Interesting facts I First Baku ‘oil boom’ I Nobel’s first Kerosene factory I 1846–first hand-dug oil wells I 50% of world oil production in XIX century I 80% of total Soviet oil production during World War II

Nagorno-Karabakh conflict I In 1989 – % of territories of the Republic of Azerbaijan were occupied by Armenia I The cease-fire has been in force since 1994 I Total refugees and IDPs – 1,010,000 I Economic losses of more than 60 bln US dollars

Macroeconomic figures 9.4 % GDP, bln USD GDP per capita ($) Investments ($) FDI ($) Inflation Unemployment rate Average monthly salary ($) External debt ($) Budget revenues ($) Budget expenses ($) Currency Reserve ($) , bln 4.4 bln 7.9 % 5.4% 460 4,6 bln 19,9bln 19,5 bln 40 bln Azerbaijan Republic 2011 Korean Republic trln 31, bln 190 bln 4 % 3.4% bln 267 bln 242 bln 306 bln

GDP growth  Average GDP growth in %, but last year 0,1 %  2 nd fastest growing economy among 179 countries for GDP per capita growth in

productivity GDP share in the region I GDP share in the South Caucasus (%)

 External debt in 2011 – 4.6 bln USD (7.3% of GDP)  Korea currency reserve-306 bln USD  Korea-(397 bln USD -33 % of GDP) 7.4 Strategic currency reserves

Turkey 15% Ukraine 8% Germany 9% China 8% France 6% USA 7% Russia 18% Foreign Trade (import) IIIIII More than 10 Free Trade Agreements 149 trade partners WTO negotiations process I Trade turnover I Import Other 42% 36.3 bln US dollars 9.7 bln US dollars ■ Machinery, equipment ■ Vehicles and spare parts ■ Foodstuffs ■ Non-ferrous metals and products ■ Pharmaceuticals ■ Wood and products ■ Other 2011

Italy 26% Russia 5% Israel 8% USA 12% France 9% Other 40% Ukraine 4% Foreign Trade (export) I Trade turnover I Export 36.3 bln US dollars 26.6 bln US dollars ■ Raw oil and petrochemicals ■ Fruit and vegetables ■ Plant and animal oil ■ Ferrous metals and products ■ Chemical industry products ■ Cotton ■ Aluminum and products ■ Alcoholic and non-alcoholic beverages ■ Tobacco and products ■ Other 2011

 Oil Sector-53%  Construction-7%  Agriculture-5%  Trade 8%  Transport 6%  ICT-2%  Other sector-19% GDP distribution by sector

 The same credit rating: Brazil, Mexico, India, Morocco,  Azerbaijan is better than Serbia, Romania, Hungary and Estonia. Country Ratings  Korea Credit Rating: A or A+  Maximum Credit Rating: USA, Australia, UK, Norway (AAA)

 Dutch Deasease  Unequality growth  World Economic Crisis Challenges to our economy

Development strategy Aim: Sustainable economic development  Diversification (increase non-oil sector)  Balanced and Stable Regional Development  Enhance national competitiveness while integrating to world economy  Ensure the durability of social policy Economic Strategy

ICT Tourism Light Industry Heavy Industry Industrial Parks Alternative Energy Transportation and Logistics Agriculture and Food Industry Chemical Industry Diversification

AZERISPACECost of project: 120 mln USD AzerSat-1 -first satellite is to be launched into orbit in July or August 2012 By Arianespace (France) will cover Europe and major Asian countries and Africa will have transmission for TV, radio broadcasting and the internet. ICT

Tourism Building infrastructure for tourism: Now 508 hotels over Azerbaijan

Tourism Organization of the international cultural and sporting events in 2012: Eurovision Song Contest Baku FIFA Women's U17 World Championship Baku International Jazz Festival

ALYAT SEA PORT AHALKALAKI KARS ISTANBUL Transport Capacity I Baku – Tbilisi – Kars railroad (The Iron Silkway)

 Sumgait Industrial Park  Balakhani eco-industrial Park  Ganja Aluminium Plant of DET AL Aluminium LLC  Baku Ship Yard Company 21 Industrialization

PRODUCTION FIELDS IN SUMGAIT CHEMICAL INDUSTRIAL PARK  Polietilena  Details of machine and mechanism  Polypropylene  Antifreeze  Synthetically rubber  Plastic pipes  Lacquer-paint production  Tar of heavy piroliz  Propylene-glycol  Bitumen production  Lubricating oil production 22 PRODUCTION FIELDS IN SUMGAIT CHEMICAL INDUSTRIAL PARK

BALAKHANI ECO-INDUSTRIALINDUSTRIAL PARK  Recycling  Producing green materials and Energy  Exchange of information and knowledge

BALANCED REGIONAL DEVELOPMENT  The State Program on the socio-economic development of regions in Azerbaijan Republic ( )  The State Program on the socio-economic development of regions in Azerbaijan Republic( )  The State Program on sustainable provision of population with foodstuffs in Azerbaijan Republic during

 82,5% share of private sector in GDP  73,9% of employment  82,0% of industrial product. Entrepreneurship development

26  Bakı Business-Educational Center  Telephone Information Center  Electron Trade Portal  National Confederation of Entrepreneurs (Employers) Organization of Azerbaijan  National Fund for Entrepreneurship Support  Azerbaijan Investment Company  Azerbaijan Export and Investment Promotion Foundation (AZPROMO) Mechanisms to support to entrepreneurship

Social Policy I State Program on Poverty Reduction and Sustainable Development of the Republic of Azerbaijan in Poverty reduction dynamics 49% 48% 45% 40% 29% 21% 16% 13% 11% 9% 7.6%

GDP GROWTH of NON-OIL SECTOR I

“Azerbaijan 2020: view to the future”  to double GDP.  to achieve 7% average annual growth in non-oil sector.  to increase share of non-oil sector in GPD up to 80% (in 2011 – 48.3%).  to increase of GPD per capita till USD.  to create knowledge-based economy. Azerbaijan 2020: view to the future President Mr. Ilham Aliyev determined:

 Over 40 agreements have been signed between Azerbaijan and Korea, including in the field of economic cooperation, particularly: Investment promotion and protection Avoidance of double taxation Agriculture Fuel and energy cooperation Communication and information technologies Transport Air transportation Rail roads Land cadastre Environmental protection Bilateral Agreements

Currently in Azerbaijan there are 18 companies with Korean investments operating in the fields of commerce, road construction, housing construction, architecture, services, etc. In million USD were invested by Korea in Azerbaijan. Companies

o 2011: Trade turnover: million USD (72.5% raise) Import: million USD (29.6% raise) Export: million USD (103.4% raise) o January – March, 2012: Trade turnover: million USD (63.30% raise) Import: million USD (68.30% raise) Export: 0.02 million USD (98.48% reduction) Trade Relations

 Major exports from Azerbaijan to Korea: Crude oil, copper ore and concentrates, wine, etc.  Major imports to Azerbaijan from Korea: Motor car, bulldozer, excavators, plastics, machines and equipment, apparatus and spare parts, petroleum, calculators, busses, ferrous metals, trucks, etc. Trade relations

 Currently 4 projects are implemented in Azerbaijan by KOICA: Project of Creation of Special Economic Zones and Industrial Parks ( , 1 million USD, beneficiary is Ministry of Economic Development) Project of Automation of Intellectual Property Rights in Azerbaijan ( , 4.2 million USD, beneficiary is State Committee for Standardization, Metrology and Patents) Project of Creation of Education Information System at Azerbaijan Technical University ( , 2 million USD, beneficiary is Azerbaijan Technical University) Project of General Settlement of Water Shortage on the Absheron peninsula ( , million USD, beneficiary is “Azersu” Public Corporation) Cooperation in Technical Assistance

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