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Economic Development in Azerbaijan

Hovsan development project


Developing start 2015 year
Developing stage At the moment are working on a comprehensive development project

The project HOVSAN is unique and has no analogues, not only in Azerbaijan, but also among other C.I.S countries. The complex are is very extensive and will promote the development and elimination of problems associated with urbanization of Baku city.

The general territory of a complex covers 330 hectares.

In the 1st phase we will have medium height apartment buildings on a site of 50 ha out of which:
• Local area – 6.36 ha including: kindergarten, school, nursery; sports facilities; shop, café and restaurants; mosque
• Classic Center – 8.95 ha including: administrative buildings (tax office, police, justice and etc.); high school; worship, religion center
• City Center – 8 ha including: mixed use buildings (services, residential, office buildings)
• Residential – 17.35 ha including: high rise residence
• Landscape – Lake – 10.7 ha, roads 5500 m
• 220 buildings with range from 3 to 9 floors each
• 4900 studio, two, and three room “turnkey” apartments of varying layouts.

The main advantages and attractiveness of the project
• Close to the airport and a quick connection to the center of Baku with the highway and rail link.
• Maximum gardening of the area, green areas along roads, artificial ponds serve as a good stay for residents.
• Investment returns will be of the first implementation periods
• Anchor of the project is going to be a great thematic park

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Green City - Current - AS Group Investment
 

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Azerbaijan and Kazakhstan agreed construction of Trans-Eurasian Information Super Highway (TASIM). The TASIM project is aimed at creation of transnational fiber-optic line from Frankfurt to Hong Kong.

BAKU, January 17 (Sputnik) — Azerbaijan and Kazakhstan have reached an agreement on Trans-Eurasian Information Super Highway (TASIM) construction, and the works may begin in 2015, Azerbaijani Minister of Communications and Information Technologies Ali Abbasov told journalists on Saturday.

“The signing of the contract with Kazakhstan is expected in the first half of 2015, and construction works may begin by the end of the year,” Abbasov said.

The TASIM project is aimed at creation of transnational fiber-optic line from Frankfurt to Hong Kong. The project will benefit the region by improving connectivity, and will eventually lead to economic development.
The main transit route will pass through China, Kazakhstan, Azerbaijan, Georgia, Turkey, and continue all the way to Germany. The alternative, northern route is expected to stretch through Russia, Ukraine and Poland.

Currently, the TASIM project involves Russia’s Rostelekom, Kazakhstan’s KazTransKom, Turkish TurkTelecom, Chinese China Telecom, and Azerbaijan represented by the Center for International Relations and Calculations of the Ministry of Communications and High Technologies.

Azerbaijan, Kazakhstan Reach Agreement on TASIM Underwater Construction / Sputnik International
 
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Tesla now in Azerbaijan

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Retail Development
Baku City Mall , soon to be one of the biggest malls in the world

The Shopping Mall project with a total area of 400 000 sq.m. and 7 000 public parking places, includes large areas of various entertainment, retail and services. It is intended to become the biggest retail centre in the region, making an important input into the development of tourism in the country.

An Olympic sized ice rink with panoramic views located in the mall has the ability to be converted to a concert hall for city events. Café and restaurants at all levels around the ice rink will offer unforgettable views to the waterfront boulevard, observation wheel and Baku bay.

The mall intends to become a covered crossing between the boulevard and the northern part of the site, by means of a new pedestrian bridge. Promenades designed within the Western and Eastern parts of the Waterfront will meet inside of the mall and create a gallery, open and day and night for residents and guests of the city.

The atmosphere at the crossing of these two galleries will make this area one of the most favorable place for family entertainment and leisure.

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Azerbaijan's first Presedent Abulfaz Elchibey expressed irredentist sentiments and promoted the idea of a ‘Greater Azerbaijan,’ which would unite Azerbaijan (the country) and Azerbaijan (the region in northwest Iran). It was Elchibey who instead of creating 'Greater Azerbaijan' made Iran an enemy and lost 20% of Azeri territory to Armenia.
Which is a good thing. Azerbaijanis are also Turk. And we the Turks do not like Iran. I foresee co-operation between Israel and Turks in general, against Iranian hegemony in the region.

But it will happen lots of time later.
 
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Turkish Truckers Eye Caspian Sea Routes to Avoid Delays in Iran

The use of ferry boats and Ro-Ro ships would cut excursion time significantly, the CEO of Turkey’s International Transporters Association (UND) Fatih Şener quoted as saying in report published in Hurriyet Daily News.

There are plans to carry nearly 25 thousand trucks a year over the Caspian Sea using ferryboats and Ro-Ro ships from the newly constructed Alat port in Azerbaijan to Turkmenistan’s Türkmenbaşı port.

The annual capacity will reach 25 to 30 thousand vehicles a year, when Azerbaijan’s ferryboats and Turkmenistan’s newly purchased Ro-Ro ships come into play.

Transit fees for trucks have recently become a sticking point between Turkey and its neighbor. Recently, Ankara increased transit fees for Iranian trucks when Tehran hiked its own rates for Turkish trucks. Iranian customs also started to delay Turkish trucks, which carry exports to Central Asia.

Turkish Truckers Eye Caspian Sea Routes to Avoid

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Turkish Truckers Eye Caspian Sea Routes to Avoid Delays in Iran

The use of ferry boats and Ro-Ro ships would cut excursion time significantly, the CEO of Turkey’s International Transporters Association (UND) Fatih Şener quoted as saying in report published in Hurriyet Daily News.

There are plans to carry nearly 25 thousand trucks a year over the Caspian Sea using ferryboats and Ro-Ro ships from the newly constructed Alat port in Azerbaijan to Turkmenistan’s Türkmenbaşı port.

The annual capacity will reach 25 to 30 thousand vehicles a year, when Azerbaijan’s ferryboats and Turkmenistan’s newly purchased Ro-Ro ships come into play.

Transit fees for trucks have recently become a sticking point between Turkey and its neighbor. Recently, Ankara increased transit fees for Iranian trucks when Tehran hiked its own rates for Turkish trucks. Iranian customs also started to delay Turkish trucks, which carry exports to Central Asia.

Turkish Truckers Eye Caspian Sea Routes to Avoid

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Makes sense, the route over Caspian sea to CA is shorter and operating ferrys is cheaper than taking a longer route over Iran which requires enormous transit fees from Turkish trucks anyway.
 
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Khazar Islands is planned to have world's next tallest tower , reaching the height of 1050m , higher than the currently
U/C Kingdom Tower. The price of it stands at 2 billion dollars , before anyone starts saying this is a waste of government money , the whole project is completely funded by investors and the government has no part in it.
As of now the first contract with Malaysian company has been signed for 100+ million dollars. As the tower will be built
on an artificial island , the construction will start after its completion.


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possible South Korean investors.


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Azerbaijan’s GDP, despite fall in world oil prices, soared by 4.4% in January

Baku, Fineko/abc.az. Falling world oil prices did not stop economic growth in Azerbaijan, rather on the contrary.

The State Statistics Committee of Azerbaijan informs that in January 2015, according to preliminary data, GDP grew by 4.4% and its volume reached AZN 3.6 bn. At that, the non-oil GDP rose by 5.5% and oil GDP soared by 3.1%.

For comparison, last year GDP (AZN 58.977 bn) increased by 2.8%. At that, non-oil GDP (AZN 35.968 bn) grew by 7% and oil GDP (AZN 23.009 bn) fell by 2.9%.

The paradox with the growth of the oil sector against the background of falling world prices for this raw material is only seeming: country’s domestic oil prices did not change, remaining initially much below their world level, and production itself grew up to a respectable, by local standards, level of 3 million tons a month.

Azerbaijan’s GDP, despite fall in world oil prices, soared by 4.4% in January -
ABC.AZ


SOFAZ assets jump

Azerbaijan’s state oil fund SOFAZ which is in charge of accumulating and managing the country's oil and gas revenues, announced about the increase in its assets.

The fund reported that its assets increased by 3.42 percent as of January 1, 2015, compared to $35.877 billion in early 2014 and exceeded $37.104.

SOFAZ revenues totaled 12.731 million manats while budget expenditures constituted 10.117, 2 billion manats.

Revenue of 12.343, 8 billion manats was received from the implementation of oil and gas agreements, including 12.319, 8 billion manats from the sale of profit oil and gas, 8.9 million manats as transit payments, 13.3 million manats as bonus payments. Revenues from payments per acre in the first half of 2014 amounted to 1.7 million manats, revenues from the sale of assets transferred by foreign investors stood at 0.1 million manats.

SOFAZ was established in 1999 with assets of $271 million.The main goals of SOFAZ include accumulation of resources and placement of the Fund's assets abroad in order to minimize the negative affects on economy, the prevention of 'Dutch disease' to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.

SOFAZ assets jump - AzerNews
 
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Cisco: Baku, next regional hub for innovation

Baku can become a regional center for innovation, including in the field of comprehensive Internet, said Jonathan Sparrow, Cisco vice president for Russia and CIS.

The American company Cisco is currently working with the Azerbaijan’s network of centers for simplified access to public services ASAN Xidmet. The company also supports a project of First European Games to be held in Baku this year.

“Azerbaijan pays great attention to innovative technologies and their introduction in order to facilitate the lives of its citizens. If Azerbaijan will focus on the introduction of modern technologies, the country has a great chance to continue rapid development not only thanks to natural resources,” Sparrow said.

He noted the fact that Barcelona has recently received the award of the European Union, as the capital of innovations, and said Baku may receive the award in its region as well.

“If to keep in mind that the goal of the city is to provide citizens with the best conditions for life and if to set correct, far-reaching goals, not just build good infrastructure and create business models, then it is quite achievable,” he said.

Sparrow said that they are impressed that an actively developing innovations center is operating in ASAN.

“The concept of smart and safe city provides a platform for creation of fresh business models, technologies, applications, and potential in this area may be no less than in the global market of mobile applications,” he said.

“Within this concept, products that can be created in Baku today may enter into the markets of India, the U.S., and the countries of Europe in a certain period of time. Export of such technologies abroad is quite easy, and it quickly scales,” Sparrow emphasized.

Cisco Systems has introduced a new platform of national broadband Internet infrastructure in Azerbaijan, the Azerbaijani Communications and High Technologies Ministry said.

Cisco Systems is preparing to participate in the project development of broadband Internet in Azerbaijan.

The prospects of cooperation between the Ministry and the company were discussed at a meeting of Ali Abbasov, Communications and High Technologies Minister, with Jonathan Sparrow in Baku.

The sides also discussed new areas of cooperation and development of the existing capacity.

Sparrow expressed readiness to support Azerbaijan in its main goal - to transform the country into the center of information services in the region.

The vice-president said Cisco is interested in participating in the development of broadband Internet in Azerbaijan and ready to offer the necessary technological solutions for the project.

The project on the development of broadband Internet in Azerbaijan is planned to start in 2015 and to be implemented in the next three years.

The ultimate goals of the project are to provide the whole country, including remote rural areas, with high-speed internet in the range of 10-100 megabits/second and to increase the share of broadband internet users to 85 percent. This will allow Azerbaijan to reach the level of other developed countries by 2017.

Currently, about 70 percent of the populations use the Internet, and the broadband Internet penetration among the population stands at 50 percent.

The total cost of the project is estimated at more than 450 million manats, and it will run from 2014 to 2016.

Under the project, all the settlements of Azerbaijan are expected to be provided with high-speed access to the Internet by 2017.

The State Oil Fund of Azerbaijan is set to allocate100 million manats to the project this year.

Earlier, the European Bank for Reconstruction and Development approved the allocation of about 27 million euros loan for the project of broadband internet development. Of the total loan amount, 13.7 million euros are intended for Production Association Aztelekom, and the rest for Baku Telephone Communications PA. The interest rate is six percent per annum.

The project, according to the Ministry, is cost effective and will pay off in the fourth year after the start of its implementation.

Azerbaijan is taking the 64th place in the world in terms of ICT development, according to the International Telecommunication Union.

The country is adopting measures to develop the non-oil segment of its economy. In this context, ICT is one of the prominent sectors, and the income of Azerbaijan's information technology sector has doubled in the past five years.

Cisco: Baku, next regional hub for innovation - AzerNews
 
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Manat dropped against Euro and Dollar...
Azerbaycan'da devalüasyon - Hürriyet EKONOMİ

Seems like dropping oil pries effected our brothers..i think Azerbaijan needs to diverse it's economy.
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I don't know if that is infact true

USD to AZN Exchange Rate - Bloomberg

I don't believe that in matter of hours the currency would drop by a massive 34%
but if it is true , the falling oil prices and massive drop in currency
will have a massive impact on economy and on regular lives of citizens
 
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I don't know if that is infact true

USD to AZN Exchange Rate - Bloomberg

I don't believe that in matter of hours the currency would drop by a massive 34%
but if it is true , the falling oil prices and massive drop in currency
will have a massive impact on economy and on regular lives of citizens
As far as we know here in Turkey, there have been news implications that Azerbaijan 'on the purpose' would devalue its currency a bit down to place itself in a more economically balanced position. We heard that Azerbaijani officials stated that this will be in the favor of the nation and economy.
 
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I don't know if that is infact true

USD to AZN Exchange Rate - Bloomberg

I don't believe that in matter of hours the currency would drop by a massive 34%
but if it is true , the falling oil prices and massive drop in currency
will have a massive impact on economy and on regular lives of citizens

This is all over the headlines. And the statement came through Azerbaijan Central Bank.
 
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