Constantly developing area

Constantly developing area

 

Azerbaijan Government realizes regular measures on improvement of business environment in country. After few years of economic decline, growth rate of Azerbaijan economy reached 1,4% in 2018. Along with oil production and oil export, growth is observed in agriculture (4,6%), tourism (7,6%) and transportation (7,8%) in the country.

Since the beginning of 2018 inflation has dropped significantly by 2.3% in Azerbaijan. This is due to government's reasonable monetary policy, fixed exchange rate and high oil prices.

Improvement of tax, migration and customs regulations are main components of the Government's reform agenda along with development of institutional framework, modernization of education system and strengthening social services.

New and efficient agencies

New and efficient agencies

 

New agencies such as the Small and Medium Business Development Agency (December 2017), the Food Safety Agency (February 2017), the State Vocational Education Agency under Ministry of Education (April 2016), and the Mortgage and Credit Guarantee Fund (December 2017) have been set up to increase effectiveness.

Azerbaijan as an international trade and logistics center

Azerbaijan as an international trade and logistics center

 

For this reason, simplification and adaptation of customs procedures in the case of barrier-free trade is of greater importance than ever before. In the background of the stable modernization and re-structuring of the customs authorities, the reforms in this direction have intensified. Digitalization of customs procedures is one of the main directions of customs reforms. The progress made in improving the electronic declaration system and submitting declaration in advance (before the goods arrived) is highly appreciated by companies operating in the country.

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Fair and transparent judicial system

Fair and transparent judicial system

 

Establishing a reliable legal system, ensuring transparency of court decisions and their timely and proper implementation on the background of the growing importance of foreign investment in the country's economy are more important than ever. From this point of view, the Decree of the President of the Republic of 3 April 2019 "On Deepening the Reforms in the Judicial-Legal System" was the beginning of a new stage in the development of a common business and investment environment in Azerbaijan. Particular emphasis should be given to the establishment of a specialized court on reformed tax and customs issues, the creation of a mediation organization, as well as the promotion of alternative mechanisms for implementation of court decisions. These measures, as well as improving the social welfare of judges and developing judicial infrastructure by increasing business credibility are contributing to the investment environment in the country.

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INNOLAND

INNOLAND

 

“INNOLAND” is an innovation center created with a goal to support the establishment of startup ecosystem and encourage innovation and development of private sector in Azerbaijan and outside of its border.

The Center for Incubation and Acceleration "INNOLAND" (www.innoland.az) began operatiтп on November 12, 2018.

“INNOLAND” is consisted of an incubation, an acceleration, a co-working space and IT Training and Education Center.

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Digital progress

Digital progress

 

The digital era's achievements create unprecedented opportunities and large-scale digital business models and innovations require competitiveness. Increased public investment in the ICT sector is encouraging. In the following years, financial resources will be mainly channeled to digital payment systems and extension of broadband internet networks.

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E-Government Development Center

E-Government Development Center

 

"E-GOV Development Center" public legal entity was established under the State Agency for Public Service and Social Innovations under the President of the Republic of Azerbaijan on 14 March, 2018.

The "E-GOV Development Center" as a coordinating body is in charge of enforcing supervision in the field of formulation, implementation, integration and effective management of public information resources and systems, as well as promoting public awareness of services among the population.

By using advanced modern information technologies, the Center ensures provision of information and e-services by the related state bodies for the all citizens residing in the territory of Azerbaijan, as well as legal entities & individuals, foreigners and stateless people.

Main operational areas of the Center includes electronic government services, services related to e-visa issuance and digital payment systems.

Multifaceted activities are also carried out by the Center aimed at developing e-services, including e-services in the directions of government-to-business (G2B) and business-to-government (B2G).

“E-GOV Development Center” ensures operations of eGov Portal, new eGOV model (myGov), ASAN Viza, ASAN Payment, ASAN Finance, e-Agro and development of other ongoing projects.

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Transparency in tax audits and dynamic tax administration

 

The national legislation provides measures and concessions to support private sector and entrepreneurship. The main objective is to ensure that taxpayers follow the law and reduce the scale of "shadow economy".

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Fundamental changes in the fields of labor and social protection

 

Reforms carried out within the framework of cooperation with local government bodies and international organizations were mainly focused on electronic employment services, as well as the expansion of services simplified and unlimited by the "one-stop-shop" system by the Ministry of Labor and Social Protection of Population, to increase the capacity, transparency and efficiency of the system.

Wide-ranging work is being carried out to reform in the labor market, improve the social system and increase pensions. Creating an e-social portal that simplifies accessibility of social services and increases transparency, as well as faster completion of the legal and institutional work of the DOST (Sustainable and Operative Social Security Agency) project than expected are highly appreciated. The agency which has a “one-stop-shop” system, was established on the basis of the Presidential Decree of August 9, 2018 and the administrative building was opened in Baku in May 2019. It is expected that the DOST centers will be commissioned in the regions by 2025.

An important role of SMEs

 

Small and Medium Enterprises SMEs play an important role in ensuring economic growth, innovation, job creation and social integration. Recently the progress achieved in establishing the necessary institutional and organizational structure to increase the role and competitiveness of SMEs is estimable.

All applications to a single center - ASAN

 

“ASAN service” centers were established on July 13, 2012 within the subordination of the State Agency for Public Service and Social Innovations under the President of the Republic of Azerbaijan. The purpose of creating "ASAN Service" is to form a new approach in ensuring the citizen satisfaction.

The “ASAN Service” center is a common space where the representatives of various government agencies rendering services together in accordance with "one-stop-shop" format. This format allows the citizens to reduce their personal expenses, eliminate time loss, and ensure transparency and personal comfort. In sum more than 320 different services are provided by 12 government agencies, as well as private companies and enterprises at the centers.

Currently there are 15 active "ASAN Service" centers. 5 of them located in the capital city Baku, others – in Sumgayit, Ganja, Sabirabad, Barda, Gabala, Masalli, Guba, Mingachevir, Imishli and Shaki. "ASAN Service" centers are opened from 9:00 to 19:00 from Mondays to Fridays, from 09:00 to 17:00 on Saturdays and Sundays without lunch breaks.

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Cost-effective and time-efficient transport infrastructure

 

In order to direct foreign investments to the non-oil sector from traditionally dominant oil and gas industry, the government has invested in rehabilitation and modernization of roads and railways, seaports and electric stations. Most of the investments are aimed at expanding the road and railway routes along the north-south and east-western transport corridors of the country to transform Azerbaijan into an attractive transit and trade center. Azerbaijan remains as a country with the most modern transportation system in the region. There are 6 international airports in the country, as well as a newly-opened maritime trade port.

It is planned to increase public expenditure on railway transport, tourism, digitalization and renewal of agricultural infrastructure since 2019. These events are expected to create a new economic impulse.

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Flexible procedures in the field of migration

 

Stable improvement of the country's migration policy rating has made Azerbaijan an attractive destination for foreigners and stateless persons. State Migration Service, realizing the state policy in the field of migration in accordance with the requirements of modern world takes appropriate steps, carries out extensive awareness-raising activities to provide the comfort and protection of the rights of foreigners visiting our country, as well as to comply with the requirements of the national legislation.

Optimizing e-services in order to facilitate procedures of issuance of work permits and to provide accurate information exchange with companies are highly appreciated by business entities operating here. Furthermore, a Hot Line, which allows directly to contact chief of the Service for operative resolution of disputes arising while obtaining work permits was established. Regularly business surveys are conducted, business forums are organized, proposals are received and measures are taken to implement them. In addition some services are electronized, a mobile app - MigAz was created for a more convenient application, a structured dialogue with the private sector has been established by State Migration Service.  

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