Economic news bulletin No 28, October 2018 competitiveness rating published in the report.

"The calculation was carried out on the basis of a new method, significantly different from the previously used method. The rating is compiled in 12 positions. The first position "Institutions" is very Economic News Bulletin important from the point of view of Embassy of the Republic of intellectual property. Azerbaijan to the scored 4.8 points in this position and Swiss Confederation and took 36th place (it took 37th place last Principality of Liechtenstein year.) In terms of the “Protection of Kramburgstrasse 10, 3006 Bern Intellectual Property” indicator, tel: +41 31 350 50 44 Azerbaijan ranks first among the CIS fax: +41 31 350 50 41 countries, and, outranking Armenia by e-mail: [email protected] 30 points, and by 54 points, is the undisputed leader among the Macroeconomics countries of the South Caucasus," the

agency said. It is also noted that Azerbaijan ranks 1st among CIS is on the 85th place, - countries as per “Intellectual on the 114th place in terms of this Property Protection” indicator. The agency stated that the "Innovation" position is related to Azerbaijan ranks first among the CIS intellectual property to some extent. countries by the "Azerbaijan holds 71st place in the "Protection of "Innovation" position, being ahead of Intellectual Georgia and Kazakhstan, which are at Property" indicator the 85th and 87th places, respectively. in the report of the The Russian Federation (36th place) World Economic Forum, the and Ukraine (58th place) the leaders commentary of the Intellectual here," the agency stated. Property Agency of Azerbaijan related to the Global Competitiveness Report Confederation of Entrepreneurs: (GCI-2018) published by the World Over 15 years $250B invested in Economic Forum for 2018, reads. It is Azerbaijani economy noted that Azerbaijan hold 69th place in accordance with the country's Over the past 15 years, $250 billion has been invested in Azerbaijani

1

Economic news bulletin No 28, October 2018 economy, half of which accounts for measures taken to improve the foreign investment, regulatory framework of vocational the President of the education in 2018 in Azerbaijan for National the first time a law on vocational Confederation of education was adopted," Gurbanov Entrepreneurs said. (Employers') Organizations of the Republic of Azerbaijan Mammad "In particular, the new law provides Musayev said at the conference for the provision of financial, legal "Cooperation of entrepreneur- and other benefits in order to increase professional education". the interest of employers in attracting graduates of vocational schools. I "Investment means attraction of new would also note that memorandums of technologies, creation of new understanding have been signed enterprises. And this, in turn, presents between a number of educational new requirements for education, institutions, local and foreign including professional education. On companies," the deputy minister this matter, we work closely with the added. Ministry of Education and individual universities, educational institutions. Industry A lot of work has been done within the framework of the signed Azerbaijan signs Belt and Road agreements, which gives positive Energy Partnership Declaration results," Musayev said. Azerbaijan has become a signatory to In his turn, the Deputy Minister of the Belt and Education of Azerbaijan Firudin Road Energy Gurbanov, who made a speech at the Partnership event, noting that Azerbaijan Declaration as continues to optimize existing and Minister of create new vocational schools, which Energy Parviz Shahbazov attended the will help improve human resources. Belt and Road Energy Ministerial Conference in China. Hosted by the "As a result of the optimization, in Chinese National Energy accordance with the relevant decisions Administration, the conference of the Cabinet of Ministers, on the brought together ministers of energy basis of 34 vocational schools located administrations and representatives in , Ganja and Gabala district 14 from relevant international specialized vocational education organizations. The major highlight of centers have been created. As part of

2

Economic news bulletin No 28, October 2018 the conference was Building the "Belt expressed their support for building of and Road" Energy Partnership. Belt and Road Energy Partnership. One Belt, One Road initiative was put Addressing the conference, forward by Chinese President Xi Shahbazov said that through Jinping. restoration of the historical Silk Road, China and Azerbaijan are bringing Azerbaijan expressed its support to the continents and civilizations closer to initiative when the country signed the each other, building a new model of Memorandum of Understanding on cooperation of the Belt and Road Joint Encouragement of the Initiative in a large geography, which Establishment of “Silk Way Economic covers South-East Asia, Africa and Belt” during President Ilham Aliyev’s Eastern Europe. state visit to China in 2015.

He noted that the successful transport Azerbaijan expects "energy boost" projects such as Baku--Kars, due to new renewable sources South-North, Alat International Sea Trade Port implemented by In 2018, electricity produced from Azerbaijan have considerably renewable sources contributed to the One Road, One Belt will exceed 10 initiative. percent of the total energy generated in The conference, which was hosted for Azerbaijan, the the first time, featured discussions on Deputy Chairman a wide range of topics, including of The State Agency on Alternative encouragement of investments in the and Renewable Energy Sources of the field of energy and unimpeded energy Republic of Azerbaijan Jamil Malikov trade. said.

At the end of the conference, a Joint It is forecasted that this figure will Ministerial Declaration on Building reach 12 percent by 2020, and by the Belt and Road Energy Partnership 2030 it should reach 20 percent, was signed. The document Malikov said. emphasized that the Belt and Road Initiative will provide new "This requires investment, appropriate opportunities for the international regulatory framework and an optimal cooperation as an open and inclusive tariff policy. In 2017, the volume of platform. By signing the Declaration, electricity produced from renewable the signatory countries have also sources amounted to 9.8 percent of the total energy production. In alternative

3

Economic news bulletin No 28, October 2018 energy, the energy losses are very 6,000 tons of tobacco in 2018, of small, since production facilities are which 3,000 tons will account for located in close proximity to the end Azertutun. Lands sown under tobacco user," Malikov said. reached 2,387 hectares this year. Tobacco is stored in the storage point Malikov stressed that, in the in Balakan region," Nabizade added. production of energy from renewable The state aims at the rational usage of sources, high-voltage lines are not the potential of this industry and used and when high-voltage lines are increase of its competitiveness. used, it is necessary to transform the voltage from high to low. Azerbaijani President Ilham Aliyev signed a decree approving the "State According to him, in 2018, the share Program for the Development of of renewable energy will be higher Tobacco Growing in Azerbaijan for than it was in 2017, and the 2017-2021" on August 10, 2017. prerequisite for this is that one large 50 megawatt wind farm "Yeni According to the order, the State Yashma" and two small stations have Program is aimed at the development been put into operation in the country. of tobacco growing, deepening the "We hope that in the current year the sphere of tobacco processing, share of renewable energy sources in increasing profitability and export the total electricity generation will potential as well as increasing exceed the ten percent level," the employment of the rural population. deputy chairman said. The state program takes into account all the necessary factors for the Agriculture development of this industry - control over the quality of seeds, Azerbaijan's big tobacco producer phytosanitary. This shows that the announces production plans state aims to create all conditions and provide targeted support for the Azertutun Ltd, part of the Azerbaijan development of tobacco growing. Industrial Corporation Currently, the country eyes to (AIC), minimize the import of tobacco intends to products. To this end, the produce manufacturer of tobacco products 3,000 tons of Tabaterra will build a factory of tobacco in 2018, AIC Director tobacco products in the Sumgayit General Kamran Nabizade said. Chemical Industrial Park. Taking into "Azerbaijan plans to produce a total of account the market demand, the

4

Economic news bulletin No 28, October 2018 factory, capable of producing 10 are the same. Hazelnut production billion cigarettes, is able to fully meet plays a significant role in the economy the country’s demand for tobacco of the northern regions. There are products. 8,218 hectares of hazelnuts garden in Khachmaz region, and 3,912 hectares For the first five months of the year, of these are harvested. 1,275 billion cigarettes were produced in the country. In the reporting period, Last year, hazelnut trees were planted the country produced more cigarettes in Azerbaijan on area of 18,000 than during the entire 2017, when hectares. Thus, the total area of 1.241 billion cigarettes were produced. hazelnut gardens in Azerbaijan has reached 55,000 hectares. The main Azerbaijan world’s 3rd hazelnut goal is to bring their area up to 80,000 producer hectares.

Azerbaijan has become the world’s Several varieties of hazelnuts, such as third largest hazelnut Atababa, Ashrafli, Ghalib, Ganja, producer and exporter, Sachagly, Topgara and Yagly, are Azerbaijan Hazelnut cultivated in Azerbaijan. Many of the Producers and country's hazelnut orchards are Exporters Association situated in the foothills of the (AHPEA) said. The Caucasus Mountains in the regions of Association representative further Gakh, Zagatala and Balakan. noted that Azerbaijani hazelnuts are exported to 25 countries, mostly to In 2016 Ferrero, the world’s largest Italy, Russia and Germany. buyer of hazelnuts started purchasing large quantities of Azerbaijan’s “The hazelnuts produced in hazelnuts. Last year Azerbaijan Khachmaz region are exported to the produced 45,500 tons of hazelnut, Russian Federation, and the hazelnuts which was 32.9 percent higher than in produced in Gabala-Oghuz, Gakh- 2016. Zagatala and Balakan regions are exported to European countries,” Transport according to the Association. Azerbaijan to get 30 Swiss-made Answering the question on the amount railcars of the exported hazelnut, AHPEA stressed that as many as 20,850 tons It is planned to deliver 30 railcars of hazelnut was exported in 2017 and manufactured by the Swiss company the expectations for the current year Stadler Rail Group to Azerbaijan,

5

Economic news bulletin No 28, October 2018 Chairman of the Azerbaijan Railways which were initiated by Azerbaijan, in CJSC Javid Gurbanov said at the 9th terms of the development of regional Azerbaijan-Russia Interregional cooperation. Forum in Baku. "Some 30 railcars will be delivered to Azerbaijan in the first Tourism months of 2019. The railcars are manufactured in Zurich, Switzerland. Azerbaijan and Switzerland will On new trains it will be possible to increase the flow of tourists in both arrive in Kars in 10 hours, in directions in 20 hours," Gurbanov said. Azerbaijan Railways ordered 30 Within the framework of the visit of railcars at Stadler Rail Group for Federico passenger transportation along the Sommaruga, Baku-Tbilisi-Kars railway (BTK). Director Emerging Markets & Azerbaijan’s transit potential Special Projects at Switzerland presented in Zürich Tourism to Azerbaijan, a Memorandum on the development of JCC held its third New Silk Road relations between the tourism Forum on September 18, 2018 in associations of Azerbaijan and Zurich. This flagship event in Switzerland was signed. partnership with the Swiss-Chinese Chamber of Commerce (SCCC) The document was signed on the examined the new infrastructure, Azerbaijani side by the CEO of the energy and trade linkages from China Azerbaijan Tourism Board Florian through Russia, Central Asia and the Sengstschmid, and with the Swiss side South Caucasus to Europe. - by the Director Emerging Markets & Special Projects at Switzerland Natig Jafarov, Director of ADY Tourism Federico Sommaruga. Container highlighted the The Memorandum aims to exchange country’s information, develop cooperation in transport, transit the field of tourism, and organize joint and logistic events. The parties will make efforts potential, investment and business to increase the tourist flow in both climate in the country, as well as directions. Particular attention will be regional energy and transport projects paid to the development of winter implemented under Azerbaijan`s tourism. leadership. He noted the importance of energy and transport projects, 6

Economic news bulletin No 28, October 2018 Heydar Aliyev International on over 40 destinations. Top ten most Airport served about 3.5 million popular international destinations passengers during nine months of include , , Dubai, 2018 Antalya, Sharjah, Kiev, Baghdad, , Bodrum and Tel Aviv. During the first nine months of 2018, 328,000 passengers traveled to these Heydar Aliyev destinations during this period. International Airport served The new airport terminal of Heydar 3.49 million Aliyev Airport (Terminal 1) was put passengers. This into operation in April 2014. Its total indicator exceeds the same indicator area is 65,000 square meters. of the previous year by 10 percent. National air carrier Azerbaijan Heydar Aliyev International Airport Airlines (AZAL) carried 1 million was awarded the category of "4 stars" 512,000 passengers, while national by the Skytrax, which is influential low-cost airline Buta Airways – British consulting company 345,000 passengers. specializing in the study of the quality of services provided by various 3 million passengers (86 percent of airlines and airports worldwide. passenger traffic) accounted for international flights since the In March 2018 Baku Heydar Aliyev beginning of the year. 34 percent of Airport was named the best airport total number of international among airports of Russia and CIS passengers accounted for AZAL, countries for the level of the provided while 11.5 percent - Buta Airways. services, being awarded the prestigious Skytrax World Airport In addition to AZAL and Buta Awards for the second year in a row. Airways carrying out international passenger flights in August, the top Announcements and Notifications ten airlines also included FlyDubai, Turkish Airlines, Air Arabia, Aeroflot, Bakutel 2018 - 24th Azerbaijan UIA (International Airlines of International Telecommunications, Ukraine), Qatar Airways, Utair, Iraqi Innovations and High Technologies Airways, Lufthansa and S7 Airlines. Exhibition and Conference. In total they served 143,000 passengers. Bakutel 2018 exhibition, which has turned into a constant event, plays the Currently, Heydar Aliyev role of platform where the latest high International Airport serves 30 airlines technology achievements of

7

Economic news bulletin No 28, October 2018 Azerbaijan, as well as many other countries and companies in the world The twenty-fourth Bakutel takes place are presented. Traditional Bakutel on 4 days from Tue., 04.12.2018 to exhibition is a place to demonstrate Fri., 07.12.2018 in Baku. the latest ICT achievements and present advanced technological For more information, please innovations, apart from being a good visit website www.bakutel.az opportunity to get acquainted with our country, it is also an invaluable platform for the establishment of business relations and exchange of experience.

Exhibitors include telecommunications and networks, IT and office technologies, Cable and wireless, Satellite communications and technologies, Broadcasting and professional equipments, Banking technologies and services, Broadband communications and technologies, Software and ICT systems will be showcased in the trade show.

Visitors like General managers and directors, IT managers Technical managers, System administrators, Web-designers, Designers, Operators, Telecom managers Safety appliances engineers, Purchase managers, Office managers, Representatives of governmental structures and embassies, Chief accountants Chiefs of institutes will visit the trade show. Bakutel is an international exhibition and conference for telecommunications and information technologies and one of the largest events of its kind in the Caspian and Caucasus region.

8