Economic news bulletin No 29, November 2018 most important indicators of social progress.

“Azerbaijani women are active in all spheres and participate in the formation of public opinion,” he noted. He noted that the employment level of women in is high in a number of spheres, in particular in Economic News Bulletin education and healthcare. Embassy of the Republic of Azerbaijan to the “We encourage equal participation of Swiss Confederation and men and women in all spheres. In this Principality of Liechtenstein aspect, wider participation of women Kramburgstrasse 10, 3006 Bern in the business sphere is one of the tel: +41 31 350 50 44 directions of the policy being fax: +41 31 350 50 41 implemented. We encourage equal e-mail: [email protected] participation of men and women in all spheres. In this aspect, wider Macroeconomics participation of women in the business sphere is one of the directions of the Deputy PM: Azerbaijan aims at policy being implemented,” Ali more active involvement of women Ahmadov stated. in business Ahmadov added that the Azerbaijani Azerbaijan aims to ensure that more government pays great attention to the women are development of SMEs, carries out the engaged in necessary work and allocates funds for activities in the business development. small and “Azerbaijan will continue creating medium-sized wide opportunities for SMEs,” he said. enterprises Nowadays, the stereotype that (SMEs), thereby contributing to the business is a purely male activity and country’s economy, Deputy Prime there is no place for female Minister Ali Ahmadov said. He was entrepreneurs in it has already been speaking at a conference on the topic destroyed. of new opportunities in women’s entrepreneurship, dedicated to Global In the current market economy, when Entrepreneurship Week. He said that the country switched to a new model the activity of women is one of the of economic development, the role of

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Economic news bulletin No 29, November 2018 women is increasing. In Azerbaijan, said at the plenary session of the the development of female Azerbaijani parliament. “Considering entrepreneurship is supported not only the changes taking place in the global by society, but also by the government. economy and the economic situation As a result, in recent years, the in our main partner countries, number of women in business has Azerbaijan’s Economy Ministry has increased by several times. prepared socio-economic indicators for 2019 and for the medium term Azerbaijan pays special attention to over the next three years,” Mustafayev the development of entrepreneurship said. among women and young people, however, as throughout the world, the The minister noted that according to potential of women entrepreneurs in the forecasts of the the country is not fully realized. If we International compare the development of women's Monetary Fund entrepreneurship in Western countries, (IMF), the average then there is information to think global economic about. In particular, in Western growth in 2018 and 2019 will be 3.7 countries there are a lot more women percent, and according to the working at the top management level. calculations of the World Bank (WB), On the other hand, if we look at the this figure will be 3.1 percent. CIS countries, a lot of women entrepreneurs have appeared in Mustafayev noted that along with the Azerbaijan in recent years. By 2015, positive trend currently observed in this figure stood at the level of 15-18 the world, there are still some risks. percent in the region, now it makes As a result of tightening of financial about 30 percent. This was achieved requirements in a number of countries, largely due to the consistent policy of the main risk factors include reduction the country, the adoption of several in capital flows to developing important laws in the field of economies, as well as the application entrepreneurship and, more of new trade tariffs, geopolitical importantly, their implementation. tensions in some countries and the loss of value of the national currency Non-oil sector growth projected in of major trading partners, he said. Azerbaijan “The course of sustainable As a result of the measures taken in development and socio-political Azerbaijan, it is projected that the stability, the foundation of which was non-oil sector will grow 3.9 percent, laid by national leader Heydar Aliyev, Economy Minister Shahin Mustafayev was further strengthened under the

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Economic news bulletin No 29, November 2018 leadership of his worthy successor is expected in subsequent years,” the President Ilham Aliyev,” Mustafayev minister said. “Investments in fixed added. “As part of this course, assets next year will be 17.9 billion comprehensive measures were taken manats, and the value of domestic to accelerate diversification of the investments will amount to 4 billion economy, the growth of production manats. In 2019, the construction and export of the non-oil sector, as sector is expected to grow by 2.5 well as development of labor relations, percent.” was ensured, the improvement of the business environment and the The minister also said that already 63 regulatory framework in the sphere of percent of companies that received entrepreneurship activity was ensured, investment promotion documents and business support mechanisms started their work, while the were created.” remaining companies are expected to start their work before the end of this Mustafayev also noted that in the year. WB’s Doing Business 2019 report, Azerbaijan entered the list of the 10 Industry most reformist countries in the world, and became the country that Azerbaijan improves position in conducted the largest number of WEC’s Energy Trilemma Index reforms. 2018

The minister noted that in 2019, GDP Azerbaijan has jumped up by four is projected to increase by 3.9 percent, points and and in subsequent years by an average acquired the of 3.4 percent, while the current 27th position account balance is projected to be among 125 positive. The minister said that after Countries in analyzing the changes in the global World Energy economy and the forecasts of Trilemma Index 2018 published by international organizations, the price the World Energy Council (WEC) in of one barrel of oil for the medium partnership with global consultancy term was set at $60. Oliver Wyman. Last year, Azerbaijan stood at 31st place in the WEC’s “Next year, an increase in oil and gas Energy Trilemma Index which ranks production at the Shah Deniz field is Countries’ energy performance on expected, an increase of 3.1 percent is three dimensions; (1) Energy Security, expected in the oil sector, and an (2) Energy Equity, and (3) increase by an average of 3.2 percent

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Economic news bulletin No 29, November 2018 Environmental Sustainability based on and climatic diversity create favorable global and national data. foundation for ever-strengthening agrosector. Presence of nine climatic In the Energy Trilemma Index, zones allows the country to produce a stood atop followed by variety of agricultural products and and Sweden at 2nd and brings about new opportunities for 3rd positions respectively for coming up with different types of maintaining well-balanced energy goods. systems. As one of the leading agro-food Likewise, Netherlands, United producers in the Kingdom (UK), , , whole CIS, New Zealand, Norway and Azerbaijan seeks were also ranked from 4th to 10th to further positions respectively in top 10 develop its performers. agriculture and food industry for import substitution The World Energy Trilemma Index purposes in parallel with enhancement prepared annually by the WEC in of export capabilities. Azerbaijan has partnership with Oliver Wyman is a 4.8 million hectares of agricultural comparative ranking of 125 Countries’ land, which comprises over 50 percent energy systems. It provides an of its total , of which 39.6 assessment of a Country’s energy percent is arable. Meanwhile, the system performance, reflecting food-processing sector constitutes an balance and robustness in the three important component of the national trilemma dimensions including economy and accounts for over 38 Energy Security, Energy Equity and percent of total manufacturing Environmental Sustainability industry. The revival of agriculture sector plays an important role in the Agriculture development of rural regions, where 47 percent of Azerbaijan’s population New greenhouses to appear in lives. Azerbaijani with WB support Therefore, the government has Agriculture is one of the most targeted agriculture as one of the important sectors of the economy in priority areas of diversification of Azerbaijan - a country that is Azerbaijan’s economy and is considered to be one of the earliest constantly implementing various sites of human agricultural activity. successful projects in this field. The fertile lands, abundance of water

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Economic news bulletin No 29, November 2018 The Azerbaijani Ministry of Greenhouse was built on a plot of 40 Agriculture has launched a project to acres. The area of covered soil create greenhouses within the suitable for sowing is 25 acres. Since framework of a joint project with the October, 9,000 tomatoes have been World Bank (WB), the second phase produced in the greenhouse. From of Azerbaijan Rural Investments February to May it is planned to (AzRIP), the agency said. The project increase the sale of products. also involves the State Service for The second phase of the AzRIP Agricultural Projects and Credit project has been implemented in Management. Azerbaijan since 2012. This project was created on the basis of the results A greenhouse created in the village of of the first phase, which contributed to Yeni Dashkand an increase in the incomes of of the Barda 600,000 farmers, improvement of region was irrigation services for 700,000 commissioned people. The project covers five main as part of the zones - flat Shirvan, Mugan-Salyan, project. The Nakhchivan, northern and north- ceremony, held on this occasion, was western zones. attended by representatives of the State Service, the Executive Authority Regardless of geographic location, the of the Barda region, the chairmen of majority of greenhouse cultivation the municipality and residents of the systems in Azerbaijan consists of villages where AzRIP is implemented. fundamental climate control The head of the State Service for components. Additionally, they can Agricultural Projects and Credit provide a greater or lesser amount of Management, Mirza Aliyev, noted climate control, and subsequent plant that the project to create greenhouses growth and productivity depending on was selected based on the results of an their design and complexity. analysis conducted by members of the rural community. The project is Founded in 1944, the WB activity managed by community members, and touches nearly every sector that is they will distribute the important to fighting poverty, received income among supporting economic growth, and themselves. Six members of the ensuring sustainable gains in the community will be recruited for quality of people’s lives in developing permanent jobs, and nine for seasonal countries. Azerbaijan joined the work. World Bank Group in 1992. Since then, commitments to the country

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Economic news bulletin No 29, November 2018 totaled over $3.78 billion for 50 collaboration may not be developed in projects. the near future due to different geographical location of the ports. Transport As far as the collaboration between is one of main hubs along Belt the Port of Barcelona and the Baku and Road Initiative Sea Trade Port is concerned, please take into account that the location of The successful transport projects, such the Port of Barcelona determine that as Baku- its cooperation strategy is focused in Tbilisi-Kars, the Mediterranean/South European South-North, area, he said. Alat International "In the recent years, the Port of Sea Trade Barcelona has been developing Port, carried out by Azerbaijan, cooperation projects with other considerably contribute to the One maritime ports in the Mediterranean Road, One Belt initiative. Chairman of area and its strategic plan establishes the Port of Barcelona Santiago Garcia- as a priority to continue with this Milà told Trend that Baku is one of strategy for the next years. This means main hubs along Belt and Road that the collaboration of the Port of Initiative. Barcelona with the Port of Baku, located in a different geographic area, "I would like to highlight the great may not be developed in the near impact of the IAPH Baku World Ports future," he said. conference in the port sector. With more than 400 participants from 65 The IAPH World Ports Conference countries and the high level of the 2018 was held in Baku on May 8-11. working sessions Baku conference The main theme of IAPH World Ports was the most successful and well- Conference 2018 is “Ports of the attended mid-term conference of Future: Creating Hubs, Accelerating IAPH. Undoubtedly, it promoted the Connectivity”. role of Baku as one of the main hubs along the Belt and Road Initiative The event was attended by port heads, (BRI)," he noted. government representatives, professors and experts from around The Chairman of the Port also spoke the world, including Europe, , about the possibilities of cooperation , Georgia, Indonesia, Nigeria and between the Port of Baku and the Port others. The participants of the event of Barcelona, saying that such a discussed cargo transportation along

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Economic news bulletin No 29, November 2018 the Silk Road, the development of In 2017, the volume of freight traffic transport hubs and the role of ports in through the Baku International Sea this issue, as well as issues of Trade Port (excluding the oil terminal) multiculturalism, cultural differences rose by 31 percent and totaled 4.4 in global logistics, the work of free million tons as compared to 2016. trade zones, increasing competition About 85.7 percent of the total volume among them and other topics. accounted for the share of transit cargo transportation. The Baku International Sea Trade Port is located on President Ilham Aliyev signed a an area of 400 decree on March 17, 2016, on hectares of land, of measures to create a free trade zone which about 100- type special economic area covering 115 ha cover the the territory of the Baku International area for the Sea Trade Port in the Alat township of development of the international Baku’s Garadagh District. Logistics and Trade Zone. The northern areas around the port are The FTZ is expected to bring up to $1 reserved for future expansion of billion just in the logistics, industrial, and first few years. manufacturing activity. Special tax and customs policy, The Port is expected to become one of which will be pursued in the territory the leading trade and logistics hubs of of the free trade zone will also Eurasia. The implementation of all stipulate further development and three phases of construction is simplification of a number of projected to increase the capacity up procedures. FTZ will be located to 7,660 tons on a daily basis. within the grounds of the new port, covering an area of 100 hectares. The cargo handling capacity of the Since the new port is being built at the port, opened on May 14, 2018 with major railway juncture connecting the the participation of President Ilham North-South and the East-West Aliyev, within the first phase is 15 railway lines in Azerbaijan, FTZ will million tons, including 100,000 also have rail access. Serving as a containers per year. Seven of 12 multimodal transit logistics hub, the existing berths serve dry cargo ships, new port and FTZ will become a two berths - ferries, two more berths - major consolidation and distribution Ro-Ro and Ro-Pax vessels. centre in Central Eurasia that provides a wide range of value added services.

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Economic news bulletin No 29, November 2018 The Baku International Sea Trade Port The Azerbaijani State Tourism has signed a number of documents on Agency is developing proposals to cooperation with foreign partners. create modern infrastructure on the Memorandums of understanding were territory of the Yanardag State signed between Baku International Historical-Cultural and Natural Sea Trade Port CJSC and ’s Reserve, Kenan Guluzade, head of the Lianyungang Port Holding Group Ltd, public relations department of the China’s COSCO SHIPPING Lines agency, said. He said that at this stage, Co., LTD and Mumbai Port Trust work actively continues on the (India). reconstruction of the reserve, which is a part of the state agency. The memorandum of cooperation was signed between the Baku International "Azerbaijani President Ilham Aliyev Sea Trade Port and China’s Port of signed a decree Guangzhou. All above mentioned on measures to measures undertaken will undoubtedly reconstruct the play an important role in Yanardag State strengthening the country's transport Historical- infrastructure. Cultural and Natural Reserve in order to create Tourism modern tourism infrastructure in the territory of this reserve," he said. Azerbaijan talks infrastructure Guluzade noted that seven reserves modernization of cultural reserves are included in the agency’s structure. "Besides Yanardag, the agency’s Azerbaijan, a country with a rich structure includes the Ateshgah culture and Temple State Historical-Architectural centuries-old Reserve, the Basgal State Historical history, has a and Cultural Reserve, the Khinalig variety of State Historical, Architectural and architectural monuments and sights. Ethnographic Reserve, the Lahij State Historical and cultural reserves of Historical and Cultural Reserve, the Azerbaijan have a special place Yukhary Bash State Historical and among such attractions. Reserves Architectural Reserve in Sheki city under the Ministry of Culture and and the Kish State Historical and Tourism create extensive Architectural Reserve. By his decree, opportunities for the development of the president of Azerbaijan instructed cultural tourism in the country. the state agency to prepare the relevant information on condition of the Basgal State Historical and

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Economic news bulletin No 29, November 2018 Cultural Reserve, as well as to prepare proposals for the development of The small yet miraculous Khinalig is tourism infrastructure in the territory located at the peak of the Caucasus of this reserve," said Guluzade. Mountains, 2,350 meters above the sea in Guba region. This village itself He noted that the State Tourism is enlisted as a State Historic- Agency is working on all the issues, Architecture and Ethnography as well as closely studying the Preserve from 2007. situation in five other reserves, where work of a similar nature is planned. There are a number of tours and Cultural reserves and historical sites guests houses in operating in the regions of the country the village, which have attracted many visitors make trip to throughout the year. Khinalig more convenient for tourists. In 2017, a One of such examples is Ateshgah great number of tourists visited the Temple. The State Historical-Cultural and Natural place that is Reserve of Yanardag. During the year, saturated with 54,717 out of 63,574 people that ancient history visited the place were foreign tourists. and religious They mostly came from , the beliefs is United Arab Emirates, Iraq and other among the most attractive places of countries. the country. The number of tourists visiting the place is increasing every Last year, 56,742 tourists visited the year. Last year the number of tourists Yukhari Bash State visiting Ateshgah was 30,751, while Historical- 25,346 of which were foreigners. The Architectural main share of those who visited Reserve in Sheki. Ateshgah made up the tourists coming Some 40,182 from Russia and Arab countries. people visited Lahij State Historical and Cultural Reserve in Ismayilli, and Basgal settlement is located in the 25,850 tourists came to see Kish Ismayilli district at an altitude of 998 Historical-Architectural Reserve in meters above sea level and is also a Sheki. In 2016, some 356,000 part of the state cultural and historical tourists visited the historical and reserve. It is protected by the state. cultural sites, whereas in 2017 this According to a number of historians, figure reached 486,233, a considerable Basgal was founded in the fourth share, namely, 166,153 of which fall century. on foreign citizens.

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Economic news bulletin No 29, November 2018 Announcements and Notifications

Azerbaijan International Travel & Tourism Fair (AITF)

Azerbaijan International Travel & Tourism Fair (AITF) is a 3 day event being held from 4th April to 6th April 2019 at the Baku Expo Center in Baku, Azerbaijan. This event showcases products like reflects dynamic development of the very promising tourism market in the region and establishes a solid platform for domestic and international experts to demonstrate the recent trends in business, incentive, health and luxury travel etc. in the Business Services, Travel & Tourism industries. AITF is the main event in Azerbaijan’s fast growing tourism market attracting a large number of international participants and trade visitors from year-to-year becoming the ‘hub’ for the tourism industry of the entire Caspian region. It is where important meetings are organised, partnership agreements are concluded, new programs and destinations are announced.

Website www.bakutel.az

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