Guide to doing business in Azerbaijan – Overview
Guide to doing business in Azerbaijan
This series of posts will provide up-to-date information on conducting business in Azerbaijan. These comprehensive would-be-guide series include a general overview of the country and its socio-economic, business conditions such as legal and supervisory framework, tax issues, investment opportunities and so on.
The Republic of Azerbaijan is a secular, democratic, presidential republic according to Constitution of the Azerbaijan Republic dated to 12 November 1995. The highest legislative body is National Assembly so-called Milli Majlis with a single chamber of 125 members.
Regained its independence in 1991 after the Soviet collapse, whereas Azerbaijan Democratic Republic (1918-1920) was the first democratic country in the Turkish and Muslim orient.
20% of Azerbaijani territory has been occupied by Armenian troops on dispute artificially created after the soviet collapse. Azerbaijan and Armenia are still at war, however, a temporary ceasefire has been in place since May 1994. In fact, as a result of the war, almost million ethnic Azerbaijanis have been displaced from their homes.
The population is approximately over 9.5 million. The country is neighbored with Russia, Iran, Armenia, Georgia, Turkmenistan, Kazakhstan, Turkey.
The biggest cultural, political, most industrialized city is Baku with a population of 4 million where Ganja possesses the second most socio-economic impact.
With its vast oil and gas reserves, Azerbaijan has managed to create a less-divergent economy where its oil and gas industry still accounts for the biggest part of its exports.
However, the country has been able to create relatively better and sophisticated industrial, agricultural, healthcare, banking infrastructure in comparison to other South Caucasus states.
The national currency and the only payment facility of the country are Manat since January 1, 1994. Currently, the AZN/ USD exchange rate is nearly: 1.71 AZN = 1 USD. AZN/EUR rate is more or less 1.85 AZN = 1 EUR as a consequence of two consecutive devaluations between in less than a year period.