Baku business environment more favorable than in regions
In Azerbaijan, there are 71,524 small businesses (+3.3% YTD), according to the certificate of business development in the first quarter.
According to the Ministry of Economy and Industry, small businesses account for 81% of local entities.
As of April 1, almost a third (32%) of small ventures are in trade, 12.3% - in agriculture, 12.5% - in construction and repair, and the rest of the employment is negligible.
Most (55.9%) of this segment of entrepreneurs is registered in the capital, and the rest is in the regions of the country.
Due to underdevelopment of a support mechanism for businesses the majority of small ventures do not work, while some of them are closed and re-registered. There is high proportion of tax evasion and concealment of the actual number of their jobs. -17D-
Economics
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Azerbaijan is poised to increase wheat imports for the 2024-2025 season following a significant drop in domestic wheat production this year. According to data from the State Statistics Committee, the country harvested 1.68 million tons of wheat in 2024, marking an 8.1% decline from the previous year. This downturn in output, combined with rising import volumes in recent months, indicates that Azerbaijan may lean more heavily on foreign suppliers to meet its wheat needs.
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Azerbaijan Railways CJSC (ADY) has announced the restructuring of its container transportation management in an effort to enhance the efficiency of transit cargo transportation. As part of this reorganization, ADY Express will merge with ADY Container starting on November 1, 2024. The consolidation is aimed at expanding the range of services offered in both container and carriage transportation.
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Azerbaijan has introduced a legal framework enabling the electronic state registration of legal entities with foreign investments, regardless of whether their founders are individuals or legal entities, according to the State Tax Service. The announcement was made by Samira Musayeva, Deputy Head of the State Tax Service, during a meeting of the "Entering Business" Working Group.
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The World Bank aims to deepen its involvement in Azerbaijan's economic development through a new partnership framework program, according to discussions between Azerbaijani officials and World Bank representatives. The proposed framework, which will cover the years 2025-2029, is designed to support the country’s transition to an innovative and less resource-dependent economy.
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