Azerbaijan continues to prove an attractive investment
Unlike its neighbouring states in central Asia, Azerbaijan has seen its economy grow at a steady pace. The grip of a global economic downturn has done little to effect progress, as it’s markets have grown by an amazing 900 percent over the last 15 years. But its economic potential remains relatively unknown as investors and fund managers continue to favour emerging markets instead.
With 2015 proving to be a good year for international investment, experts believe that 2016 could be a year we see even greater interest. The reason for this is its abundance of natural resources including ethanol, renewables and gold. Off the back of this the country is experiencing a boost in transport and infrastructure investment, as the government looks to improve services for the population.
Azerbaijan isn’t a country synonymous for self-promotion, and has often been overlooked by the large western investment firms. With a good track record during a tough financial period, investor confidence is evident. Unlike Kazakhstan, Azerbaijan was never over-exposed to financial markets. This has helped the local currency, keeping its competitiveness. It is only smaller business that have felt some effects of tighter global lending.
As Azerbaijan look to ramp up their ethanol production to meet the global demand, the knock-on effect is being seen in both local accommodation, and transport links for workers. There are still some limitations for overseas investors as the country still lacks a sustainable equity market, which limits exposure for limited companies.
This shouldn’t hamper progress, as larger businesses looking to grow will still require outside investment. This means more public offerings, and therefore more opportunity for outside inventors.