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Investment zones to play a major role in non-oil sector's development

Investment zones to play a major role in non-oil sector's development

Economy
25 April 2016, 15:29 766
After Azerbaijani President Ilham Aliyev's order, areas of economic activity which investment put, a minimum amount of the project’s volume also administrative and territorial units have been defined. According to the order, Baku, Baku settlements and Absheron, Sumgait, Ganja, Nakhchivan, frontier regions have been divided into five investment zones.
Moreover, 31 types of economic activity which considered priority were chosen. Depending on regions a minimum amount of investment is 0,2-10 mln manat. Only for one type of activity (extraction and processing of metal ores) the minimum amount of investment must be 50 mln manat. 
What is the essence of division of investment zones ? What will bring the division? 
Economist Vugar Bayramov talked to Kaspi about significance of the order: "Naturally, the order will play remarkable role in the counrty’s economy in near future. There are some goals on making the decision.  The most important point is to achieve attraction of investments and assessment of taxes according to structure of the country’s regions. Let’s take into account that each region of Azerbaijan has different structure. Besides, regions have got different potentials in terms of business, investment, and agro-industrial sector. In this regard, grouping zones will allow to attract investment in every region in accordance with their structures.
V. Bayramov noted that the zone division may be considered a very significant step from attraction of domestic and foreign investments point of view: " This step is very salient in terms of attracting domestic investment in regions.  Foreign investment in our country also will make great opportunity. The zone division of regions will increase creation of new jobs: "The decision will allow to establish industrial zones in the regions. Of course it is significant for creation of new jobs. As well as, the zones will be classified in accordance with  industrial and agricultural sectors which are very significant in terms of those regions’ development. Actually, one of the targets of classification of zones is to take into account distinctive features of zones. Another issue is establishment of industrial enterprises  in those zones after attraction of investment. That is why this decision makes opportunity to implement various projects
Chairman of "Ekonomiks” Association for International Economic Studies Fikret Yusifov commented on targets and perspectives of the above-mentioned decision: "The prime goal of the decison is to provide  maximum efficiency of investments. The new decision will play a significant role in growth of the county's economy, specially in non-oil sector. The step taken in investments field should be assessed as part of economic reforms held in the country. Recently, decisions made by the government have targeted rapid development of real sector of country's economy.  
F. Yusiforv also noted that this step will allow regions to realize their potential: " The decison will allow right division of investments according to fields and entirely,   full coordination of these processes". 
 
Shabnam Mehdizadeh