Baku is the main of the 5 customs airports in Azerbaijan and is a major hub for the region. Freight rates are available on a variety of carriers, with freighter links available for larger cargo.
DFS Worldwide offers trucking service from UK to Azerbaijan. We can offer you road service to Baku or any other delivery address for your commercial and personal goods.
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Speak to our Azebaijan specialist now: 020 8867 0904.
Azerbaijan has been the world’s fastest growing economy in recent years mainly due to its oil and gas development and the liberalisation of its trade system.
The UK is already the single largest investor in Azerbaijan and is well placed to increase business.
There are currently more than 450 UK companies doing business in Azerbaijan. In addition to oil and gas, UK companies have been successful in areas such as construction management and design, retail and education.
Benefits for UK businesses exporting to Azerbaijan:
Strengths of the Azerbaijan market:
You should ensure you take the necessary steps to comply with the requirements of the UK Bribery Act.
The World Bank estimated Gross Domestic Product (GDP) growth for 2014 at 2.8%. It forecasts 1.5% growth in 2015.
The government aims to further develop the economy through diversification of the economy.
Azerbaijan’s GDP is generated by:
Unemployment has decreased significantly over the last decade. It dropped to 5% in 2014. 8.5% inflation is forecast by the International Monetary Fund (IMF) for 2015.
Azerbaijan withstood the global financial crises relatively well. The government’s economic strategy ‘Azerbaijan 2020: Vision into the future’ aims to:
Total value of UK exports to Azerbaijan in 2014 reached nearly £730 million.
Main exports from the UK include:
DIT provides free international export sales leads from its worldwide network. Search for export opportunities.
The USD 40 billion Southern Gas Corridor project offers huge opportunities for British supply chain companies. BP is the major foreign player in Azerbaijan’s important oil and gas sector.
Shah Deniz gas will travel from Azerbaijan and Georgia on to Turkey through the Trans Anatolian Pipeline (TANAP). It will then go through Greece, Albania and Italy through the Trans Adriatic Pipeline (TAP).
Opportunities flowing from this project will cover nearly every sector from design to education.
The diversification strategy will open up opportunities across many industry sectors for UK companies. There are plans for huge public and private development projects. Multi-million dollar projects include:
The annual Caspian International Road Infrastructure and Public Transport Exhibition in Baku provides an opportunity to network and meet contacts in the infrastructure sector.
The Azeri banking sector is underdeveloped, with little foreign ownership.
The financial sector consists of 181 licensed institutions which can grant loans including:
This whole area of the economy is opening up rapidly, partly due to the government’s industry diversification strategy, concentrating on development of non-oil sectors.
There is scope for UK companies/organisations to support development and share experience/knowledge.
USD 4 billion investment is expected to develop the ICT sector in Azerbaijan by 2020. The Azerbaijani government is looking for UK partners in:
There are some mid-range and high end shopping malls in Baku. Another 2 are due to open shortly.
There are opportunities for the supply of both luxury and mid-range brands in all areas.
Education is one of the priority sectors for Azerbaijan. A state scholarship programme financed by the State Oil Fund encourages students to study engineering, computer science, law at top-rated universities abroad.
There are opportunities for:
Azerbaijan successfully delivered the First European games in June 2015. It will also host Formula One and the Islamic Games in 2017. Infrastructure is mostly already in place, but there will be opportunities around the delivery of these events.
Baku is one of 13 cities appointed by the UEFA to host games at EURO 2020. Opportunities will emerge when tenders are issued.
It’s also a possible bidder for 2024 Summer Olympic Games.
Contact DIT Azerbaijan more information on opportunities in Azerbaijan’s global sports sector.
There are 2 main routes to market in Azerbaijan. These include:
Branches and representative offices of foreign commercial legal entities should register with the Ministry of Taxes. Branches and representative offices of foreign non-commercial legal entities should register with the Ministry of Justice.
There are a number of company legal entities that a foreign company may choose from. They include:
Shares in JSCs must be registered with the State Securities Committee.
You should conduct proper due diligence before entering into any sort of partnership or joint venture with Azerbaijani companies. Contact DIT’s team in Azerbaijan for advice.
Azerbaijani law is based on a civil (continental) law system.
Foreign investment is regulated by a number of international treaties and agreements, and domestic legislation. The main laws are:
International treaties prevail over local law (except for the Constitution and acts adopted by referendum) regulating the same issue.
Azerbaijan acceded to the New York Convention on the enforcement of foreign arbitral awards in 1999. Azerbaijan also passed a law on international arbitration.
The State Committee for Standardization, Metrology and Patent has responsibility for standards and technical regulations.
The State Copyright Agency and the State Committee for Standardization, Metrology and Patent has responsibility for registering intellectual property rights.
Disputes related to industrial property rights are considered by the Appellate Board of the Patent Committee. Their decisions can be challenged in Azerbaijani courts.
The right to a trademark is based on registration with the Patent Committee. Researching trademarks is challenging due to lack of computerisation. This can result in the double registration of the same trademark by different claimants, and then disputes over ownership.
The UK and Azerbaijan have signed a double taxation agreement.
Azerbaijan’s tax system consists of 3 taxation regimes:
Taxes and payments affecting foreign investors operating under the statutory regime include:
VAT is charged at 18%. It is imposed on all companies involved in commercial activities and foreign companies importing goods and services into Azerbaijan.
The general profits tax rate is 20%.
Entities subject to the profits tax include:
The State Customs Committee of the Republic of Azerbaijan has responsibility for customs legislation and guidance.
You can find more about import tariffs in the Market Access Database.
The official language is Azerbaijani. However, Russian is also still widely used and most people in Baku are bilingual. English is also quite widely spoken and understood in Baku.
It can be difficult to do business with Azerbaijan remotely. Azerbaijani companies will often not respond to emails or phone calls.
Personal relationships are very important in this market. Many local companies will have some form of political patronage to provide protection from the difficult business climate.
Azerbaijan is an Islamic Country, but secular and liberal in comparison to some of its neighbours. When exchanging greetings, men should wait and see if a woman extends her hand. If they do, shake it lightly.
Family is a very important part of Azeri culture so greetings should include a reference to this.