According to the World Economic Forum's "IDEA: Investing in Azerbaijan's Digital Economy" report, Azerbaijan has made significant progress in creating a favorable environment for startups and innovations.
According to the report, progress has been reflected in the creation of numerous institutions and programs aimed at supporting business development and promoting innovation (for example, the development of large-scale events, technology parks and business incubators).
The report notes that in recent years, the digital economy has been considered as a component of socio-economic development goals in Azerbaijan. The document states that, in accordance with the national vision of diversifying the economy and reducing dependence on the extractive industry, Azerbaijan considers the role of foreign direct investment crucial in promoting digital development and increasing global competitiveness. The government of Azerbaijan pays special attention to attracting foreign investments, implementing reforms and stimulating the private sector through the 2022-2026 socio-economic development strategy.
The report emphasizes that despite the fact that the main part of foreign direct investments in Azerbaijan is in the oil and gas sector, if you look carefully at the activities of foreign investors operating in the country, the majority of new investment projects (from January 2016 to April 2023) are financial/business services, software , concentrated in sectors such as IT services and manufacturing of industrial equipment.
The government of Azerbaijan is implementing large-scale reforms focusing on the digital economy. The authors of the report note the preparation of the Digital Economy Strategy and the 2022-2026 socio-economic development strategy among the implemented measures. From December 2022, a special working group was established under the Center for Analysis and Coordination of the Fourth Industrial Revolution (4SIM) in order to create a sustainable and competitive digital economy for the development of this strategy.
