Investment policies and competitiveness of Azerbaijani economy

Azerbaijan has made remarkable achievements in economic growth due to rational investment policies and attraction of foreign investment in oil and gas sector that became engine for development. Country's current economic policies and strategies aimed at lessening of dependence on mineral sector through diversification, growth of business and employment in non-oil sector. Sustainability of Azerbaijani economy will require shift towards technologically advanced and innovation friendly production with balanced approach to manufacturing, services and agriculture. It is advisable to pursue policy of attraction of FDI into these sectors in combination with various non-equity forms of cooperation, such as subcontracting, licensing and franchising. Italy and Azerbaijan have very good basis and instruments for cooperation. However, Italian companies have to be more proactive in finding areas for investment and considering participation in various developmental projects. Cooperation on equity and non-equity basis and experience of Italy in developing SME could be right directions for expansion of economic cooperation.