Azerbaijan Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in azerbaijan, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Investment Climate Statement
Last published date:

The U.S. Department of State’s Investment Climate Statements help U.S. companies make informed business decisions by providing up-to-date information on the investment climates of more than 170 countries and economies. They are prepared by our embassies and consulates around the world and analyze each economy’s openness to foreign investment. Topics include:

  • Openness to, and Restrictions upon, Foreign Investment,

  • Investment and Taxation Treaties,

  • Legal Regime,

  • Industrial Policies,

  • Protection of Property Rights,

  • Financial Sector,

  • State-owned Enterprises,

  • Corruption,

  • Labor Policies and Practices,

  • Political and Security Environment, and

  • U.S. International Development Finance Corporation (DFC) and Other Investment Insurance or Development Finance Programs

Each statement provides a starting point for U.S. firms and offers a point of contact at the relevant U.S. embassy or consulate abroad.

These reports are also a resource for foreign governments to create business environments that ensure fair treatment for the United States and our companies and investors. 

To access the full Investment Climate Statement, visit the U.S. Department of State Investment Climate Statements website.


Executive Summary - Azerbaijan 

Azerbaijan’s investment climate presents a mixed picture. The economy remains heavily dependent on oil and gas, which dominate both export revenues and the state budget. The slow pace of diversification and structural reforms continues to hinder development of a truly competitive and transparent business environment. While the government made some improvements in 2024, including:

  • enacting a new law on competition,
  • simplifying applications for business licenses, and
  • concluding its first renewable energy auction.
  • Gaps remain, with notable concerns about judicial independence and
  • transparency. These issues, combined with the dominance of a small group of government-connected holding companies and prevalence of state-owned enterprises, could deter potential investors.
     

In addition to energy, the transportation and logistics sectors represent another area for potential investment, particularly given the focus on improving the Middle Corridor and diversifying trade routes away from Russia. Azerbaijan’s strategic location, coupled with investments in its rail system and port facilities create significant opportunities. Azerbaijan also offers incentives to invest in special zones for economic activity, including in industrial and high-tech parks, and for manufacturing facilities in priority, non-oil sectors.

Azerbaijan’s legal framework offers protections for foreign investors, and the country has not exhibited patterns of discrimination against U.S. companies. However, issues such as slow dispute resolution and instances of expropriation, particularly in the real estate sector, require close attention from foreign investors. visit the Azerbaijan Investment Climate Statement on the following link:
https://www.state.gov/reports/2025-investment-climate-statements/azerbaijan/ 

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