This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 7/2/2019

Overview

Information/Communications Technology is also one of the four target sectors for economic diversification and the second-largest target for foreign investment after the oil and gas industry.  The Azerbaijani government seeks to develop the country's IT market, having launched education and e-government programs, increased digital resources available to schools and universities outside of Baku, and expanded e-services.  The government also established several technological parks throughout the country that offer tax breaks and exemptions for companies.  These incentives include profit, land, and property tax breaks and VAT exemptions for imports for the first 7 years after a company begins operations at the technological park.  Despite these projects and government plans to liberalize the telecommunications sector, the regulatory framework governing telecommunications and information technology needs improvement.  

As in other sectors, intellectual property protection is weak in the IT industry.  Several large multinational companies have expressed concerns about unlicensed software in both the public and private sectors, though some progress has been made by some companies that have worked directly with the government to address the issue.  The ability to control or protect intellectual property rights in the private sector is constrained.
 

Leading Sub-Sectors

E-governance has been a successful area for collaboration between businesses and the Government of Azerbaijan.  The Ministry of Taxes has moved tax payments online, the Customs Committee has introduced electronic application and payment services, and the "Asan İmza" mobile electronic signature technology enables the use of mobile phones as an electronic identity card and means of signing documents.  U.S. businesses with similar solutions may find opportunities in these modernization and e-government efforts.

Azerbaijan has been actively developing its satellite services to build its regional commercial telecommunications capacity.  Azercosmos, Azerbaijan’s space agency, successfully obtained and launched U.S.-produced telecommunications satellites in 2013 and 2018.   
 

Opportunities

The potential for e-governance and e-commerce solutions is under-fulfilled and presents an opportunity for well-crafted and well-implemented solutions.  Consulting firms experienced in the development of IT sectors may find their experience sought-after by the public and private sectors in Azerbaijan.  Companies with expertise in satellites may benefit from Azercosmos’ interest in acquiring new capabilities.  The annual BakuTel IT expo provides global companies an opportunity to reach potential customers and investors throughout the Eurasian region. 
 

Web Resources

Ministry of Transportation, Communication and High Technologies: http://www.mincom.gov.az/

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