Construction & Building Materials
The construction business has evolved into a very competitive sector in Azerbaijan, with a number of strong local companies providing high -quality services for diverse projects, including the development of residential areas, business offices, hotels, etc. Remarkable performance of this sector can be explained by low base effect and government’s anti -crisis measures. As a result of the global financial crisis, construction had contacted by 8. 2 % in 2009. However, measures directed to increase liquidity in the local market, slow recovery of mortgage system and Government’s investments into the sector helped to rebound construction by 20. 3%.
The construction materials industry is one of Azerbaijan’s most promising sectors. It offers many opportunities for foreign equipment suppliers and investors. Domestic demand for high-quality construction materials has in -creased steadily in recent years. The volume of building materials production in Azerbaijan amounted to 325.5 million manats, which is five percent more than in the same period of 2018, the biggest growth, at 1.8 times, was recorded in the production of asphalt, followed by a 65.4-percent increase in the production of processed marble, travertine, alabaster and products made from them, a 62.5-percent increase in the production of building brick, a 38.2-percent increase in the production of building limestone. The government forecasts a 10% expansion in the annual production of construction materials for each of the years 2019-2022. Thus, output in 2022 is expected to reach $600 million.
To create a new mechanism for the development and implementation of strategic projects, the Azerbaijan Construction Corporation is planned to be created in the country’s construction sector to accelerate the development of cities and districts.