IT & Technology
Information-communication technologies (ICT) play a crucial role in promoting Azerbaijan’s efficient transition to innovation, technology and knowledge-based economy. ICT has been identified as one of key priorities in non-commodity sector development, economic diversification, balanced development of the country’s regions, promotion of “Make in Azerbaijan” concept and “Made in Azerbaijan” brand. ICT matters have been included in “Azerbaijan 2020: The Vision to the Future” development concept, as well as in the strategic roadmap of the national economy and its key sectors. Azerbaijan’s IT sector is expected to grow by an average of 12.3 percent annually from 2018 to 2022, In the IT services and software sectors, an average growth of 16 percent per year is expected. A corresponding increase of 11.3 percent in IT equipment is forecast. The whole IT industry market could reach $1.6 billion in 2022, compared with approximately $0.9 billion in 2018.
ICT is Azerbaijan’s second most profitable sector after hydrocarbons. It is also the second largest recipient of FDI after the oil and gas industry. The Networked Readiness Index ranks Azerbaijan far and away as the leading country in the CIS for connectivity at all levels. The government is fully behind ICT’s continued growth, an indication of the importance of this industry to the country’s future.
Industrial and techno parks have been established in the country and are aimed at promoting digital economy and increasing the global competitiveness of the small and medium-sized enterprises. Tax and customs incentives are provided for the residents of industrial and techno parks for a period of 7 years. Moreover, business procedures are simplified and registration process is electronically realized in one-stop-shop.