Main Directions of the Non-Oil Export Sector in Azerbaijan

Abstract

ABSTRACT Development of the non-oil sector and diversification of the national economy in Azerbaijan have become important issues for the government of Azerbaijan. The latter becomes an unavoidable policy issue for the government of Azerbaijan due to fluctuating oil prices in the world market, as well as to changing trends in international economics and politics. Oil and gas are considered a nonrenewable resource for the economy. On January 23, 2018, President Mr Ilham Aliyev said while attending an interactive session on Strategic Outlook: Eurasia, held as part of the Davos World Economic Forum, “As a source of major income we should look at technology, innovation, industry, entrepreneurship, and agriculture.” Although technology, innovation, industry, entrepreneurship, and agriculture have been identified as important sectors of the national economy and large-scale reforms are conducted, this article finds that Azerbaijan is still at the earliest stage of economic diversification and its economy is still fueled by oil and gas revenues. Despite the fact that main directions of the non-oil export sector in Azerbaijan have been identified and reforms are conducted, future progress will depend on how deeply the reforms will move.