The Azerbaijani Government has implemented a series of measures to accelerate economic reforms, rehabilitate and restructure the metallurgic complex, and attract investments to this area.

Building on these reforms, the Presidential Decree intends to offer “Dashkasan Filizsaflashdirma” OJSC, which is part of Azerbaijan Steel Production Complex, for privatization and to transfer it to the State Committee on Property Issues of Azerbaijan Republic according to sub-clause 2.2.19 of the Second State Program for Privatization of State-Owned Property of Azerbaijan Republic.     

The Cabinet of Ministers has been charged with the task of completing handover activities with regard to the transfer of “Dashkasan Filizsaflashdirma” OJSC and its assets to the State Committee on Property Issues of Azerbaijan Republic within a month, and addressing other issues arising from the Decree.   

According to the Center for Economic Reforms Analysis and Communication, the Decree, which includes privatizing the state-owned shares of “Dashkasan Filizsaflashdirma” OJSC through investment tendering, is aimed at ensuring profitability and increasing efficiency of the company. With that in mind, reputable consulting companies will be engaged to ensure that the State Committee on Property Issues holds the investment tender more effectively and in the best strategic interests of the government.   

Allowing foreign investors to be involved in the effective privatization of the state-owned shares of the company will have a positive impact on the growth of the non-ferrous metallurgic industry through attraction of foreign investments to this area. That will enhance competitiveness through introduction of latest technologies in the production process and reduction of costs of the directly produced goods. Effective organization of the production process will help increase trade turnover and direct budget revenues over the mid-term period.   

Additionally, it is expected that privatization and effective coordination of the state-owned property based on business management rules will significantly contribute to reduced government expenditures, and have a special role in increasing regional employment.       

Development of the metallurgic industry will also stimulate the growth of the supply sector and production of export-oriented products significantly, and reduce dependence on imports in Azerbaijan. The decree will ensure development of small and medium enterprises and consequently, increase the transmission effect of the economic reforms.       

Commission is established to further improve business environment 

Existence of the advanced regulatory and legal framework is preconditioned by the development of entrepreneurship, improvement of government regulation aimed at enhancing competitiveness of businesses, and formation and increased availability of attractive business and investment environment based international best practice.

According to the Center for Economic Reforms Analysis and Communication, the government has implemented a series of complex measures for developing public-business relations, eliminating illegal interventions and artificial barriers in entrepreneurial activities, increasing competitiveness and export opportunities, forming a mechanism designed to provide state support for and to promote businesses, and delivering e-government services to reach the above-mentioned targets.                  

The Presidential Decree on the establishment of the Commission and Commission Secretariat builds on these reforms and is aimed at ensuring sustainability of recent and rapid development of entrepreneurship, strengthening competitiveness, and ensuring that Azerbaijan ranks higher in global ratings.             

Yagub Eyyubov, Deputy Prime Minister, is Chairman of the Commission. Members of the Commission include Shahin Mustafayev, Minister of Economy, Samir Sharifov, Minister of Finance, Tahir Budagov, Chairman of State Statistics Committee, Inam Karimov, Chairman of the State Agency for Public Services and Social Innovations under the President of Azerbaijan Republic, Vusal Gasimli, Executive Director of the Center for Economic Reforms Analysis and Communication, and Mammad Musayev, President of National Confederation of Entrepreneurs (Employers). Elkhan Mikayilov, Head of Sector of Assistant Service of the President of Azerbaijan Republic on Economic Reforms, is Head of the Commission Secretariat. The Commission will form the Commission Secretariat within 10 days composed of one representative from each state agency mentioned in the Decree.                  

Additionally, the Commission shall assess the existing legislative framework and administration, and submit draft proposals and action plan to the President of Azerbaijan Republic necessary for increasing investment attractiveness and ensuring that Azerbaijan ranks higher in global ratings.

According to the Decree, the Commission may engage local and international experts, international organizations and research institutions to implement the above-mentioned measures. In addition, different working groups composed of representatives of different state agencies and stakeholders can be set up to reach targets.  

The Decree is exclusively important for developing the non-oil sector and public-business relations and creating attractive business and investment environment in line with international best practice.   

In addition, effective coordination and efficient organization of business reforms will be ensured to achieve adoption of more inclusive and flexible decisions. The scope of e-government services will also be expanded and consequently, the business and investment environment will be more attractive to both domestic and foreign investors in Azerbaijan. The Commission will have an exclusive role in attracting investments to the country, increasing exports, and ensuring that Azerbaijan ranks higher in global ratings.