Azerbaijan Market Research & Analysis

Market Research AzerbaijanPost the Soviet era, Azerbaijan has transformed into a major oil-based economy, which undeniably led the country to experience significant economic growth. In 2005, Azerbaijan’s GDP grew at 26.4%, making it the country with the second highest GDP growth across the globe. The following year, it finally became the country with the highest GDP growth rate of 34.6%.

Azerbaijan was among the world’s top performer in 2007 - 2008, improving seven out of 10 indicators of its regulatory reform. In 2008 the country started operating a one-stop set of regulation which lowered the time, number of procedures and cost to start a business. Between 2010 to 2011, Azerbaijan was ranked 57th in the Global Competitiveness Index above other CIS countries, and as of 2014, Azerbaijan had the highest foreign investment per capita among the Commonwealth of Independent States. Ever since the country gained independence, companies have invested more than $170 billion into Azerbaijan, with foreign direct investments accounted for half of the total amount.

Two-thirds of Azerbaijan’s area is rich in oil and natural gas, thus making the country one of the major oil producers. The agricultural sector also plays a major role in the country’s economy as Azerbaijan has the largest agricultural basin in the region. To date, Azerbaijan’s government has launched a number of projects to help develop the country’s economy. Azerbaijan is set to match international standards and is now targeting global players to enter the market. The government also targets to develop the country’s tourism industry and improve its agricultural sector. It is expected that Azerbaijan’s economy will grow at an average of 3.5% in future years due to increasing natural gas exports. Supported by domestic demand, higher wages and better economic condition, the non-energy output is forecasted to also expand at around 3%.

Market Research Azerbaijan, is a marketing strategy advisory firm focused in the Asia-Pacific region including Azerbaijan. We have extensive experience in providing the right roadmaps and strategic plans to help our clients expand their businesses in Azerbaijan. The country is experiencing major economic transformation, and companies must adapt and transform their businesses accordingly. Our teams of expert consultants will provide market entry strategy, benchmark analysis and growth strategy needed to achieve a sustainable growth in the Azerbaijan market. We understand how dynamic and fast-changing this market is, so that we provide our clients with comprehensive and functional strategic plans to achieve a competitive advantage in the region.

Market Research Azerbaijan provides advisory services in sectors such as healthcare, manufacturing, energy, technology and automotive. We have more than 10 years of advisory experience and an extensive track of projects with a client repeat rate of 90%. Our expert consultants and executives advise clients with in-depth and comprehensive strategic plans to implement innovative and out-of-the box solutions. Market Research Azerbaijan will provide you innovative blueprints to expand your business in the region.

A Promising Economic Outlook for Azerbaijan

After a full year of contraction, Azerbaijan has recorded a positive growth of 2.1% in March 2021 through a rebound in the non-oil and gas sectors. Similarly, the oil and gas sectors are still in a contraction position by 6.9%, albeit an improvement from the 9.4% contraction in February.

Market Analysis Azerbaijan

The increasing trade in the Azerbaijani oil and gas sectors reflects a pick-up in crude oil and natural gas production. Moreover, the hydrocarbon sector has sharply declined by 7.3%, while the non-hydrocarbon sectors recorded a 5.9% growth, marking the first positive output this year.

The export activities have also grown significantly by 41% compared to the same period last year, supported mainly by oil and gas exports as the global prices recover. As with non-hydrocarbon exports, it expands by 28.7%, bringing the country's FDI to a surplus position of 14.4%.

SOFAZ as the Backbone of the Country

The State Oil Fund of Azerbaijan (SOFAZ) has recently sold FX valued at USD 509.9 million, representing a 28.2% mom increase, albeit still lower than the previous trade last year by 4%. SOFAZ recorded a positive operating balance with a slight decline of its asset by 2% or equivalent to USD 42.8 billion.

The decrease was due to the fall in gold prices and depreciation in its investment portfolio. However, despite the asset decline, the combined assets of SOFAZ and the country's central bank amounted to a near USD 50 billion, slightly more than the recorded 2020 GDP.

The state has increased its current spending up to 6.7% and capital spending by 18.8% y-o-y, recording a budget deficit of 346.9 million or 1.1% of GDP this quarter. However, the consolidated budget remains surplus due to SOFAZ's agile revenue as its backbone.

On the other hand, investments in the non-oil and gas sectors have grown by 5.8% in March, accounting for 7.4% growth this quarter despite the prolonged third wave of the COVID-19 outbreak in the country.

Adaptive COVID-19 Related Government Interventions

The country's COVID-19 cases increased in the first months of 2021, peaking its numbers in April.

Following the occurrence, the Azerbaijani government prompted some restriction protocols on some face-to-face economic activities. In response, the cases have recently moderated in May due to the gradual vaccination advances.

Azerbaijani government plans to gradually ease certain COVID-19 restrictions regarding international entries in response to the moderating cases.

The initial phase of opening the borders will enter into effect in early June 2021, allowing Russia and Turkey citizens to travel to the country by air without requiring special permission.

This applies if travelers have been fully vaccinated, and proven COVID-19 negative by the Polymerase Chain Reaction (PCR) test.

Azerbaijan has proven its strength in recovering its conditions despite not relying on its forefront commodity: oil and gas.

The active trade of non-oil and gas products has confirmed that the country can regain its welfare through accommodative government regulations and stabilizing global demands.


We are able to provide the following solutions:


  • Azerbaijan market research
  • Azerbaijan market survey
  • Azerbaijan qualitative research
  • Azerbaijan quantitative research
  • Azerbaijan market landscape
  • Market intelligence Azerbaijan
  • Azerbaijan M&A screening & evaluation
  • Azerbaijan medical equipment market research
  • Azerbaijan construction materials market research
  • Azerbaijan industrial market research
  • Azerbaijan competitive intelligence
  • Azerbaijan market sizing
  • Azerbaijan competitive landscape analysis
  • Azerbaijan competitive benchmarking
  • Azerbaijan competitor monitoring
  • Freelance market research Azerbaijan
  • Azerbaijan commercial due diligence
  • Azerbaijan hospital market research
  • Azerbaijan pricing study
  • Azerbaijan competitor sales network analysis
  • Azerbaijan B2B Market Research
  • Azerbaijan market attractiveness Analysis
  • Azerbaijan markets segmentation
  • Azerbaijan supply chain analysis
  • Growth strategy Azerbaijan
  • Azerbaijan telecom market research
  • Azerbaijan automotive market research
  • Azerbaijan market entry analysis
  • Azerbaijan customers analysis
  • Azerbaijan distribution channels analysis
  • Azerbaijan value chain analysis
  • Azerbaijan feasibility studies
  • Azerbaijan healthcare market research
  • Azerbaijan oil & gas market research
  • Azerbaijan chemical market research