12:38 - 5.01.2026

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January 5, Fineko/abc.az. The World Bank has announced the main challenges, relating to foreign direct investments in Azerbaijan.

ABC.AZ informs that the WB has found that the impact of FDIs in Azerbaijan on other sectors of the economy is limited.

According to bank's report, in resource-rich countries in Europe and the Central Asian region, including Azerbaijan, FDIs are mainly directed for the oil, gas and mining sectors. Although these investments contribute to the introduction of advanced mining technologies and increase government revenues, the enclave nature of the industries in question limits the transfer of technology and productivity to other sectors of the economy.

According to the WB, such an investment model has little effect on the formation of domestic supplier networks, as a result of which productivity growth in the non-oil sector is not ensured on a large scale. In this regard, Azerbaijan is listed in the report in the same group with Kazakhstan and Russia.

By comparison, in Central European countries (Hungary, Romania, and Slovakia), FDIs directed into the manufacturing sector have over time led to the emergence of networks of suppliers of domestic automotive and electronic components and generated a transfer effect to a stronger economy. In Southeastern Europe and the Western Balkans, these influences were uneven.