Date:29/06/13

Production in Azerbaijan’s IT sector grows year by year

 
The Azerbaijani Government, along with the development of ICT infrastructure, gives a lot of attention to the production and application of information technologies. There are good business conditions and favorable investment climate in Azerbaijan for developing this sphere.  Serious steps have been taken in the republic towards the production of computers and electronic equipment. Over the past 5 years Azerbaijan’s IT sector has been expanded at roughly twice with the average annual growth rate of 17%. 

This is very high figure for ICT sector.   In 2012 the IT sector grew by 8.6% in comparison with the previous year. According to the Ministry of Communications and Information Technologies’ annual report, during the reporting period 54.8% growth was observed in the wholesale of electronic and telecommunication equipment and its parts, 14.2% growth was observed in the production of radioelements and 15.3%  growth – in the wholesale of computer peripheral equipment.

The production of computers and electronic equipment in Azerbaijan’s IT sector is growing year by year.  At present, the production of IT products accounts for 30.6% of  Azerbaijan’s ICT sector, and the share of service-trade operations in this sector makes 69.4%.  In 2008 these figures constituted 20.5% and 79.5% respectively. In spite of the dynamic growth of revenues generated by the IT sector, the share of this sector in the country’s ICT sector is still relatively small. Nevertheless, the ratio is slowly increasing with each year. Compared with 2011, the ratio increased from 8.5% to 9.0%.  Today, the IT industry is developing rapidly in Azerbaijan and the professional level of local companies is rising. Local IT companies, apart from local projects, are being involved in the implementation of projects in the South Caucasus and Central Asia. Computers and electronic equipment manufactured in Azerbaijan are being imported to regional markets.  As to the prospects for the development of the IT sphere, strengthening the export potential of the ICT sector and attracting new investments to this sector are the main components of our future plans.  

The main goal in this direction is to turn the republic into the leading exporter of information services in the region. The State Fund for Development of Information Technologies was created under the Ministry of Communications and Information Technologies (MCIT) at the President of the Republic of Azerbaijan’s order 2095 dated 15 March 2012. The fund was created with the aim of developing entrepreneurship in the ICT sphere, providing financial assistance to IT companies, attracting local and foreign investments to this sphere, introducing new technologies to the country’s economy, expanding research activities and implementing innovations in the ICT sphere. 

The work on creation of a legal and organizational base for the fund’s activity is nearing completion. As to the creation of IT zones in Azerbaijan,  High-Tech Park LLC was created in the republic at the President of the Republic of Azerbaijan’s order 736 dated 5 November 2012.

The main directions of High-Tech Park’s activity include creation of resource centers, development of small and medium-sized innovative business, increasing export capabilities, training of ICT specialists, conducting research activities in the fields of IT and telecommunication and development of high technologies.

The park will be provided with a necessary infrastructure, material and technical base and administrative mechanism. It will be built in the territory of Sumgait city. Construction of a high-tech park has already began in Azerbaijan according to the presidential order. The High-Technology Park will serve as a special regime zone in the country, which will significantly enhance the competitiveness of the ICT sector and the economy of the republic.     
 

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