Azerbaijan has lately become one of the leading FDI investments in the region. This has not happened by chance. On the contrary, there are several things that Azerbaijan has done, to become more attractive to investors. Key among those is the provision of certain guarantees, meant to address common concerns that foreign investors tend to have. We all know, for instance, that foreign investors always have fears that they may encounter difficulties repatriating their profits. We also know that foreign investors always have fears that, at some point, the businesses they have invested in may be nationalized. To address those concerns, Azerbaijan offers the guarantees we made reference to. And once the investors get such guarantees, they are inclined to invest without fear.
The 4 guarantees that Azerbaijan offers to foreign investors include:
- The compensation guarantee: the Azerbaijani government guarantees foreign investors that it won’t carry out any unlawful acts against their businesses. But in the highly unlikely event that there are any unlawful acts by the Azerbaijani government agents against the foreign investors’ businesses, the government offers to give full and adequate compensation.
- The profit repatriation guarantee: the Azerbaijani government guarantees foreign investors that they will have an easy time repatriating their profits. It guarantees them that, as long as they will have paid the applicable taxes, they will have a free hand repatriating the rest of their profits to wherever they are based.
- The guarantee against nationalization: given the fact that Azerbaijan is a former communist state, there are those who may have concerns that their businesses could be nationalized. The Azerbaijani government offers a guarantee that this would never happen, under any circumstances.
- The legislation guarantee: investors often have concerns that the law may be changed in a manner than affects their businesses in an adverse way. The Azerbaijani government offers a guarantee that this wouldn’t happen. And even if there were legislative changes, the old legislation would continue to apply to the individual investor for the next 10 years.