SAFE HANDS
TBY talks to Arzu Hajiyeva, Partner of Tax & Law Department at Ernst & Young, on the role the firm plays in Azerbaijan and the significance of the country.
BIOGRAPHY
Arzu Hajiyeva studied international law at Baku State University. She obtained her LL.M degree from the University of Connecticut in the US with a specialization in tax and also studied for a master’s of laws at Baku State University with a specialization in international law. She has professional experience in tax planning, corporate and individual tax compliance, customs law, banking and currency regulation. She joined the Baku office of Ernst & Young Azerbaijan Branch in 2000. She is currently Partner of Tax & Law Department at Ernst & Young.Ernst & Young participates in many different conferences and events in Azerbaijan and was the consulting partner at the first Azerbaijan sustainable development and CSR conference. How does participating in these events contribute to your mission in Azerbaijan?
Participation in conferences and events is an effective way to strengthen our presence and voice as a leader, expand our network with clients and stakeholders, and build awareness of our company. Moreover, in times of legal and institutional reforms, active participation in such events provides an opportunity to build an open dialogue between entrepreneurs and state authorities to discuss challenges faced by entrepreneurs, to share valuable experience, and contribute to Azerbaijan's attractiveness for investors. The EY Tax & Law Department has also benefitted from such opportunities, and we not only participate in conferences as sponsors and speakers but also hold our own events. EY Azerbaijan organizes annual Tax & Legal Update seminars for clients and, by virtue of this, provides insights into tax and legal updates and their practical implementation in Azerbaijan. Following current market and legal trends and updating clients on issues crucial for their businesses boosts our close ties with them and contributes to our mission of building a better working world. Taking into account an increasing interest in sustainability in Azerbaijan, EY considered the first Sustainability and CSR conference in 2015 as an extremely important initiative to familiarize the business society with the concept of sustainability and integrate the latter into the management of companies. EY was a consulting partner for the event and had a major role in building the conference's content. The conference covered major aspects of sustainability, such as economic and environmental sustainability, the role of education in sustainability, green economy, and so on. We believe that in the near future, business society in Azerbaijan will realize the importance of integrating sustainability into business strategy and it will play a necessary role in the formation of a sustainable society in the country.
What is the regional significance of Azerbaijan for Ernst & Young?
EY has been present in Azerbaijan for more than 20 years, successfully blending the best global practices with local expertise, sharing our knowledge through rendering high-quality services to our clients, and supporting a great number of initiatives. Azerbaijan is a vast emerging market within the CIS and retains its position as one of the highest-ranked countries among the republics of the former Soviet Union according to the World Economic Forum's Global Competitiveness Index. There is always room for improvement and Azerbaijan is steadily moving along the path of reform, creating new growth opportunities for companies working in the country. As an emerging market, Azerbaijan does not only have significant potential for rapid economic growth, but also implies a higher return potential and is expected to expand faster than mature markets. Relying on all of these growth opportunities, EY is determined to focus further on the development of its practice in the country, to invest in the enhancement and perfection of its range of services, and to contribute to the community in line with its global mission and policy.
What is your outlook on the development of the non-oil sector?
Azerbaijan is one of the most attractive locations for foreign investments in the region. Out of the $20 billion invested last year in Azerbaijan, half were foreign investments. At an early stage of Azerbaijan's independence, foreign investments were largely in the oil and gas sector, which is still the driving force generating the most interest from foreign investors based on statistical indicators. Today, the volume of foreign investments in the non-oil sector is also growing due to the government's latest legislative reforms. Foreign direct investment in the non-oil sector is mainly focused on construction, services, transport, telecoms, and manufacturing.
SAFE HANDS
TABLE OF CONTENTS
Year In Review
Good Times Ahead
<strong></strong><strong>In a year dominated by the overarching theme of low hydrocarbons prices, Azerbaijan showed resilience and verve in putting in place bold measures both to counter the slump in energy prices and put its economy on a surer footing.</strong>
read articleReview: Diplomacy
Operation Outreach
In 2015, Azerbaijan's military budget increased by a notable 27%, to $4.8 billion, or 17.9% of the government's total budget for the year. The first Azerbaijan Defence Exhibition (ADEX 2014), drew over 200 companies from 34 countries, including Russia and the US.
read articleInterview
Rufat Mammadov, President, Azerbaijan Export and Investment Promotion Foundation (AZPROMO)
TBY talks to Rufat Mammadov, President of the Azerbaijan Export and Investment Promotion Foundation (AZPROMO), on large-scale events and their ability to attract FDI and the potential Iran may hold.
read articleReview: Banking
More Interest
In a sector faced with relatively flat growth for 2015-16, new opportunities are still there aplenty, led by the nascent Islamic banking sector, e-banking, and microfinance initiatives. Together, these areas should make banking more diversified and less reliant on a buoyant energy sector for its capital inlay.
read articleReview: Capital Markets
Taking Stock
As Azerbaijan grapples with the knock-on effects of low hydrocarbon prices, the Baku Stock Exchange (BSE) finds itself at the center of the country's efforts to stave off a budget deficit this year. In January, the government announced plans to sell $500 million worth of bonds on the BSE.
read articleInterview
Khanlar Fatiyev, , Chairman of the Supervisory Board, Ganja Automobile Plant Production Association
TBY talks to Khanlar Fatiyev, Chairman of the Supervisory Board of the Ganja Automobile Plant Production Association, on the role of the plant in driving growth in the non-oil sector.
read articleReview: Agriculture
Lots More
Farms across the country are pursuing a policy of increased yields for year-round fruit and in the wheat harvest to stave off an over-reliance on imports. With carefully targeted increases in exports, better routes to port and to market, and greater sophistication of agricultural facilities, farming could soon be the morning star of Azerbaijan's diversified economy.
read articleReview: Education
Baku to School
Azerbaijan's culture has always harbored a deep respect for educational values. This is embodied in the country's Azerbaijan 2020 mission statement, which seeks to raise standards across the sector and introduce ICT as a standard part of the learning experience at all levels.
read articleInterview
Elkhan Mammadov,, Secretary General, Association of Football Federations of Azerbaijan (AFFA)
TBY talks to Elkhan Mammadov, Secretary General of the Association of Football Federations of Azerbaijan (AFFA), on the experience Azerbaijan is gaining in hosting international events.
read article