Azerbaijan working to create system of benefits, privileges for local IT companies

Finance Materials 8 September 2022 17:25
Baku, Azerbaijan Trend News Agency
Azerbaijan working to create system of benefits, privileges for local IT companies

Work is underway in Azerbaijan to create a system of benefits and privileges for local IT companies, Adviser to the Head of the Innovation and Digital Development Agency under the Ministry of Digital Development and Transport Aghahuseyn Ahmadov told Trend.

According to Ahmadov, Azerbaijani startups register their companies in foreign jurisdictions due to several factors.

"First of all, this comes from the totality of benefits and privileges provided by a particular country. Companies registered in the US state of Delaware, or in the Cayman Islands and Singapore are more likely to attract US and European investments,” he said.

“If we consider the case of registering a company in Azerbaijan, then, having passed the first stage, the organization will be aimed at entering international markets. Accordingly, in order to enter the US market and attract US investments, it’s necessary to register the company in jurisdictions familiar to these investors,” the agency’s representative explained. “Given all the above, the Innovation Agency, together with other government agencies, is working to create benefits and privileges and create a favorable environment for foreign investors in Azerbaijan.”

“At the same time, the exit of a startup project outside the country where it was created may be due to the fact that the project cannot develop further, since the startup creators have already completely covered this market. We are also working in this direction by analyzing the market and tools for creating demand for technologies, in aerospace, oil and gas, financial and other areas," the agency’s representative said.

Ahmadov added that it’s planned to create the elements and conditions which will lead to an increase in the number of registered IT companies and foreign direct investments in Azerbaijan.