Internet usage has increased dramatically. From 2005 through 2010, Azerbaijan’s Internet market grew more than four-fold, and the rapid development of broadband connectivity resulted in an increase in the number of Internet users. As a result of this rapid development, currently 50% of the population of the country uses the Internet, 15% of which use broadband services.
With so many successes in just a few short years, Azerbaijan’s ICT landscape is clearly evolving at a rapid pace, making it one of the key areas to watch on the country’s continued path of development.
The development of Azerbaijan’s telecommunication infrastructure and the establishment of favorable regulatory frameworks over the last several years have created numerous opportunities within the IT sector. In 2010, IT production grew two-fold, while the IT service sector grew 20%. Software development increased approximately three-fold, and the manufacturing of computers and periphery devices doubled in 2010.
The Sky is the Limit: Azerbaijan Redefines its Position on the Modern Silk Road
All of these benchmarks are aimed at building an information society in Azerbaijan that provides access for every citizen. The applications of ICT developments are felt across society, unveiling opportunities for the benefit of education, student admissions, health care, insurance and pension systems, taxation, customs, administration of justice, elections and public security systems. In addition, Azerbaijan’s ICT objectives are not only crucial in addressing the country’s domestic needs, they also contribute to international and regional development. Understanding the role that ICT plays in international and regional development, Azerbaijan has set forth three major initiatives: One of these initiatives is aimed at establishing of Regional Innovative Zone that will promote the development of the IT market by providing a platform for a Regional Data Center, an Institute of Advanced Technologies and an International IT University. A second objective entails setting in place a “Trans-Eurasian Information Super Highway” by and among Eurasian countries. This highway will bridge two vast and highly developed ICT regions by linking countries of Western Europe with Southeast Asian countries of the Pacific basin. It is envisioned that this information highway will encompass some 20 countries altogether, including those lagging behind in their development. A third and extremely exciting objective is the launch the country’s first telecommunication satellite covering Continental Europe, the Middle East and Central Asia by 2012.
By Roncevert D. Almond The Wicks Group
Offshore oil rig on the Caspian Sea
Located at the nexus of Asia and Europe, Azerbaijan has served as a transcontinental economic and cultural link for centuries. Azerbaijan is the strategic Eurasian gateway linking West and East as well as North and South. In addition to bridging the major economies of Europe with China, transcontinental routes through Azerbaijan connect emerging markets in Eastern Europe with Southeast Asia and Russia with the Middle East. With two-thirds of the world’s population and over 50% of the world’s GNP, Eurasia represents an increasing share of the world’s economic power. Azerbaijan’s capital Baku is not only the economic and political center for Azerbaijan, the city is the commercial capital of the Caspian region. At the beginning of the 21st century, Azerbaijan is poised to re-define its position as the critical Eurasian transportation hub. The completion of the Baku–Tbilisi–Ceyhan (BTC) pipeline, dubbed as the “Deal of the Century,” has positioned Azerbaijan as the indispensable player for the transport of the Caspian Sea region’s oil to world markets.
2012 U.S.-AZERBAIJAN INVESTMENT GUIDE
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