Economist Criticizes Lack of Investment Climate in Azerbaijan

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Baku, October 2, 2025

Opposition figure and economist Natig Jafarli took to Facebook to criticize Azerbaijan’s poor standing in the latest Global Innovation Index 2025, noting that the country ranks last in the CIS for ICT services exports.

Jafarli contrasted Azerbaijan’s situation with developments in neighboring states. He pointed to Kazakhstan, where Telegram founder Pavel Durov announced at the Digital Bridge 2025 forum that the company will establish its Alem AI lab in Astana, investing hundreds of millions of dollars. He also cited Uzbekistan, which currently hosts 16,600 registered foreign investment projects. This year alone, Chinese firms invested $5.5 billion, while U.S. companies injected $4.2 billion. Out of those projects, 3,400 are in manufacturing, 1,200 in construction, 1,250 in ICT, 551 in logistics, and 404 in agriculture.

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By contrast, Jafarli said, Azerbaijan fails to attract meaningful investors.

“Instead, our national agenda is filled with corruption scandals involving businessmen with official connections, rising transport fares and penalties, and ongoing social problems,” he wrote.

He added that Azerbaijan’s economy is now at the bottom of the CIS in GDP growth and lags behind Georgia and Armenia in GDP per capita. “It is disheartening,” Jafarli noted.

“Once we dreamed of becoming like European countries. Now the wish is simply to have a business climate at least comparable to Kazakhstan, Uzbekistan, or Georgia.”

ICT Services Exports and Global Innovation Index 2025 Rankings

CountryICT Services Exports (% of Total Exports)Global Innovation Index 2025 Rank
Ukraine10.0%5
Armenia7.6%11
Georgia5.4%21
Belarus5.2%22
Lithuania3.8%31
Uzbekistan1.3%81
Kazakhstan0.9%90
Russia0.7%99
Kyrgyzstan0.5%105
Azerbaijan0.5%108

What the Numbers Show

The data highlights a stark gap: Azerbaijan ranks last in the CIS for ICT services exports, with only 0.5% of total exports coming from this sector. By contrast, Ukraine (10%) and Armenia (7.6%) have built strong positions, while even Georgia (5.4%) and Belarus (5.2%) far outperform Azerbaijan.

The rankings in the Global Innovation Index 2025 confirm this divide: Ukraine (5th) and Armenia (11th) are recognized as regional innovation leaders, while Azerbaijan is placed at 108th, trailing not only neighbors but also smaller markets like Kyrgyzstan.

This comparison underscores the concerns voiced by economists such as Natig Jafarli: Azerbaijan’s investment climate and digital economy remain underdeveloped, leaving the country behind in a field that defines future growth and competitiveness.

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