Azerbaijan Facts and Figures

Area: 86,600 sq km
Population: 8.5 million (2006)
Capital City: Baku (population: 2.0 million)
People: Predominantly Turkic Azeri, Russian (8%), Armenian (6% mostly fled as a result of the conflict in Nagorno Karabakh)
Languages: Azeri 89%, Russian 3%, Armenian 2%, other 6%
Religion(s): Muslim 93.4%, Russian Orthodox 2.5%, Armenian Orthodox 2.3%, other 1.8%
Currency: Manat
Major political parties: New Azerbaijan Party, Azerbaijan Democratic Party, Popular Front Party (Reformists), Musavat, Liberal Party and Azerbaijan National Independence Party.
Government: Republic
Head of State: President Ilham Aliev
Prime Minister/Premier: Artur Rasizade
Foreign Minister: Elmar Mamadyarov
Membership of international groupings/organisations: BSEC, CCC, CE, CIS, EAPC, EBRD, ECE, ECO, ESCAP, FAO, IBRD, ICAO, ICRM, IDA, IDB, IFAD, IFC, IFRCS, ILO, IMF, IMO, Intelsat, Interpol, IOC, ISO (correspondent), ITU, NAM (observer), OIC, OPCW, OSCE, PFP, UN, UNCTAD, UNESCO, UNIDO, UPU, WFTU, WHO, WIPO, WMO, WTO (observer)

Geography

Azerbaijan is the largest of the three South Caucasus states, bounded by Russia, Georgia, Armenia, Iran and the Caspian Sea. There is also a short border between Turkey and the Nakhichevan Autonomous Republic (pop. 295,000), which is separated from the bulk of Azerbaijan by southern Armenia. Under Russo-Turkish treaty arrangements Nakhichevan's sovereignty cannot be transferred from Azerbaijan.

Location: South-western Asia, bordering the Caspian Sea, between Iran and Russia
Geographic co-ordinates: 40 30 N, 47 30 E
Area:
total: 86,600 sq km
land: 86,100 sq km
water: 500 sq km
note: includes the exclave of Nakhichevan Autonomous Republic and the Nagorno-Karabakh region; the region's autonomy was abolished by Azerbaijani Supreme Soviet on 26 November 1991
Land boundaries:
total: 2,013 km
border countries: Armenia (with Azerbaijan-proper) 566km, Armenia (with Azerbaijan-Nakhichevan exclave) 221km, Georgia 322km, Iran (with Azerbaijan-proper) 432km, Iran (with Azerbaijan-Nakhichevan exclave) 179km, Russia 284km, Turkey 9km
Coastline: 0 km (landlocked)
note: Azerbaijan borders the Caspian Sea (800 km, est.)
Maritime claims: none (landlocked)
Climate: dry, semiarid steppe
Terrain: large, flat Kur-Araz Ovaligi (Kura-Araks Lowland) (much of it below sea level) with Great Caucasus Mountains to the north, Qarabag Yaylasi (Karabakh Upland) in west; Baku lies on Abseron Yasaqligi (Apsheron Peninsula) that juts into Caspian Sea
Elevation extremes:
lowest point: Caspian Sea -28m
highest point: Bazarduzu Dagi 4,485m
Natural resources: petroleum, natural gas, iron ore, non-ferrous metals, alumina
Land use:
arable land: 18%
permanent crops: 5%
permanent pastures: 25%
forests and woodland: 11%
other: 41% (1993 est.)
Irrigated land: 10,000 sq km (1993 est.)
Natural hazards: droughts; some lowland areas threatened by rising levels of the Caspian Sea.

ECONOMY

GDP: US$19.9bn (2006)
GDP Per capita: US$1,041 (2005)
Annual Growth: 34.5% (2006), 41.7% 1st Quarter 2007
Net Assets of State Oil Fund 2008 US$6762.1 million  (Source State Oil Fund).
Inflation: 8.3% (2006). 16.7% 1st Quarter 2007
Exchange Rate: 0.50 Manat (at 28 August 2008)
Exports
Imports

Italy 31.1% UK 13.9%
Czech Republic 14.5% Russia 13.1%
Germany 9.4% Turkey 11.5%
Total Exports $6,117bn (2005) Total Imports $4,656bn (2004)

Azerbaijan's economy had suffered large shocks from the disintegration of the former Soviet Union, which disrupted trade routes and markets, and the drain on resources caused by the N-K war effort. However buoyancy in the oil market has eased the pressure. 2006 showed record growth in the economy. Oil remains the country’s main export commodity. However, consumer price inflation rose sharply in the first quarter of 2007 and the currency is appreciating in real terms.

Growth is being fuelled by investment in Azerbaijani oil reserves. The State Oil Fund of Azerbaijan grew from US$692 million on 1 January 2003 to US$6762.1 million by 1 July 2008. GDP grew by 32.5% in 2006, the highest growth rate of any country in the world. Inflation over the same period has continued to increase significantly and is currently running at 16.7%. Food and energy prices are running at a higher rate of inflation.

Top exports from the UK
1. Natural or cultured pearls/precious semi precious stones/metals £194,424,788
2. Articles of Iron or Steel £37,733,125
3. Tools, implements, cutlery of base metal £8,183,876
(2004)

Top imports to the UK
1. Natural or cultured pearls/precious semi precious stones/metals £181,792,553
2. Articles of Iron or Steel £7,395,833
3. Plastics and Plastic Products £115,658

Azerbaijan is an important energy partner for the UK. Baku marks the departure point for the Baku-Tblisi-Ceyhan (BTC) pipeline project, and together with the offshore Azeri-Chirag-Guneshli oil field and the Shah Deniz gas field and associated South Caucasus Pipeline, these projects represent BP’s largest overseas investment.

There are over 100 British companies active in Azerbaijan. Investment opportunities for those operating outside of the oil and gas sector are very limited. Market reform in Azerbaijan has been sluggish. While much agricultural land and Small to Medium Enterprise’s have been privatised and trade policy liberated, state control persists widely. Concerns over pricing controls continue on natural monopolies with arbitary tax, differential excise duties, and customs administration for both national and imported goods. Heavy regulation persists with quotas, for example on alcoholic beverages and cigarette products  These, together with a weak legal environment constrain business activity.