President of the Republic of Azerbaijan signed the Decree “On Improving Management in the field of State Support for Development of Entrepreneurship” on October 11, 2021. Under the Decree, “Azerbaijan Business Development Fund” (hereinafter – the Fund) was established under the Ministry of Economy on the basis of merger of “Entrepreneurship Development Fund of the Republic of Azerbaijan” and “Azerbaijan Investment Company” OJSC.
The mission of the newly established Fund is to support the development of non-oil sector of the economy and to provide incentives for activities in this area, as well as to provide financial support for the development of entrepreneurship in Azerbaijan.
In accordance with Decree, a Supervisory Board consisting of 9 members shall be established to exercise general management and control over the Fund’s activities. Five members of the board shall be appointed by the Ministry of Economy of Azerbaijan. The rest of the members shall be selected by the following government bodies of the Republic of Azerbaijan:
- the Central Bank;
- the Ministry of Finance;
- the Ministry of Labor and Social Protection of Population; and
- the State Tourism Agency.
Under the Decree, the mission of the Fund is to improve support mechanism for business development, create new production and processing enterprises based on innovative technologies in the non-oil sector, ensure the financing of export operations, accelerate investments in the real sector and expand access to financial resources of business units operating in the private sector. It is expected that the application of the new procedures will create opportunities for expansion of entrepreneurs’ access to new financial resources and non-oil production and exports, reduction of production expenses and product cost, creation of new production areas and wider use of the state support mechanisms by the private sector.
This article was prepared as general information by Baku Attorneys and Consultants, Azerbaijani law firm. BAC is a full service law firm based in Baku and it has a strong team of corporate attorneys, who can advise on all aspects of corporate law, registration of companies, mergers & acquisitions, corporate reorganizations, liquidation of legal entities. Please, feel free to reach us via the contact page.