IDEA: Investing in the Digital Economy of Azerbaijan

The report identifies key barriers to digital FDI in Azerbaijan, including a nascent start-up ecosystem, a digital skills gap, and outdated cloud infrastructure. It recommends prioritizing three action areas: supporting the regional expansion of start-ups, scaling the Smart Industry Readiness Index (SIRI) for digital transformation in firms, and implementing an investment incentives calculator. The analysis emphasizes the need for improved international connectivity, harmonized cybersecurity regulations, and the adoption of InvesTech tools like big data analytics and cloud computing to facilitate the investment life cycle.

• Azerbaijan's digital infrastructure faces challenges with intermittent connectivity and suboptimal internet speeds, which hinder the efficiency of exporting IT services. The country ranked 116th among 181 countries in 2023 for fixed broadband internet speed.
• The digital start-up ecosystem is considered to be in its nascent stages, with investors finding limited options for local start-ups that possess innovative or competitive ideas.
• There is a significant gap in advanced digital skills compared to regional peers, partly due to a skills mismatch where personnel lack technical skills and a 'brain drain' of ICT professionals to other countries.
• Regulatory restrictions and a lack of trust in e-payments hinder the development of e-commerce; for instance, PayPal allows payments to others in Azerbaijan but not the receipt of payments.
• Intellectual property (IP) protection is inadequately enforced, with reports of widespread unlicensed software use and a lack of ombudspersons to resolve disputes.
• The most critical InvesTech technologies for investment in Azerbaijan are digital payments, big data analytics, and cloud computing, though adoption varies by sector; the telecom/media sector has fully adopted all three.
• There is a lack of professional, open, and reliable data platforms for market research in Azerbaijan, which may be due to government authorities acting as both regulators and operators.
• The report prioritizes three concrete action areas for implementation: supporting regional expansion of start-ups, using the Smart Industry Readiness Index (SIRI) for firm digital transformation, and creating an investment incentives calculator.

APA

World Economic Forum (2024). IDEA: Investing in the Digital Economy of Azerbaijan. https://www3.weforum.org/docs/WEF_IDEA_Investing_in_the_Digital_Economy_of_Azerbaijan_2024.pdf

Chicago

World Economic Forum. IDEA: Investing in the Digital Economy of Azerbaijan. 2024. https://www3.weforum.org/docs/WEF_IDEA_Investing_in_the_Digital_Economy_of_Azerbaijan_2024.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=IDEA: Investing in the Digital Economy of Azerbaijan |date=June 2024 |url=https://www3.weforum.org/docs/WEF_IDEA_Investing_in_the_Digital_Economy_of_Azerbaijan_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2024idea, author = {{World Economic Forum}}, title = {{IDEA: Investing in the Digital Economy of Azerbaijan}}, institution = {World Economic Forum}, year = {2024}, month = jun, url = {https://www3.weforum.org/docs/WEF_IDEA_Investing_in_the_Digital_Economy_of_Azerbaijan_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }