Page 72 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.77, # 2, 2020, pp. 70-77

simply trying to develop the non-oil sector rapidly, and we are achieving this”
(President.az, 2019).

DIVERSIFICATION ISSUES OF THE NON-OIL EXPORT SECTOR IN
AZERBAIJAN

The “Decree of the President of the Republic of Azerbaijan on the Approval of
Strategic Roadmaps for the National Economy and Key Sectors of the Economy” in
2016 defines a strategic road map for the development of key sectors of the national
economy and development perspective for each sector. The document states that
"sustainable and competitive development of the non-oil sector in the Republic of
Azerbaijan is a priority of the state's economic policy" (2016). According to the
document, the main sectors of the non-oil sector include oil and gas industry,
agricultural production and manufacturing, production of consumer goods at the
level of small and medium enterprises, heavy industry and engineering, tourism
industry, logistics and trade development, telecommunications and information
technology as well as the development of regional transport corridors.

At present, the country's strategic documents show that the development of the non-
oil sector is one of the most important priorities for the country's economy.
Furthermore, an analysis of the structure of the economy shows that the Azerbaijani
economy consists of two main sectors. The first is the oil sector and the second is the
non-oil sector. Although the non-oil sector covers many sectors, the Azerbaijani
government's economic diversification policy identifies tourism, agricultural
development, telecommunications and information technology development, and the
development of international transport corridors as important areas for the
Azerbaijani government. At the same time, starting from 2018, the development of
small and medium-sized businesses, increasing their export and competitive
potential is one of the important goals for Azerbaijan.

Therefore, the establishment of a diverse range of agencies under various ministries to
support startups, small, and medium-sized businesses has been approved. The
establishment of incubation centers for business development and the promotion of
entrepreneurial skills remain one of the most important areas for the Azerbaijani
government. Despite all the work done, increasing the export potential of Azerbaijan's
non-oil sector remains a problem. The country's main revenues including GDP are being
formed with the contributions of oil revenues. Although there are no accurate statistical
on what percentage of the country's national income comes from oil, figures from
various international organizations and portals suggest that the figure varies between 90
and 95%. Export.gov shows that in 2019, 44% of Azerbaijan's GDP will be provided by

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