Azerbaijan seeks to nurture the science and technology industry and to move away from dependence on oil

Azerbaijan was attracting foreign investment through a series of reforms aimed at nurturing its small and growing scientific and technological industries and reducing its dependence on oil and gas exports. According to International Monetary Fund data, Azerbaijan had been heavily dependent on energy exports since its independence in 1991, and hydrocarbons accounted for about three quarters and 90 per cent of economic output during the oil boom. In comparison, the science and technology sector last year accounted for only 2.1 per cent of GDP. The Government plans to increase this proportion by turning the capital, Baku, into a centre for science, technology and innovation in the Caspian Sea. Legislation adopted in July had established a legal framework for investment instruments and was expected to attract foreign and venture capital. The risk investment market in Azerbaijan remains small, with only 22 start-ups raising $2.62 million in 2025。