BAKU, Azerbaijan, March 5. The country's key
economic and financial foundations remain very strong, Azerbaijan’s
Minister of Economy Mikayil Jabbarov said, Trend reports.


Speaking during a forum in Baku titled “Looking to the Future in
the Tax System: New Governance Model and Data-Driven Decisions,”
Jabbarov stated that 2025 was a notable year in terms of
strengthening Azerbaijan’s international standing.


“Progress in the peace agenda has opened significant prospects
for economic development for our country and the region. Strategic
partnership documents signed with global economic partners further
enhance Azerbaijan’s growing geoeconomic role. These partnerships
create new opportunities for deeper integration into global value
chains in areas such as investment, trade, energy, digital
transformation, artificial intelligence, high technologies, and
other sectors,” the minister said.


Jabbarov noted that the diversification of the economy forms the
basis of the country’s strategic objectives and that the non-oil
and gas sector has already become the main driver of economic
growth.


“To see the broader picture, let us briefly look at the past
five years. Between 2021 and 2025, real growth of 5.9% on average
annually in the non-oil and gas sector’s gross domestic product
(GDP) became the main source of economic expansion,” he stated.


The minister emphasized that the private sector plays a
significant role in economic diversification and continues to
receive active state support. In recent years, a large share of
government support to the private sector has consisted of tax and
customs incentives.







“This strategic approach has produced positive results in
significant qualitative and structural changes in the country’s
economy, as well as in the increasing share of the private sector
in tax revenues. Last year, revenues from the non-oil and gas
private sector reached 76% of total revenues from the non-oil and
gas sector,” he said.


Jabbarov also noted that in 2025, investments in fixed capital
directed to the non-oil and gas private sector increased by 11.1%,
while investments in fixed capital from foreign sources grew by
24%.


“In the non-oil and gas industry, investments increased by up to
26%. Between 2021 and 2025, value added in this sector grew on
average by 8% annually. As a result of these factors, the share of
the non-oil and gas sector in GDP increased from 58.3% in 2018 to
71.5% in 2025.


In 2025, tax revenues accounted for 12.7% of GDP, while the
share of tax revenues from the non-oil and gas sector in non-oil
GDP amounted to 13%, representing increases of 3.4 and 2.4
percentage points, respectively, compared to 2018. Compared to
2018, the share of tax revenues from the private segment of the
non-oil and gas sector in GDP increased by 2.2 percentage points,
reaching 9.9% in 2025,” the minister added.


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