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Azerbaijan rolls out reforms to attract foreign tech investment
The country’s tech sector rose to 2.1% of GDP last year from 1.9% in 2024 as officials seek to reduce costs by enabling investment deals in Azerbaijan rather than foreign jurisdictions.
Azerbaijan, long reliant on oil and gas exports, is seeking to draw foreign investment into a growing technology sector with new reforms aimed at attracting tech companies and venture capital, Reuters reports.
The government says legislation passed in July creates a legal framework for investment instruments designed to let startups and investors structure deals in Azerbaijan rather than setting up entities abroad, cutting costs and making later funding rounds easier.
Officials also plan to launch a fund combining local and international capital, though details are not yet finalized, according to Reuters, citing Deputy Digital Development Minister Rashad Hasanov.
Azerbaijan’s venture market remains small, Reuters notes, with 22 startups raising $2.62 million in 2025 and three venture funds operating in the country with total disclosed capital of about $11 million.