Formation of investment climate in the oil and gas industry of Azerbaijan and its impact on the development of the non-oil sector

Abstract

After the independence of the Republic of Azerbaijan, there is a great need to create a favorable investment climate for attracting foreign capital to the national economy. From this point of view, due to its special relevance in modern economic conditions, the legislative framework for the formation of a favorable investment climate in the oil and gas industry was studied and its impact on the development of the non-oil sector was assessed. To further clarify the subject of the study, special attention was paid to the frequent changes in tax legislation, which seriously hinder the attraction of investments in the oil and gas industry. As a result of successful reforms, changes have taken place in the management structure of the country's oil and gas industry aimed at creating a more accurate and perfect system of state regulation of operations in the use of subsoil. As a result, the contradictions in the issues of authority and the negative factors that led to the inefficiency of the management system as a whole were eliminated, and many positive developments were observed. The article shows the directions of directing the revenues from the oil and gas industry to the development of the non-oil sector with long-term forecasts in the conditions of formation of a favorable investment climate in our country. Keywords: oil and gas industry; investment climate; law; non-oil sector; development.