DUBLIN, May 24, 2022--(BUSINESS WIRE)--The "Azerbaijan Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026" report has been added to ResearchAndMarkets.com's offering.
The construction industry in Azerbaijan is expected to grow by 6.1% in 2022, owing to the continued restoration and reconstruction work in liberated territories, as well as the execution of major energy, transportation and housing infrastructure projects outlined in 2022.
This is in accordance with the 'Azerbaijan 2030: National Priorities on Socio-Economic Development' strategic plan, announced in 2021, which aims to increase the regional and global influence of Azerbaijan over the next decade by developing a sustainable framework for economic growth.
Through this, the government plans to harness the use of private capital in the development of new industries by enhancing cooperation between the state and the private sector. Over the medium and long terms, growth in the construction industry is likely to be driven by developments in non-oil sectors, as the government continues its plan to diversify the country's economy and reduce its dependency on oil and gas exports, which currently account for 95% of total export value.
According to government estimates, the country's economy is expected to expand by 3.9% in 2022, driven primarily by growth in the non-oil sector, which is expected to expand by 4.9%. The oil sector is expected to grow by just 1.8%. However, a resurgence in Coronavirus (COVID-19) cases remains a key downside risk to the construction industry's short-term prospects, as the country's vaccination rate remains below 50% of the population - COVID-19 cases in the country have surged since the beginning of 2022
Growth in the construction industry will be supported by investments outlined in the 2022 Budget, in which the government allocated AZN8 billion ($4.7 billion) for capital expenditures. This includes AZN2.2 billion ($1.3 billion) for the reconstruction and rehabilitation of cities and villages, AZN2.9 billion ($1.7 billion) for the construction and reconstruction of social and infrastructure projects and AZN942 million ($554 million) for the reconstruction of liberated territories.
The government also allocated AZN5.9 billion ($3.5 billion) for economic activities, AZN3.9 billion ($2.3 billion) for education, AZN1.8 billion ($1.1 billion) for healthcare and AZN261.4 million ($153.7 million) for housing and utilities under the 2022 Budget. In addition, the 2022 Budget also estimated that the total volume of fixed asset investments is expected to rise by 3.4% in real terms, to reach AZN18.5 billion ($10.9 billion) in 2022.
The publisher expects the construction industry to stabilize at 4.3% annual average growth between 2023 and 2026, supported by the development of energy infrastructure. The government expects to invest AZN24.7 billion ($14.5 billion) in the oil and gas sector between 2021-2024. In addition, it aims to increase the total share of renewable energy in the electricity mix to 30% by 2030.
Furthermore, the government plans to strengthen its non-oil sectors through Foreign Direct Investment (FDI) by increasing its share of non-oil FDI from 2.6% of GDP in 2017 to 4% by 2025.
Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in Azerbaijan, featuring details of key growth drivers
Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline
Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies
Assess market growth potential at a micro-level with over 600 time-series data forecasts
Understand the latest industry and market trends
Formulate and validate strategy using the publisher's critical and actionable insight
Assess business risks, including cost, regulatory and competitive pressures
Evaluate competitive risk and success factors
Key Topics Covered:
1 Construction Outlook
2 Construction Industry: At-a-Glance
3 Latest News and Developments
4 Project Analytics
5 Construction Market Data
6 Risk Profile
For more information about this report visit https://www.researchandmarkets.com/r/4t7f62
View source version on businesswire.com: https://www.businesswire.com/news/home/20220524005620/en/
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