The non-oil sector of the Republic of Azerbaijan’s economy: Prospects and directions for development within the framework of contemporary economic policy

Abstract

This study aimed to evaluate the critical variables and techniques that facilitate the sustainable development of Azerbaijan’s non-oil economic sector. The contribution of the non-oil sector to Azerbaijan’s economic development amid global transformations and economic concerns was examined. The focus was on diversifying the economy and reducing dependence on oil revenues, which is a major step towards sustainable economic growth. The study found that the development of sectors such as agriculture, industry, and services, contributes to the creation of new sources of income and ensures economic stability. The advancement of the non-oil sector is crucial for job creation, bolstering small and medium-sized firms, and enhancing the living conditions of the populace, particularly in rural and isolated regions. The study stressed that agriculture and tourism can benefit substantially from the introduction of innovative technologies and infrastructure modernisation. The non-oil sector’s contribution to the economy is evident in the enhancement of transport and logistics infrastructure, facilitating the increase of export potential. The development of quality services in areas such as healthcare, education, and tourism, also contributes to improving the social well-being of citizens and enhancing the country’s international competitiveness. The findings of the study showed that further development of the non-oil sector requires active investment, improvement of the business climate, and removal of administrative barriers. Diversification of the economy, development of innovative solutions, and infrastructure modernisation are the key factors contributing to Azerbaijan’s sustainable economic growth in the long term.