Significant amendments to the legislation regulating the investment climate in Azerbaijan are currently under consideration. Operative Information Center-OMM reports that according to the draft law discussed during today's meeting of the Milli Majlis (National Assembly) Committee for Economic Policy, Industries, and Enterprising, a new mechanism for the state acquisition of investments is being established.
Under existing legislation, investments in Azerbaijan can only be acquired by the state in two specific instances: for state needs or through requisition (during natural disasters, epidemics, and other emergency situations). In both scenarios, investors are guaranteed compensation in accordance with Articles 13.3 and 13.4 of the law. The proposed amendment introduces a third ground for state acquisition, specifically targeting investments of strategic importance.
The primary objective of this legislative update is to safeguard the interests of the Azerbaijani state and its people, providing a legal framework to intervene in exceptional cases that may contradict national interests. The new draft law ensures that any such acquisition will follow standard legal procedures, mandating that fair compensation be paid to the affected investors. The entire process will be strictly regulated within the framework of Azerbaijan's national laws.
This move comes as Azerbaijan continues to modernize its legal framework to balance investor protections with national security and economic sovereignty. In recent years, the Republic of Azerbaijan has implemented various reforms to attract foreign direct investment, particularly in the non-oil sector and the liberated territories of Garabagh and East Zangazur. By clarifying the conditions under which the state may intervene in strategic assets, the government aims to provide greater transparency and legal predictability for both domestic and international stakeholders operating in the capital, Baku, and throughout the country.
