Ulvi Aslanov - Diversifying the Economy and Investing in the Future - Startup AddVenture Middle East 2015

1. ULVI ASLANOV
HIGHT TECH PARK AZERBAIJAN
DIVERSIFYING THE ECONOMY
AND INVESTING IN THE FUTURE

2. 1© 2014 – High Tech Park Azerbaijan
Building(the(Engine(of((
High(Tech(Transformation((
in(the(Caucasus(and(Central(Asia!
!
Diversifying(the(Economy(and(
Investing(in(the(Future(
February(2015(

3. 2© 2014 – High Tech Park Azerbaijan
Azerbaijan*is*becoming**
the$high$tech$hub**
of*the*Caucasus*and*Central*Asia*
*
High$Tech$Park$Azerbaijan**
is*being*built*as**
the*business*address*of*this*hub*

4. 3© 2014 – High Tech Park Azerbaijan
Azerbaijan*as*the*Regional*High3Tech*Hub*
High%Tech%Park%Azerbaijan%
Investment%op9ons%

5. 4© 2014 – High Tech Park Azerbaijan
Azerbaijan*provides*the*most*beneficial*point*of*access*to*the*Caucasian*and*
Central*Asian*high*technology*markets*
Location Internet Penetration Linguistic Benefits Education
Economic
Transformation
• The%central%loca9on%of%
Azerbaijan’s%capital%
Baku%is%the%ideal%hub%
for%the%Caucasus%and%
Central%Asia%%
• Baku%also%provides%
direct%access%to%
Europe,%the%CIS,%
Russia,%and%the%Middle%
East%with%direct%flights%
from%the%new%Baku%
airport%
• Azerbaijan%has%the%
highest%Internet%
penetra9on%in%the%
Caucasus%and%Central%
Asia%with%>70%%
Internet%penetra9on%
• Azerbaijan%con9nues%
to%invest%heavily%in%its%
telecom%infrastructure%
with%planned%
investment%of%
EUR500m%in%fiberPtoP
home%in%within%3%years%
• Azerbaijanis%are%highly%
mul9lingual%commonly%
speaking%Azerbaijani,%
Turkish,%Russian%and%
English%
• A%significant%number%
of%Azerbaijanis%are%
fluent%in%Russian%and%
English%
• Many%Azerbaijanis%
have%lived%and%studied%
in%Turkey,%Russia,%and%
other%CIS%countries%
• Azerbaijanis%have%the%
8th%highest%literacy%
rate%in%the%world%with%
a%highly%developed%
educa9on%system%
• The%government%has%
invested%heavily%in%
recent%years%on%quality%
academic%ins9tu9ons%
and%programs%aimed%
at%developing%
technical%skills%
• The%economy%of%
Azerbaijan%is%projected%
to%maintain%its%strong%
growth%in%the%coming%
years%%
• The%ICT%sector%in%
par9cular%is%projected%
to%cons9tute%a%
significant%por9on%of%
GDP%by%2020%
Azerbaijan’s*benefits*as*a*high*tech*business*
hub*for*the*Caucasus*and*Central*Asia*

6. 5© 2014 – High Tech Park Azerbaijan
Iran*Iraq*
Ukraine*
Egypt*
Turkey*
Turkmenistan*
UAE*
Kyrgyzstan*
Kazakhstan*
Romania*
Belarus*
Georgia*
Turkey*
Ukraine*
Russia*
Turkmenistan*
Uzbekistan*
Kyrgyzstan*
Iran*
Tajikistan*
Russia*
Moldova*
Russia*
Azerbaijan*is*uniquely*located*to*provide*the*best*access*to*the*Caucasian*and*
Central*Asian*markets*
A*Natural*Business*Hub*for*the*
Caucasus*&*Central*Asia*
• Azerbaijan%is%uniquely%located%to%
become%the%natural%hub%for%
businesses%growing%in%the%Caucasus%
and%Central%Asia%regions%
Core*Coverage*(Caucasus*&*Central*
Asia)*
Strategic*Synergy*(Turkey,*Russia,*
Ukraine,*Belarus,*Romania,*
Moldova)*
PotenPal*business*coverage*from*
Baku:*

7. 6© 2014 – High Tech Park Azerbaijan
PopulaPon*in*Central*Asia*and*Transcaucasia*200832012*
Millions%of%Ci9zens%
Source:%World%Bank,%Commit%analysis%
In*2012,*the*aggregate*populaPon*of*the*Caucasus*and*Central*Asia,*to*which*Baku*
provides*the*easiest*access,*was*about*80*million*people**
Kyrgyzstan%
73.6%
5.3%
4.4%
75.0%
2011*
5.4% 5.4%
5.0%
7.3%
4.4%
5.0%
27.8%27.3%
15.7%
76.5%
Uzbekistan%
2012*
28.6%
16.3%16.1%
8.8%
4.5%
7.4%
Tajikistan%
Azerbaijan%
2%*
Kazakhstan%
9.1%
7.6%
8.9%
5.2%
8.0%
5.1%
9.3%
29.8%
4.5%
5.5%4.9%
16.6%
79.1%78.0%
16.8%
4.5%
9.2%
29.3%
5.6%
2008* 2009* 2010*
Georgia%
Turkmenistan%
7.8%
Regional*populaPon*is*
booming*above*global*
average*at*2%*increase*
per*year.**In*
comparison,*European*
populaPon*is*
increasing*at*only*0.2%*
per*year.*
*
100m*
The*populaPon*of*the*
region*of*interest*
within*10*years%

8. 7© 2014 – High Tech Park Azerbaijan
Internet*PenetraPon,*2012*
Percentage%
Internet*usage*across*the*Caucasus*and*Central*Asia*has*been*booming*at*39%*
CAGR*with*Azerbaijan*leading*the*growth*at*43%*CAGR*
71
72
7
70
15
22
37
37
39
53
Kyrgyzstan%
Uzbekistan%
Tajikistan%
Georgia%
Kazakhstan%
Turkmenistan%
Azerbaijan*
Region*
Average*
OECD%
Average%
USA%
Internet*Annual*Growth,*200832012*
Percentage%
8%%
42%%
43%%
13%%
42%%
39%%
48%%
39%%
2%%
3%%
• Azerbaijan*leads*the*Caucasus*
and*Central*Asia*region*in*
Internet*penetraPon*
• Azerbaijan*reached*this*level*of*
Internet*penetraPon*with*
explosive*growth*with*43%*
annual*growth*rate*for*the*
period*200832012*
• Regional*Internet*growth*is*very*
strong*at*just*below*40%*annual*
growth*rate*
• Azerbaijan*Internet*penetraPon*
matches*that*of*OECD*and*USA*
Source:%ITU,%Azerbaijan%Ministry%of%Communica9ons%and%High%Technologies,%AZ%Stats%

9. 8© 2014 – High Tech Park Azerbaijan
Azerbaijan*has*grown*tremendously*in*the*last*decade*
Azerbaijan*has*a*dynamic*economy*with*explosive*growth$
• Economy%has%grown%
~4x%since%2003%
• GDP%per%capita%has%
tripled%
• Record%breaking%
growth%2005P7%
Highest%
global%growth%
at%35%%
2nd%highest%
global%growth%
at%26%%
GDP,*PPP*USD*B*
94.190.588.7
83.6
75.8
67.2
52.3
37.7
28.925.6
2007%2006% 2009%2008%2003% 2010%
+16%*
CAGR*
2012%2005%2004% 2011%

10. 9© 2014 – High Tech Park Azerbaijan
Projected*Azerbaijan*Economic*Output*by*Sector*
USD%B%
We*predict*the*enPre*economy*of*Azerbaijan*to*grow*steadily*through*2020*above*
the*global*average*with*oil*playing*a*less*prominent*role*
8.4 10.1
32.4 35.3 38.3 41.4 44.7 48.2 51.7 55.5
31.4
31.4
31.4
31.4
31.4
31.4
31.4
31.4
9.69.28.88.07.67.3
83.8%
2.6%
2015%
80.1%
2.4%
2014%
76.5%
2.2%
2013%
73.1%
2.0%
+4.7%*
NonPOil,%
NonPICT%
ICT%
Oil%
2020%
100.6%
3.7%
2019%
96.1%
3.4%
2018%
91.8%
3.1%
2017%
87.7%
2.8%
2016%
Taxes%
CAGR*
0.0%*
7.8%*
4.7%*
9.4%*
7.9%*
Source:%Commit%Analysis;%AZ%Government%sta9s9cs%

11. 10© 2014 – High Tech Park Azerbaijan
ICT*Sector*Annual*Output*
USD%M%
ICT*sector*is*expected*to*grow*at*~2x*GDP*and*become*~4%*of*the*Azerbaijani*economy*by*
2020;*the*Knowledge*Economy*will*contribute*more*than*a*quarter*of*the*economic*output*
4,760
4,353
3,980
3,640
3,328
3,043
2,783
2,545
+9.4%*
2020%2019%2018%2017%2016%2015%2014%2013%
Projected*AZ*GDP*by*Share,*2020*
%%of%GDP%
Source:%Commit%Analysis;%AZ%Government%sta9s9cs%
7.0%7.0%Taxes%
Non%Oil,%
NonPICT%
NonPICT%
Knowledge%Economy%
ICT%
Oil%
2020%Goal%
39.9%%
22.8%%
3.7%%
26.5%%
2020%
62.8%%
3.7%%
26.5%%

12. 11© 2014 – High Tech Park Azerbaijan
Average*wages*in*Azerbaijan*for*ICT*Sector**
USD%
Average*wages*in*Azerbaijan*is*42%*lower*than*Russia,*wage*increase*in*ICT*sector*
is*almost*the*same*as*Consumer*Price*Index*increase*
Source:%The%State%Sta9s9cal%Commifee%of%Azerbaijan,%Central%Bank%of%Azerbaijan%
861
792
735
677
633
593
2012%2008%
CAGR*+8%*
2011% 2013%2010%2009%
For%the%same%period,%increase%of;%
GDP*per*Capita*(current,*USD)*7%*
Annual*Consumer*Price*Index*average*6.6%*
**
Average*wages*in*CIS*Countries*
USD%
147
236
299
367
409
542564
717
936
Turkmen%
istan%
Kyrgyz%
stan%
Moldova%Ukraine%Kazakhstan% Tajik%
istan%
Belarus% Azerbaijan*Russia%

13. 12© 2014 – High Tech Park Azerbaijan
The$World$Economic$Forum$has$released$its$Global$
Compe??veness$Report$for$2014$G$2015$on$September$3,$2014$
• Macroeconomic*environment*
–*9th**
• Labor*market*efficiency*–*
33th*
Azerbaijan*leading*most*EU*members*in*compePPveness*with*its*38th*posiPon*
worldwide,*according*to*the*Global*CompePPveness*Report*2014*
Azerbaijan*conPnues*to*move*up*
in*the*list*and*placed*in*38th*
posiPon*out*of*144*economies*
201332014*rank:*39*
201232013*rank:*46*
201132012*rank:*55*
Source:%Commit%Analysis;%World%Economic%Forum,%Global%Compe99veness%Report%2014P2015%
• Spain *35th**
• Czech*Rep. *37th**
• Azerbaijan *38*th*
• Poland *43rd**
• Turkey *45th*
• Italy *49th**
• Kazakhstan *50th**
• Russian*Fed.*53rd**
• Bulgaria *54th**
• Hungary *60th**
• Georgia *69th**
• Ukraine *76th**
Ranks*from*Global*CompePPveness*Report*201432015*
Azerbaijan’s*best*ranks*from*
12*factors*

14. 13© 2014 – High Tech Park Azerbaijan
World*Bank*Doing*Business*Report*
Azerbaijan$Government$is$reforming$business$regula?ons$
aggressively$to$become$more$business$friendly$
World*Bank*Ease*of*Doing*Business*
Ranking*–*2013,*worldwide*
• Star?ng$a$business: $10th$$
• Registering$Property: $13th$$
• Protec?ng$Investors: $22nd$$
• Enforcing$Contracts: $28th$$
“Top*reformer*in*200738,*
with*improvements*on*7*
out*of*10*indicators*of*
regulatory*reform”*
Azerbaijan*Government*has*fostered*the*economic*growth*with*numerous*
business*friendly*reforms*
“Azerbaijan’s*extensive*reforms*
moved*it*far*up*the*ranks,*from*
97*to*33*in*the*overall*ease*of*
doing*business32009”*
Source:%Commit%Analysis;%World%Bank%Doing%Business%Report%2013%

15. 14© 2014 – High Tech Park Azerbaijan
Azerbaijan%as%the%Regional%High%Tech%Hub%
High*Tech*Park*Azerbaijan*
Investment%op9ons%

16. 15© 2014 – High Tech Park Azerbaijan
Azerbaijan*has*set*ambiPous*goals*for*high*tech*economy*development*
and*taken*steps*for*delivery*
• Azerbaijan*aims*to*have*
its*knowledge*economy*
surpass*its*oil*economy*
by*2020*
• High3tech*component*of*
the*knowledge*economy*
is*expected*to*be*
USD15B*by*2024%
AZERBAIJAN*2020*VISION*
AZERBAIJAN*HAS*AMBITIOUS*
HIGH*TECH*GROWTH*GOALS*
Government*/*
Legal*
Funding*
Culture*EducaPon*
Access*to*
Markets*/*
Customers*
• Government identified high tech
development as priority; established
HTP, Tech Fund, IT University
• Tech Fund established
• Initial interest received from
outside investors
• General public and especially
youth have high technology
adoption rate
• IT University established jointly
with ADA
• More international scholarships
are being given to top students
• Azerbaijan has increased
business and travel links to
regional and international markets
• IT infrastructure is strong
FIVE*ELEMENTS*
TO*BUILD*A*
SUCCESSFUL*
HIGH3TECH*
ECOSYSTEM*
AZERBAIJAN*HAS*TAKEN*CONCRETE*STEPS*ON*ALL*FRONTS*TO*DELIVER*ON*THESE*GOALS*
–*FUNDING*PROVIDES*OPPORTUNITIES*FOR*DEVELOPMENT*

17. 16© 2014 – High Tech Park Azerbaijan
Azerbaijan*has*set*an*ambiPous*goal*to*transform*to*a*knowledge3based*
economy*and*has*started*building*its*“Golden$Triangle”***
Azerbaijan$highGtech$
ecosystem$is$being$
developed$on$three$
pillars$forming$the$
“Golden$Triangle”$
$$$
@*@@*
IT*UNIVERSITY%
Educates*the*human*
capital*and*conducts*
research*required*for*
the*high*tech*economy*
success%
TECHNOLOGY*FUND%
Provides*funds*for*R&D*
and*investment*
acPviPes*to*support*
and*accelerate*success*
of*high*tech*companies%
HIGH3TECH*PARK%
Houses*high*tech*
companies,*R&D*centers,*
clean*producPon*faciliPes,*
and*provides*incenPves*to*
grow*the*high*tech*
economy%
Σ*Σ*Σ*
“GOLDEN*TRIANGLE”*OF*HIGH3TECH*DEVELOPMENT$

18. 17© 2014 – High Tech Park Azerbaijan
Azerbaijan*has*set*an*ambiPous*goal*to*transform*to*a*knowledge3based*
economy*and*has*started*building*its*“Golden$Triangle”***
• High%Tech%Park%was%launched%by%HE%
President%Ilham%Aliyev’s%decree%on%
November%5,%2012%
• The%decree%was%signed%within%the%
Azerbaijan%2020:%Vision%of%the%Future%
framework%
• Major%goal%of%%2020%Vision%for%Azerbaijan%is%
to%transform%its%oil%based%economy%to%a%
knowledgePbased%economy%
• High%Tech%Park%is%the%cornerstone%project%
of%the%Vision%with%the%goal%of%developing%a%
sustainable%and%compe99ve%environment%
for%ICT%
• 50%hectares%of%land%on%Pirallahi%Island%has%
been%granted%for%use%of%HTP*
• The%State%Fund%for%Development%of%
İnforma9on%Technologies%was%launched%by%
HE%President%Ilham%Aliyev’s%decree%on%
March%15,%2012%
• Similar%to%HighPTech%Park,%ICT%Fund%
operates%under%the%Ministry%of%
Communica9ons%and%High%Technologies%of%
the%Republic%of%Azerbaijan%
• Main%goals%of%the%Fund%is%giving%credits%to%
the%entrepreneurship%subjects,%and%grant%
financing%
• In%2014,%ICT%Fund%granted%more%than%USD%
700K%to%31%projects,%seleted%from%194%in%
total%
• IT%university%will%be%operated%by%ADA%
university,%which%was%established%under%
the%%decree%of%HE%President%Ilham%Aliyev’%
on%January%13,%2014%
• The%University%is%the%legal%heir%of%the%
Diploma9c%Academy%of%the%Ministry%of%
Foreign%Affairs%of%the%Republic%Azerbaijan%
and%Informa9on%Technologies%University%
• Some%of%ac9vity%areas%are;%the%
establishment%of%research%and%innova9on%
center,%training%of%highly%qualified%
specialists,%improvement%of%science%and%
educa9on,%acquisi9on%of%intellectual%
property%rights,%conduc9ng%consul9ng%and%
marke9ng%services%in%engineering,%
informa9on%technologies%
$
@*
Σ* $
@*
Σ* $
@*
Σ*
State%Fund%for%Development%of%
Informa9on%Technologies%

19. 18© 2014 – High Tech Park Azerbaijan
Azerbaijan*is*building*a*“full3spectrum”*high*tech*park*with*various*anPcipated*
fields*to*foster*its*knowledge*economy*
Full3spectrum*high*tech*parks*generate*larger*and*deeper*economic*impact*
HTP$will$be$a$fullG
spectrum$high$tech$
park$featuring$these$
elements$
FULL*
SERVICE*
1. Incubator%for%Startups%
2. SMEs*
3. Large%Enterprises*
4. High%Value%Add%Clean%
ProducPon%%
1 2 3MULTIPLE*SECTOR*
FOCUS*
• Starts%with%334*focus*
sectors%
HIGHLY*
INFLUENTIAL*
• Preferred*strategic*
high*tech*partner%in%
Azerbaijan%as%the%
thoughtPleader%
• The$hub%of%ac9vity%in%
the%region%
• InformaPon*Technologies*&*Sotware*
Engineering*
• Mobile*Technologies*
• TelecommunicaPons*
• E3business*
AnPcipated*fields*of*research,*development,*and*producPon%
• AlternaPve*Energy*&*Energy*
Efficiency*
• Aerospace*
• AutomoPve*&*TransportaPon*
• Semiconductor*LighPng*

20. 19© 2014 – High Tech Park Azerbaijan
Azerbaijan%as%the%Regional%High%Tech%Hub%
High%Tech%Park%Azerbaijan%
Investment*opPons*

21. 20© 2014 – High Tech Park Azerbaijan
HTP*offers*unique*investment*opPons*along*with*strong*incenPves*to*capitalize*on*
the*high*tech*growth*of*the*region*
Start*up/*VC*
funding*
Real*estate*
investment*
Technology*
Transfer*
• Plots%for%demand%based%clean%
manufacturing%for%500%employees%total%
• Renewable%energies,%LED%ligh9ng%,%IT%
components,%Electronics%etc%
• Total%Developed%spaceP%190,000%sqm%
• Office%:%150,000%sqm%
• Residen9al/HotelP%30,000%sqm%%
• Over%250%start%up%employees%in%various%
companies%
• Facili9es%like%Incuba9on,%networking%
opportuni9es%%
Investment%op9ons%

22. 21© 2014 – High Tech Park Azerbaijan
**High*Tech*Park*will*be*built*on*a*50*hectare*site*on*an*island*next*to*Baku*
3*high*level*concept***
FaciliPes*&*Services*for*Established*Companies%
FaciliPes*&*Services*for*Startup*Companies%
PI*Campus*IncubaPon*Center*will%support%highPtech%startups:%
• Office%space%and%facili9es%such%as%mee9ng%rooms,%storage%
areas%etc.%
• Facility%services%such%as%recep9on,%security,%cleaning,%%facility%
management%
• Event%services%such%as%seminars,%%networking%events,%
organizing%collabora9on%with%local%and%foreign%related%
communi9es%
• Educa9onal%services%such%as%trainings,%language%courses,%
• Mentoring%and%consultancy%services%such%as%business%plan%
consultancy,%developing%business%model%for%poten9al%
investors,%project%funding%strategy%
High*Tech*Center%will%support%ICT%companies%with;%
• All%services%above%
• Accoun9ng%and%legal%services%
• Technical%support%services%
• Resident%and%investor%networking%services%
• Management%consul9ng%services%
• Promo9on%and%development%services%
• Job%pos9ngs%and%HR%support%
HTP*will*be*located*in*Pirallahi*Island*on*a*50*Ha*dedicated*lot%

23. 22© 2014 – High Tech Park Azerbaijan
High*Tech*Park*provides*incenPves*to*do*business*in*an*avracPve*market*
Tenants*are*provided*incenPves*
such*as:*
IncenPves*provided*to**
High*Tech*Park*tenants$
• Profit$tax$relief$for$7$years$
• RealGestate$and$land$tax$relief$
• ValueGAddedGTax$relief$
• Business$services$(e.g.,$training)$
• Access$to$talent$and$academia$
AddiPonal*incenPves*available*
*per*business*opportunity* Strong*incen8ves*provided*by*the*government*to*HTP*residents*guarantee*
high*demand*for*the*Park.**Investment*incen8ves*will*also*be*available*
upon*comple8on*of*the*Master*Plan*to*further*minimize*investment*risk.**
Investors*are*urged*to*demonstrate*early*interest*in*development*
opportuni8es.*

24. 23© 2014 – High Tech Park Azerbaijan
We*already*have*37*companies*in*various*type*of*offices,*enjoying*to*be*
at*the*center*of*entrepreneurship*ecosystem*
• Over%37%startup%have%been%%accepted%as%
tenants%in%Pi%Campus%(business%incuba9on%center)%
• Pi%Campus%tenants%have%businesses%in;%
online%food%ordering,%online%human%
resources%solu9ons,%social%media%
monitoring,%bonus%and%cashback%systems,%
online%payment,%and%social%media%
monitoring%among%others%
• Pi%Campus%has%hosted%more%than%60%
events%and%trainings%within%10%months%of%
opening%
• Social%media%monitoring%system%
• Measures%any%word%or%url’s%usage%in%social%media%
globally%for%companies,%and%reports%results%in%various%
infographics%
Screenshots*from*SocSet*customer*interface:*
• Digital%services%on%product%development%and%management%
consul9ng%
• Corporate%Website,%Mobile%app,%Ecommerce%development%
Some*partners:**
Example*projects**

25. 24© 2014 – High Tech Park Azerbaijan
We*have*built*internaPonal*partnerships*and*hosted*events&training*sessions*
Entrepreneur%Training%Program%
with%MIT%Entrepreneurship%
Center%Founder%Ken%Morse%
Mentorship%Program%
with%coaching%guru%
Nicolai%Tillisch%%
Soon:**
Current*Partnerships:* Events*and*Programs:*

26. 25© 2014 – High Tech Park Azerbaijan
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*
*********facebook.com/HighTech.az*
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*********www.HighTech.az*
*
*********info@hightech.az*
THANK*YOU*
VISIT*US*IN*PERSON*IN*BEAUTIFUL*BAKU**
or*VIRTUALLY*AT:*
linkedin.com/company/high3tech3park3azerbaijan*