THE PLACE OF THE CONSTRUCTION SECTOR IN THE ECONOMY OF AZERBAIJAN

Abstract

The development of the construction sector in Azerbaijan is closely related to the adoption of legislative acts that directly or indirectly affect this field, among other factors. Thus, the transition to a free market economy in the totalitarian Soviet planned economy necessitated extensive privatization in the construction sector, as well as in other sectors, the creation of construction companies based on private ownership, the attraction of direct foreign investments in this sector, and so on. The formation of a competitive environment necessary for the normal operation of the construction sector was determined by the relevant laws. The adoption of laws guaranteeing the protection of foreign investments has been exceptionally important for the development of the construction sector in the country. Although the signing of the "Contract of the Century" in September 1994 was aimed directly at the development of the oil sector in the country, it led to the implementation of a large volume of construction and installation works related to oil production and transportation, as well as the creation of a "construction boom" due to oil revenues. The increase in the income of the population stimulated housing construction. The implementation of extensive infrastructure projects in the country was important in improving the business environment. All these were directly or indirectly the contribution of the construction sector to the country's economy.