ABSTRACT
This paper examines the effect of foreign direct investment (FDI) on Azerbaijan s non-oil GDP. Azerbaijan s economy has long been dependent on its oil sector and diversifying the economy has become a priority for the government. FDI is seen as a potential source of investment that can help diversify the economy and promote growth in non-oil sectors. This study aims to investigate the relationship between FDI and non-oil GDP in Azerbaijan and to provide insights into the factors that influence the success of FDI in promoting economic growth. The study uses a quantitative research method, and the data is collected from the World Bank and the Central Bank of Azerbaijan. The results of the study suggest that FDI has a positive effect on Azerbaijan s non-oil GDP, particularly in the manufacturing and services sectors. However, the study also highlights the challenges that FDI faces in Azerbaijan, including the lack of infrastructure, bureaucratic barriers, and political instability. The findings of this study have important implications for policymakers in Azerbaijan, as well as for investors who are considering investing in the country.

Keywords: foreign direct investment, diversifying the economy, non-oil sectors, gross domestic products, Azerbaijan economy.

JEL Classification: F21, F23, O16