The collapse of the Soviet Union, in 1991, gave birth to fifteen independent Republics : the Republic of Azerbaijan is one of them, the largest country in the Caucasus region. It is a country abundantly endowed, as its territory covers oil and gas reserves that gave its capital - Baku -the title of the world’s oil center, on the turn of the 20th century. It is thanks to these rich natural resources that Azerbaijan stood on its feet during the first steps of independence and secured for its population an easier transition stage than in other ex-Soviet Republics. Since it regained independence the country has been trying to emerge in the globalized scenery as a modern, market driven economy. A serious of reforms initiated and culminated in 2008-2009 largely changed the structure of the Azerbaijani economy from state -driven, as inherited by the Soviet regime, to open market economy. This progress has been ratified by raising performances in global economic indexes, that measure and analyze economic parameters of countries all around the world. Azerbaijan managed to modernize many of its key economic functions and most importantly it managed to achieve that by simultaneously improving significantly the standards of living of its population. Still, severe challenges persevere, notably persisting bureaucracy and extensive corruption, as well as the pursuit of a diverse and broad production base. This essay will examine the economic environment in Azerbaijan, for foreign investors and local entrepreneurs, as it has been forged so far and the prospects for the future. To this end, some of the world’s most reliable indexes will be recruited. An extensive presentation of Azerbaijan’s performance in the Global Competitiveness Index (GCI) 2012-2013, of the World Economic Forum, published in September 2012, will make up the first section of the essay. The second section will be dedicated to the analysis of the measurements of the Easy of Doing Business Index (EDB) 2012 in Azerbaijan, by the World Bank. Conclusions of the two Indexes will be supported be other institutions’ research in Azerbaijan, such as the Corruption Perception Index of Transparency International, the CIA World Factbook, the Index of Economic Freedom (IEF) by the Heritage Foundation, the IMF Country Report for Azerbaijan. To gain a broader picture of 4 4 where Azerbaijan stands in the global economic community, comparisons of its performance will be made not just with its neighbor countries, but furthermore with the leading economies of the world, i.e. the EU271, USA and China.