1 Introduction 1.1. What is this Report About? 1.2. Definitions 1.3. Summary Methodology 1.4. SDI Terrorism Index 1.5. About Strategic Defence Intelligence 2 Market Entry Strategy 2.1. Market Regulation 2.1.1. Azerbaijan's foreign investment policy prohibits FDI in the defense sector 2.2. Market Entry Route 2.2.1. Government-to-government deals form an attractive entry route for foreign manufacturers 2.3. Key Challenges 2.3.1. Corruption reduces transparency in defense deals 2.3.2. Arms embargo imposed by OSCE 3 Appendix 3.1. About SDI 3.2. Disclaimer