The state policy of the Republic of Azerbaijan provides for the comprehensive development of the economy, as well as the dynamic development and diversification of industry based on high technologies. As a result of this successful policy, hundreds of industrial enterprises of various profiles have been built and commissioned in recent years as part of state programs for the socio-economic development of the regions in the Republic of Azerbaijan, ensuring creation of thousands of new jobs. The establishment of industrial districts in the country was determined by the Presidential Decree no. 288 of the Republic of Azerbaijan dated October 8, 2014 "On establishment and organization of the activities of industrial districts". The establishment of the industrial district is aimed at creating favorable conditions for the development of small and medium-sized enterprises operating in industry and the service sector and intensifying employment in the production and services sector.
The Decree determines that an industrial district is a territory used by small and medium-sized businesses for the production of goods and services, which has the necessary infrastructure for entrepreneurial activities. Industrial districts are of great importance in terms of reducing infrastructure costs in organizing the production process, enhancing cooperation, developing small and medium-sized businesses, and so on. In a view to regulate issues related to the establishment, management and implementation of entrepreneurial activities in industrial districts, the Resolution no. 186 of the Cabinet of Ministers of the Republic of Azerbaijan dated May 13, 2015 approved the “Model Regulations for Industrial Districts”. In line with the “Model Regulations for Industrial Districts”, the following incentives to support small and medium-sized businesses are applied in industrial districts:
In the Neftchala Industrial District, which was established on 10 hectares of land by the Decree of the President of the Republic of Azerbaijan dated February 2, 2015 and was inaugurated on September 24, 2017, the processing and canning of cars, fish feed, fish and seafood products, organic liquid fertilizers, electrodes, soy and 6 enterprises registered for the production of extruded cotton yarn have already started operating. As a result of the creation of production areas by the participants of the industrial district, a total of 300 jobs were created.
Masalli Industrial District was inaugurated on September 18, 2018. External and internal infrastructure, including electricity and heat energy, gas, water, sewerage, communication, transport, fire protection, production, administrative, social and other infrastructure facilities, necessary for the effective implementation of entrepreneurial activity, have been built here. At the same time, the first regional KOB Dostu service, which will provide them with numerous supports in accordance with the requirements of sustainable development, and protect their rights, has been launched in connection with business entities operating in the industrial district. At present, 9 enterprises have been registered as participants in the industrial district, which has been put to the use of business entities. 5 enterprises have already started production.
Sabirabad Industrial District was established by the Order of the President of the Republic of Azerbaijan dated November 27, 2017 and the foundation was laid by the President of the Republic of Azerbaijan on November 28, 2017. Construction work has started in the industrial area. Based on the applications of entrepreneurs interested in operating in this industrial district, 8 enterprises were registered as participants, and 6 enterprises started operating. In total, it is planned to create up to 250 new jobs in the industrial district.
In addition, according to Decree No. 831 of the President of the Republic of Azerbaijan dated September 13, 2019, Sharur Industrial District was established. Construction works are currently underway in the industrial district. Currently, 24 residents are registered in the industrial districts, 17 of them have started operating. In general, 6, 8 billion manats were invested, including 225.1 million manats for January-September 2024, as a result of which 10,580 jobs were actually created. In addition, it is planned to invest more than 1 billion manats and create more than 9,400 permanent jobs on existing projects. To date, residents have produced 14.5 billion manats, including 2.4 billion manats during the 9 months of 2024, of which 4.7 billion manats, including the 9 months of 2024 801 million manat part was exported.
