Industrial parks

An industrial park is a territory that has the necessary infrastructure and management entities for entrepreneurial activities, used to produce competitive products and provide services through the application of modern technologies, which contributes to the efficient operation and development of entrepreneurs.

In accordance with the Presidential Decree of the Republic of Azerbaijan dated January 22, 2021 on improving the management of industrial parks, industrial districts and agro-parks, the Agency for Development of Economic Zones was established in our country. The principal purpose in the establishment of the Agency is to prepare and ensure the implementation of activities related to the organization, management and development of industrial parks (except for the Balakhani Industrial Park), industrial districts (except for industrial districts established in the Nakhichevan Autonomous Republic) and agro-parks, as well as to implement the measures of state support provided in this direction.

The goals of establishing an industrial park include:

  • developing competitive industrial production based on innovative and high technologies, creating favorable conditions for the provision of services and supporting entrepreneurship in this area;
  • ensuring sustainable development of the economy, including the non-oil sector;
  • increasing the availability of the country for domestic and foreign investment;
  • increasing employment of the able-bodied population in the sphere of production.

In line with the legislation, the following incentive measures are applied in industrial parks:

  • incentive measures in tax and customs (in accordance with the Tax Code of the Republic of Azerbaijan and the Law of the Republic of Azerbaijan “On Customs Tariff”, residents of industrial parks shall be exempt from property tax, land tax, income tax or profit tax for 10 years from the date of their registration, including from VAT and customs duties for 7 years on the import of machinery, technological equipment and structures imported for production purposes);
  • providing the industrial park with infrastructure;
  • determining the lower limit of land rent;
  • simplifying administrative procedures;
  • organizing services for the effective implementation of entrepreneurial activities.

Sumgait Chemical Industrial Park was established by the  Presidential Decree of the Republic of Azerbaijan dated December 21, 2011. It is planned to produce competitive products (works, services) and establish processing enterprises in the petrochemical and other priority sectors on the territory of Sumgait Chemical Industrial Park, which covers an area of 583.5 hectares.

25 enterprises received the status of a resident of the Sumgait Chemical Industrial Park, which is the largest industrial zone of our country and the region as a whole. The actual number of operating enterprises increased to 17.

On January 18, 2021, ceremonies of laying the foundation of the Sulfuric Acid Production enterprise of Azersulfat LLC, the Glass Containers (Bottles) Production enterprise of Glassica CJSC and the opening ceremony of Azerfloat CJSC under the project "Production of Thermoforming Sheet Glass", as well as "Azmonbat" LLC under the project "Utilization of Lead-Acid Batteries" were held on September 3, 2021 in the Sumgait Chemical Industrial Park with the participation of the President of the Republic of Azerbaijan, Mr. Ilham Aliyev.

In 2021, Azeka-BM LLC and Azerbaijan Vanhong Ceramics Co. LLC received the status of a resident of Sumgait Chemical Industrial Park.

Also, there is a Vocational Education Center under the Agency for Development of Economic Zones that provides vocational education in various areas.

The Balakhani Industrial Park was established in Baku by the Presidential Decree no. 1947 of the Republic of Azerbaijan dated December 28, 2011. Tamiz Shahar OJSC is the managing organization of Balakhani Industrial Park. In total, 24 residents were registered in the Park, and 17 of them have been launched. The establishment of this Park mainly focuses on creating favorable conditions for potential entrepreneurs and investors interested in the field of reprocessing.


In line with the Presidential Decree no. 1255 of the Republic of Azerbaijan dated June 3, 2015, Garadagh Industrial Park was established in the Garadagh district, Baku. There is one resident in Garadagh Industrial Park – Baku Shipbuilding Plant LLC.

Also, by the Presidential Decree no. 1077 of the Republic of Azerbaijan dated February 26, 2015, Mingachevir Industrial Park was established. 2 factories (using the "Ring" and "Open End" method) of Mingachevir Textile LLC, registered as a resident of the Mingachevir Industrial Park with an annual production capacity of 20,000 tons of yarn from raw cotton, were put into operation on February 27, 2018 with the participation of the President of the Republic of Azerbaijan.


With the aim of developing the pharmaceutical industry in our country, the Presidential Decree of the Republic of Azerbaijan dated September 14, 2016 established Pirallahi Industrial Park with an area of 30 ha. Currently, 4 enterprises have been registered as residents of the Pirallahi Industrial Park, 2 of which have already begun their activities

Given the particular importance of the successful implementation of construction and improvement works in the liberated territories, as well as the formation of a competitive and sustainable economy to ensure sustainable population resettlement, the development of public-private partnerships and the application of the necessary incentives, Aghdam Industrial Park with an area of 190 ha was established in Aghdam by the Decree of the Head of State dated May 28, 2021. The territory of the first stage with an area of ​​76 hectares has been cleared of mines and unexploded ordnance. The design work is currently being completed. A power line was laid on the territory of the park, an artesian well was dug, a container town with the necessary service facilities was built for the purpose of mobilization, and an asphalt road was laid on the territory, with landscaping work. Two entrepreneurs have already received the status of a resident of the Industrial Park. Dadash-N LLC, which will be engaged in the production of various types of synthetic carpets, will build a factory on an area of ​​2 hectares in Aghdam Industrial Park. As part of the project with an investment cost of 9.5 million manats, it is planned to produce more than 1 million square meters of carpets and provide permanent employment for 60 people. Veliev LLC, another new resident of Aghdam Industrial Park, is going to implement the Precast Concrete Products Production project.

And also with the aim of carrying out logistics and trade activities, providing services, supporting industrial production and ensuring sustainable employment of the population in the liberated territories, Industrial Park "Araz Valley Economic Zone" was established in the East Zangazur economic region, on the territory of the Jabrayil region by the Presidential Decree no. 1453 of the Republic of Azerbaijan dated October 4, 2021. The Industrial Park will serve as a logistics center for restoration and reconstruction work carried out in the liberated territories, and a logistics base for the effective use of the transport potential of Zangazur corridor. Work is also being carried out in stages in this Industrial Park. In Araz Valley Economic Zone, the foundation of a joint service center of "KamAZ" OJSC and "Ganja Automobile Plant" Production Union was laid. In addition to KamAZ, the regional service center will carry out maintenance of other trucks, as well as agricultural machinery, including tractors and combine harvesters. Future plans include creating logistics and warehouse complexes, TIR-park, wholesale and retail trade facilities, various manufacturing and service enterprises in the Industrial Park. A conceptual plan for the Industrial Park has been developed, and the installation of containers for organizing the social zone of the Park will begin at the next stage.