Press conference held on results of activities of Economic Zones Development for past year

A press conference was held on the results of the activities of the Economic Zones Development Agency (EZIA) under the Ministry of Economy, for 2023 and the upcoming tasks.

Chairman of the Board of IZIA, Seymur Adigozalov, informed the media representatives about the work done in the past year and planned measures in the industrial zones under the Agency's management.

It was reported that resident status was granted to 26 business entities in 2023 in the industrial zones under the management of IZIA. 7 of them were registered as residents of Agdam Industrial Park, 5 of "Araz Valley Economic Zone" Industrial Park, 8 of Sumgayit Chemical Industrial Park, 3 of Pirallahi Industrial Park, 1 of Hajigabul Industrial District, 2 of Sabirabad Industrial District. It is planned to invest 471 million manats in industrial zones by registered residents and create more than 3100 jobs. Residents will produce base oils, composite fittings, mirrors, disposable three-component syringes, various purpose medicines, dairy products, aerated concrete blocks, commercial concrete and dry adhesives and other products in industrial zones.

12 enterprises started operating in the industrial zones in 2023 under the management of IZIA. In total, more than 135 million manats were invested in industrial zones by those enterprises, and 744 permanent jobs were created. These enterprises are engaged in the production of polymer additives, ceramic tiles, packaging products, thermal insulation boards, brake dams for vehicles and other products.

So far, 142 business entities in industrial zones have been granted resident status. Entrepreneurs have invested more than 6.6 billion manats in industrial zones, more than 10 thousand permanent jobs have been created. It is planned in the next phase of existing projects to invest up to 830 million manats in industrial zones and create more than 7,000 new jobs.

So far, a total of 12.1 billion manats worth of products have been produced in industrial zones, of which 3.9 billion manats or nearly 32.2% have been exported.

Residents of industrial zones sold products worth 3.3 billion manats, of which 989 million manats were exported in 2023. Compared to 2022, sales increased by 12.5%. The specific weight of industrial zones in the production of non-oil industry products was 18.6%, and 23.6% in their export during this period.

The products produced in the industrial zones were exported to 70 countries of the world (Canada, USA, UAE, China, India, Israel, Spain, Italy, Austria, England, Brazil, etc.).

About 10 enterprises are planned during this year to start operating in the industrial zones under the management of IZIA. In total, it is planned to create permanent jobs for approximately 1,000 people in these enterprises.

Media representatives were also informed about Aghdam and "Araz Valley Economic Zone" industrial parks created in our territories freed from occupation. It was reported that so far 20 business subjects have been granted residency status and 6 entrepreneurs have been granted non-residency status in Agdam Industrial Park. These residents are expected to invest more than 190 million manats in the Industrial Park and create more than 1,700 jobs. More than 5 enterprises are planned to start operating in the Industrial Park this year (enterprises for the production of wallpapers, several types of shoes, roof coverings, pipe and box profiles, ventilation, fire-fighting equipment and various metal products, etc.).

The products to be produced in these industrial enterprises will firstly be aimed at meeting domestic demand, and at the next stage they will be exported under the "Made in Azerbaijan" brand.

To date, more than 15.3 million manats have been invested in Agdam Industrial Park by residents, and about 120 permanent jobs have been created.

"Araz Valley Economic Zone" Industrial Park currently has 10 residents and 1 non-resident. Investors plan to invest more than 67 million manats in the Industrial Park and create more than 700 permanent jobs.

Several enterprises (a 2,000-ton cement terminal, minesweeper, special-purpose machinery and metal products, various types of adhesive tapes) are planned this year to start operating in the Industrial Park.

To date, residents have invested nearly 10 million manats in the "Araz Valley Economic Zone" Industrial Park.

Currently, infrastructure works are being carried out in Agdam and "Araz Valley Economic Zone" industrial parks, the construction of an administrative building, a substation and water reservoirs is underway.  

Residents have saved more than 460 million manats so far as a result of import VAT and customs concessions applied in industrial parks managed by IZIA.

It is also planned this year to establish another industrial park in the country in the city of Ganja. The Ministry of Economy is working at present, on specifying the area where the industrial park will be located, its priority directions and other issues. It is planned to create a metallurgical cluster as the main activity direction of the industrial park, and to increase localization with the further development of the automobile industry, building materials industry (bricks, ceramics, gravel and sand, facing stone, etc.), light industry (including carpet, leather, textile, etc.), food industry (canning of fruit and vegetable products, poultry, dairy and meat products, dried and frozen fruit, production of sunflower oil, etc.), creation of new logistics and trade centers and other areas.

Then the media representatives were informed about the agroparks under the management of the Agency, the work done there and the upcoming goals. It was reported that IZIA has started work from January 2023, related to keeping the register of agricultural parks, as well as issuing the registration certificate of the resident of the agricultural park to the legal and natural persons operating there in accordance with the requirements of the "Model Regulation on Agroparks" approved by the Decree of the President of the Republic of Azerbaijan dated December 21, 2021. In this regard, a total of 24 agricultural parks have been registered, 2 of which are state and 22 are private.

Work is being done at present to create 24 agroparks in 66,000 ha in 22 regions. To date, 22 agroparks have started to operate in the area of 58.6 thousand ha, and construction and installation works are underway in 2 agroparks. 6 of the agroparks specialize in animal breeding, 6 in fruit growing, 11 in agriculture, and 1 in sorting, packaging and logistics. The total project cost of agroparks is 1.2 billion manats. In addition, state support of 147 million manats was provided for the creation of agricultural parks or expansion of their activities. So far, 131 million manat concessional loans have been allocated by the Entrepreneurship Development Fund for the establishment of 14 agroparks, and 18 agroparks with investment promotion documents have received a discount of 16.1 million manats for the import of machinery, technological equipment and facilities.

A total of 5,000 people are expected to be permanently employed in the registered agricultural parks. Currently, more than 2,660 permanent and 4,300 people are engaged in seasonal work in agricultural parks. More than 2,300 additional permanent jobs are expected to be created in the future.

Agricultural parks sold products worth 96 million manats in 2023.

The Yevlax Pilot Agropark is being created in the area of 2,807 hectares in the Yevlax district and the Sabirabad Pilot Agropark is being established in the area of 7,544 hectares in the Sabirabad region within the framework of the pilot project "Integration of medium-sized farms into agro-industrial clusters".

In total, more than 100 million manats will be invested in Yevlax Pilot Agropark, and 500 permanent and more than 1000 seasonal workers will be involved. So far, 33 business entities with a total area of 1882 ha have been granted resident status in the agropark. Residents are expected to invest more than 51 million manats in the agricultural park and create more than 300 permanent jobs. It is planned to export a large part of the fruit growing products to be produced after the agropark starts operating at full capacity.

So far, 8 business entities have been granted resident status in the Sabirabad Pilot Agropark. Entrepreneurs plan to invest more than 60 million manats in the agropark, create 260 permanent and more than 1000 seasonal jobs.

Members of the media were also informed about the activities of the Vocational Education Center under the management of IZIA. It was brought to attention that currently more than 250 students are studying at the Center in 16 specialties. Education is conducted both paid and on the basis of state order. Students who study on the basis of the state order are provided with a scholarship during the study period. Vocational Education Center cooperates with many industrial enterprises. Appropriate measures are taken to provide employment in the cooperating industrial enterprises of the selected students of the center during the educational process. Up to now, the Vocational Education Center has helped about 50 students to find jobs in various enterprises. In the current academic year, 143 students were directed to be employed in various institutions. It is planned to launch new workshops for the practical organization of training at the Vocational Education Center during this year.