Industrial zones make significant contributions to economic growth

Industrial parks and districts, as well as agro-parks, create new opportunities for expanding the production of export-oriented products and increasing job opportunities in the manufacturing sector.

The development of industry through the application of new models holds great significance for sustainable economic growth in our country. In this regard, one of the key directions in economic diversification is the development of the non-oil industry. In this context, new production facilities and job opportunities are being created, contributing significantly to the development of industry with new methods and technologies, increasing employment levels, and improving public welfare.

The industrial zones established on the initiative of the head of state play a significant role in the development of the industry in the new era. Industrial parks and districts, as well as agro-parks within these zones, serve as effective mechanisms for expanding the production of export-oriented products, promoting the development of innovative and competitive industries, and creating new job opportunities in the manufacturing sector. Currently, there are nine industrial parks in the country: Sumgayit Chemical, Balakhani, Garadagh, Pirallahi, Hajigabul, Mingachevir, Nakhchivan, Aghdam, and the "Araz Valley Economic Zone" industrial parks. Additionally, there are four industrial districts — Neftchala, Masalli, Sabirabad, and Sharur industrial districts — along with 24 registered agro-parks.

Favorable conditions have been created for the development of entrepreneurship in industrial parks, and incentive mechanisms are applied for residents. Industrial park residents are provided with ready-made infrastructure financed by the state, including gas, electricity, water, sewage, fiber-optic lines, and internal road and railway networks. From the date of their registration, residents are exempt from property tax, land tax, and income tax for a period of 10 years. Additionally, they are exempt from VAT and customs duties on the import of machinery, technological equipment, and installations for production purposes.

As a result of the VAT and customs concessions applied in the industrial parks managed by the Economic Zones Development Agency, residents have saved over 505 million manats to date, including more than 44 million manats in 2024 alone.

In addition, various incentives are being implemented in the industrial parks located in the liberated territories. These include subsidies for utility services, state-subsidized mandatory state social insurance fees, state-guaranteed loans, and interest rate subsidies for loans. Furthermore, the import of raw materials and supplies for certain designated economic activities is exempt from value-added tax (VAT) and customs duties.

To date, the total volume of investments made in industrial zones has reached 6.9 billion manats. Currently, 84 enterprises have started operating in these zones, creating nearly 11,000 new jobs.

From 2015 to January 1, 2025, industrial zones have achieved product sales totaling 15.4 billion manats, of which 4.9 billion manats were exported. In 2024 alone, industrial zones recorded product sales worth 3.3 billion manats, with exports accounting for 1.07 billion manats. Products manufactured in these industrial zones are exported to over 70 countries worldwide.

In 2024, the share of industrial zones in the production of non-oil industry products was 17.6%, while their share in the export of non-oil industry products reached 26%.

The mentioned indicators reflect the significant contribution of industrial zones to economic growth.