The industrial parks established in the liberated territories play an important role in realizing the industrial potential of the region.
Efforts are underway to realize the industrial potential of the liberated territories, develop the manufacturing sector in the region, and ensure the efficient use of available natural and economic resources. For this purpose, systematic measures are being implemented in the Aghdam Industrial Park and the ‘Araz Valley Economic Zone’ Industrial Park, focusing on the establishment of industrial production, the manufacturing of competitive products, and the broad application of advanced technologies through the adoption of innovative methods.
Established by the Decree of the President of the Republic of Azerbaijan dated May 28, 2021, the Aghdam Industrial Park has registered 30 residents and 4 non-residents, with a total investment portfolio exceeding 285 million AZN. Ranking second in the country by the number of residents, the Industrial Park has attracted nearly 138 million AZN of investment from entrepreneurs, resulting in the creation of over 900 permanent jobs, most of which are held by residents of Aghdam and surrounding districts. Since the beginning of its operations, the Industrial Park has produced goods worth approximately 500 million AZN, of which around 18 million AZN have been exported. The Park mainly specializes in the production of construction materials, tobacco products, various types of footwear, ventilation, fire-fighting and metal products, railway equipment, electrical equipment, and more. The manufactured products are widely used in construction and installation works carried out in the liberated territories.
The majority of the Aghdam Industrial Park has been allocated for use by entrepreneurs. Applications for investment in the remaining areas of the Park are currently being accepted.
Established by the Presidential Decree of the Republic of Azerbaijan dated October 4, 2021, the 'Araz Valley Economic Zone' Industrial Park has registered 18 business entities as residents and 3 as non-residents, with a total investment portfolio of nearly 150 million AZN. Located in the Jabrayil district, the Industrial Park has achieved product sales worth 3.4 million AZN to date, including 2.7 million AZN in the first half of this year.
The 'Araz Valley Economic Zone' Industrial Park, covering an area of 200 hectares, is located in the Jabrayil district, which holds strategic importance in terms of logistics, on the newly constructed highway and railway routes. The main activities of the Industrial Park include a logistics and trade center, warehouse complexes, wholesale and retail facilities, a truck (TIR) park, fuel stations, and the repair of automobiles and other machinery.
It should be noted that a favorable environment has been created in the industrial parks to promote entrepreneurial activity. Residents of the industrial park are provided with ready 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, park residents are fully exempt for 10 years from property, land, and income taxes, as well as from VAT and customs duties on the import of machinery, technological equipment, and installations intended for production purposes.
In addition, additional incentives are applied in the existing industrial parks in the territories liberated from occupation. These include specially subsidized bank loans, subsidization of social insurance payments, a 20% discount on utility services, and full exemption from customs duties and VAT on imported raw materials and supplies (based on a specified list).
Entrepreneurs wishing to register as residents in industrial parks can apply to the Development Agency of Economic Zones under the Ministry of Economy.
