BAKU, Azerbaijan, October 20. The annual value
of industrial items produced in Azerbaijan has increased 21.6 times
in the last 20 years, from 4 billion to 86.4 billion manat (from
$2.3 billion to $50.8 billion), Economy Minister Mikayil Jabbarov
wrote in his article, Trend
reports.
His article “Azerbaijan: a winning state with strong economic
potential” was published in the “Azerbaijan” newspaper.
“If in 2002 the share of the private sector in the total volume
of industrial production was 54.9, in 2022 it amounted to 87.6
percent. The volume of production in the country’s non-oil and gas
industry increased from 1.6 billion to 17.7 billion manat (from
$941.1 million to $10.4 billion) in 2002–2022, indicating a real
growth of 4.3 times,” he said.
In addition, the minister said that the development and
diversity of industry through innovative methods play an important
role in economic diversification.
“In this context, the launch of competitive production and
processing enterprises based on modern technologies that replace
imports and create new export opportunities can be assessed,” he
emphasized.
Jabbarov mentioned that one of the important mechanisms aimed at
the development of industry is the creation of industrial zones –
industrial parks and neighborhoods on the initiative of the head of
state.
“A total of 7 industrial parks – Sumgayit Chemical, Balakhani,
Mingachevir, Garadagh, Pirallahi, Aghdam and Jabrayil (“Araz
Economic Zone”) industrial parks, 5 industrial neighborhoods –
Neftchala, Masalli, Hajigabul, Sabirabad and Sharur – have been
established in the country. A total of 10.2 billion manat ($5.9
billion) were produced in Azerbaijan’s industrial zones, of which
3.3 billion manat ($1.9 billion) were exported. In the first half
of the current year, enterprises operating in industrial zones sold
products worth 1.4 billion manat ($823.5 million), of which 33.2
percent, i.e., 470.6 million manat ($276.8 million), were
exported,” he noted.
The minister added that the share of industrial zones in the
non-oil industrial sector of Azerbaijan amounted to 16.5 percent
and 20.7 percent (470.6 million manat or $276.8 million) in the
export of non-oil industrial products in the first half of 2023.
Products manufactured in industrial zones are exported to more than
50 countries. Within the framework of the investment incentive
mechanism, which stimulates entrepreneurial activity, creates
favorable conditions for entrepreneurs to receive tax and customs
benefits, and has been applied since 2016, about 583 projects have
been promoted for more than 7 years.
“It is planned to invest more than 5.6 billion manat ($3.2
billion) in the economy and create more than 38,600 jobs as a
result of the realization of the projects. So far, machinery,
technological equipment, and facilities worth over 1.8 billion
manat ($1 billion) have been imported into the country on
preferential terms, and modern production areas have been created.
As a result of the realization of the promoted projects,
enterprises producing new products have been established in the
country,” Jabbarov said.
By the Decree of the President of the Republic of Azerbaijan
dated December 20, 2022, the mechanism of investment stimulation
has been improved, taking into account the experience of previous
years. Since January 1, 2023, the document on investment
stimulation has been issued for 3 years for projects implemented in
industrial areas, agro-parks, tourist-recreational zones, and
relevant territories, as well as for strategic projects in the
directions determined by the head of state.
To the new criteria was added an environmentally significant
sphere of activity on waste recycling, and tourism-oriented spheres
of activity were expanded. In order to clarify the volume of
imported machinery, technological equipment, and facilities for
projects under the mechanism, a list of commodity items has been
approved. Currently, work is underway to determine the directions
for strategic projects.
