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.