BAKU, Azerbaijan, May 5. Work has begun on the construction of a heavy industry zone in the Alat Free Economic Zone (AFEZ) as part of ongoing developments, said Valeh Alasgarov, Chairman of the Board of the AFEZ Authority, Trend reports.
In his speech at the "Azerbaijan’s Pharmaceutical Industry: Yesterday, Today, and Tomorrow" conference in Baku, Alasgarov stated that the first 60-hectare area was officially opened to investors in June of last year, with necessary infrastructure already established for their operations.
Alaskerov pointed out that nearly all of the 60-hectare area is already occupied by investors, adding that construction work has now begun for the heavy industry sector on a 364-hectare plot.
"When we were preparing the legislation for the AFEZ, we took the experience of countries like Ireland, Singapore, and China into account. The legislation designates the AFEZ as an extraterritorial area, with an independent governing body. This means that investors are provided with favorable conditions without bureaucratic hurdles, in line with our interests and requirements," he said.
Alasgarov went on to highlight two key aspects of the AFEZ’s success: tax incentives and simplified customs procedures.
"The customs clearance procedures here offer reduced processes, and authorized agencies follow approved guidelines when conducting operations.
As I mentioned, we are actively working to attract investors to the Free Economic Zone. But what kind of investors are we looking to attract? The primary focus is on those engaged in high-value-added, export-oriented production activities.
Export-oriented production means that at least 75 percent of the produced goods must be exported. This model is not our invention; it is based on the practices of countries like Ireland and Singapore. Experience has shown that without this requirement, hundreds of small enterprises may form, which create problems for companies engaged in the core economy of the Free Economic Zones.
For this reason, we prioritize these criteria when selecting investors. Special emphasis is placed on quality, safety, and environmental protection. Regarding environmental standards, all efforts are aligned with European Union regulations.
Furthermore, an airport is currently under construction in the Alat Free Economic Zone. Initially, it was planned as a cargo airport, but it has now been decided to develop it into an international airport. Why is this important? Because it is crucial for investors. The Alat Free Economic Zone is strategically located at the crossroads of international transport corridors. Once the airport is completed, all transport and logistics issues for our investors will be streamlined and more accessible.
Additionally, the Transport and Logistics Center within the Alat Free Economic Zone is already operational and providing essential services to our investors. The goal of my meeting today is to invite both local and foreign entrepreneurs, already operating in Azerbaijan, to join this initiative in the Alat Free Economic Zone.
It is vital to support the production of pharmaceutical products in Azerbaijan. There is a high demand, but we also need to address the packaging aspect, as the packaging process is relatively short. Therefore, this initiative should be carefully considered," he said.
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