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Aghdam Industrial Park Drives Azerbaijan's Reconstruction Efforts in Liberated Territories

By Gunay Hajiyeva November 4, 2024

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Aghdam Industrial Park / Azertag

The Aghdam Industrial Park is powering the reconstruction efforts of the Azerbaijani government in the territories liberated from Armenian occupation in 2020.

According to the Economic Zones Development Agency (EZDA), products manufactured at the park, including roofing, wallpapers, porous masonry blocks, iron and metal doors, blinds, railings, partitions, and metal meshes are actively used in restoration projects in the liberated lands.

The building materials rolled out in this park are primarily utilized in the reconstruction of villages in Aghdam, Jabrayil, Lachin, Kalbajar and other districts.

EZDA reports that the park’s residents have achieved a total sales volume of AZN 1.8 million (USD 1.06 million) in building materials to date.

The Aghdam Industrial Park has granted residency status to 28 businesses, collectively investing AZN 260 million (USD 153 million), and has assigned non-residency status to four additional entrepreneurs.

With nine enterprises now operational, the park generated over 370 permanent jobs, consolidating its role as a significant contributor to the economic revival in the Karabakh (Garabagh) and East Zangezur regions.

After the 44-day war between Armenia and Azerbaijan in 2020, liberated Aghdam has been a focal point for extensive reconstruction initiated by the Azerbaijani government as part of the ongoing comprehensive restoration campaign encompassing the Karabakh region of Azerbaijan.

Azerbaijan features five distinct industrial zones, primarily designed to foster non-oil sector’s growth, develop novel production domains via innovative technologies, and expand the spectrum of exportable goods. Among these, the establishment of industrial parks holds substantial potential for innovative economic advancement. Decrees were signed to establish the Aghdam Industrial Park on May 28, 2021, and the Araz Valley Economic Zone on October 4, 2021.

As part of the overarching reconstruction initiative, Azerbaijan embarked on the construction of the Aghdam Industrial Park in August 2022, spanning an area of 190 hectares (470 acres).

The park includes social and technical zones, incorporating sectors such as food production, light industry, building material sales, a vehicle park, and extensive industrial enterprises.

The roadmap for the industrial park entails the establishment of enterprises engaged in producing building materials, meat and dairy products, wines, feeds, and fertilizers, as well as the packaging of agricultural produce and the production of canned fruits and vegetables.

The Aghdam Industrial Park’s creation is aimed at revitalizing liberated territories, unlocking Karabakh's industrial potential, supporting entrepreneurship, establishing competitive industrial production and increasing employment.

According to latest EZDA data, since 2013, resident status has been granted to over 140 business entities in industrial parks and zones in Azerbaijan, with a total investment volume of AZN 7.8 billion (USD 4.6 billion). Entrepreneurs have invested over AZN 6.7 billion (USD 4 billion), creating more than 10,500 permanent jobs. In the next phase of existing projects, an additional AZN 1 billion (USD 588 million) investment and creation of over 6,500 new jobs are planned.