First products will be rolled out at the Aghdam Industrial Park – one of the new industrial clusters created in Azerbaijan’s liberated lands – in 2024 after the enterprises registered at the park are operational.
Elshad Nuriyev, Chairman of the Economic Zones Development Agency of the Ministry of Economy, said five licensed enterprises of the park are expected to launch production next year.
“These enterprises specialize in the production of concrete construction products, construction material frames, and other goods,” local media quotes Nuriyev as saying on Friday.
Azerbaijan has invested around AZN 12 million ($7 million) in the phased development of the Aghdam Industrial Park since 2021. A total of 19 residents and 6 non-residents have been registered at the park to date.
The total direct investments of the residents and non-residents are estimated to hit AZN 176 million ($103 million). More than 1,600 people will be employed in permanent jobs. The collective product portfolio of the park includes carpets, steel-concrete materials, renewable energy-powered items, polymer products, textile products and more.
Subsequent to the 44-day war between Armenia and Azerbaijan, Aghdam has been a focal point for extensive reconstruction initiated by the Azerbaijani government. This rehabilitation endeavor is part of the ongoing comprehensive reconstruction initiative encompassing the Karabakh (Garabagh) region of Azerbaijan.
Post-reconstruction, Aghdam is anticipated to regain its original appearance and welcome back its residents.
Azerbaijan features five distinct industrial zones, primarily designed to foster non-oil sector 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, Azerbaijani 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, services, and extensive industrial enterprises. It will additionally include facilities for building material sales and a vehicle park.
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.
Investments in industrial parks and sites in Azerbaijan have reached $3.7 billion, leading to significant growth in goods production and export operations. Fifty-eight residents have invested more than 6.4 billion manats in the country's industrial parks and sites. In addition, 10,100 permanent jobs have been created since the launch of the first industrial park in 2011.