Azerbaijan expands industrial potential - investors invest billions

The Russian Ministry of Industry and Trade plans to launch an industrial park in Sumgayit in 2025 and hopes that it will be used not only by Azerbaijani, but also by Russian enterprises. This was announced the other day by a representative of the department.

In addition to Turkiye, Iran and Russia, China is also interested in industrial parks in Azerbaijan. Chinese experts note that the creation of industrial parks in the country with the participation of Chinese partners will increase the volume of exports of high-value-added products. In addition, it is worth considering the creation of joint specialized industrial parks for the production of electronics, automobiles and machine-building products.

The joint industrial park with the Russian Federation will be the first such project of the two countries. But not the first industrial park in this Azerbaijani city. Since 2011, Sumgayit has been operating a chemical industrial park, the largest not only in the country, but also in the South Caucasus as a whole. This industrial zone fits seamlessly into the industrial structure of Sumgayit and attracts the attention of an increasing number of residents.

At the end of April, the next enterprises were opened at the Agricultural Processing Plant. President Ilham Aliyev attended the ceremony. The Head of State commissioned the Kartash Kimya Construction Chemicals plant and the IVECO truck and special purpose vehicle manufacturing plant of Az-Tex-Import LLC.

Kartash Kimya LLC received resident status in 2022, the foundation of the enterprise was laid in 2003, and finally, on April 30, 2025, it started operating. The plant is equipped with advanced Turkish-made equipment, there are 7 production lines for various types of products. It is important that the raw materials for the production of products are provided by local resources. It should also be noted that the LLC will produce products that have not been produced in Azerbaijan before. This is an important step in the context of import substitution policy, as well as an opportunity to expand domestic exports. It is already known that the plant's products will be exported to Turkiye, Uzbekistan, Kazakhstan, Turkmenistan, Russia and Georgia.

I think there is no need to represent IVECO. With the opening of the plant in the Agricultural Processing Plant, the assembly of Italian trucks and special-purpose vehicles of this brand is being established in Azerbaijan. The new company's products are also planned for both the domestic and foreign markets.

It is planned to open 5 or more new enterprises in the Sumgayit Chemical Industrial Park this year, and the total number of residents of the park has already reached 30. It has recently become known that Bayraktar Teknoloji Az?rbaycan LLC has officially received the status of a resident of the Chamber of Commerce and Industry. It is reported that the company plans to implement the project "Production of unmanned aerial vehicles" on the territory of the industrial park. The Protocol of Intent between the Ministry of Defense of Azerbaijan and Baykar was signed in 2023. The document provided for the joint production of drones in our country. The production of UAVs at the site of the Sumgayit Chemical Industrial Park increases the status of this park, as it is integrated into the production system of the country's military-industrial complex.

The Sumgayit Chemical Industrial Park is the first industrial park established in Azerbaijan. The head of state signed a corresponding decree in 2011. Today, 39 business entities with a total investment volume of over 6 billion have received resident status here. 26 residents have already started manufacturing products and are exporting them to 70 countries around the world. Since the beginning of this year, the production activity at the Agricultural processing Plant has noticeably intensified. According to the Ministry of Economy, production increased by 14.2 percent in the first quarter, while exports increased by 17.2 percent. More than 6 thousand permanent jobs have been created here.

Investments in industrial zones are expected to grow in Azerbaijan this year due to the creation of new enterprises. According to calculations, additional investments are expected in the amount of 224.6 million manats. Newly registered enterprises in the country's industrial zones will produce medicines, pharmaceutical equipment, furniture, metal products, various building materials, and so on. In addition, more than 2,600 permanent jobs will be created. In 2024, ten new enterprises were opened, which provided permanent jobs for about 400 citizens and invested about 50 million manats in production. It should be emphasized that most of the new enterprises have opened in the Agdam Industrial Park.

As of the end of December last year, the number of residents of the Agdam Industrial Park reached 29. In March, Mister Decor LLC, a resident of the Agdam Industrial Park, presented its stand at the International Exhibition of Building Materials and Decor in Beijing. For the first time, our country presented the wallpapers of the Made in Azerbaijan brand on an international platform, and it is symbolic that they were produced by the company. operating in the industrial zone of liberated Aghdam.

The foundation of the Agdam Industrial Park (APP) was laid by President Ilham Aliyev on May 28, 2021. Applications from entrepreneurs began to arrive almost immediately after the foundation of the park. Today, the Agdam Industrial Park (APP) is the second largest industrial park in the country after the Sumgayit Chemical Industrial Park. The Head of State launched factories in the Agdam industrial park for the production of roofing, ventilation, fire-fighting equipment and metal products, wallpaper, automation and telemechanics systems, footwear, electrical distribution equipment, electrical outlets and concrete substations. Negotiations are underway with European countries on the export of construction shoes produced by one of the residents of the Agdam Industrial Park. The company has already received a certificate that allows it to export products to Europe.

In early May, the Prime Ministers of Azerbaijan and Belarus visited the Agdam Industrial Park. Ali Asadov and Alexander Turchin got acquainted with the work of the enterprises operating here.

As we have already noted above, the number of people wishing to establish production facilities in industrial parks and neighborhoods in Azerbaijan is growing. Industrial zones have shown that they are the best platform for business development, as they provide entrepreneurs with the best conditions. And, first of all, of course, we are talking about benefits. Residents of industrial parks are fully exempt from property, land, income taxes, as well as from VAT and customs duties on the import of machinery, technological equipment and installations for production needs for a period of 10 years from the date of their registration. Due to VAT and customs duties on imports, residents of industrial parks managed by the Agency for the Development of Economic Zones (IZIA) saved more than 501 million manats at the beginning of the year.

It should be noted that currently there are 9 industrial parks and 4 industrial districts in Azerbaijan. 170 business entities with a total investment volume of 8.1 billion received resident or non-resident status in the country's industrial zones. manats. Entrepreneurs have invested more than 6.9 billion in industrial zones. They have created over 10,600 permanent jobs. Industrial zones have already sold products worth more than 16 billion. Of this volume, the share of agricultural enterprises accounts for 14 billion manats. manats (including 5 billion. manats is accounted for by exports). Industrial parks are becoming drivers of regional development and are turning into production centers that attract small and medium-sized businesses..

Industrial parks are the most convenient and attractive way for entrepreneurs to organize production and create a mutually beneficial production environment. PP is attractive for both entrepreneurs and investors, including foreign ones. Azerbaijan's industrial zones provide opportunities for the development of production on any scale.