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Slovak companies may benefit from industrial parks of Azerbaijan

21 June 2016 17:00 (UTC+04:00)
Slovak companies may benefit from industrial parks of Azerbaijan

By Nigar Abbasova

Azerbaijani Economy Minister, Sahin Mustafayev has invited Slovak companies to invest in the areas of industry, agriculture, construction, transportation, tourism, and in particular, in projects implemented by the private sector.

Addressing a meeting with Slovakia’s Deputy Prime Minister for Investments and Information Society Peter Pellegrini he noted that Slovak companies can benefit from advantages created for investors in Azerbaijan’s industrial parks.

The minister underlined that the two countries have already established cooperation in the spheres of energy, trade, and investments. He stressed that currently ten companies with Slovak capital successfully operate in Azerbaijan.

Slovakia’s Deputy Prime Minister Peter Pellegrini, in his turn, noted the potential for further expansion of bilateral relations.

Energy-rich Azerbaijan, which has recently faced with the negative influences of the global economic crisis, takes bids to develop non-oil sector of the economy to diminish the side-effects of low oil prices. Further development of non-oil industry in the country is an issue of top priority for the government of the country.

Industrial districts and parks are considered to be an important element of modern innovative economy.

Industrial parks have been so far created in Sumgait, in the village of Balakhani and Garadagh in Baku and Mingachevir. Works on the provision of infrastructure in the created industrial parks are currently underway.

The construction of the Neftchala industrial district is nearing to an end. Another industrial district is expected to be created in Masalli region located in 240 km of capital Baku.

The government has also made certain changes to the legislature in order to ensure further development of the concept of industrial parks and districts. Import of goods by the industrial park residents is exempt of customs duties for a term of five years, while foreign residents of industrial parks are exempt from payments for compulsory social insurance as well as the equipment and technologies used in industrial parks is also exempt from value added tax.

The country seeks to further boost this sphere and create industrial parks in other cities and provides favorable conditions for other countries to participate in the industrial parks.

The total number of industrial parks' residents is currently 12, seven being in Sumgait and four in Balakhani and in Garadagh.

The trade turnover between Azerbaijan and Slovakia amounted to $12.9 million in January-May 2016, according to Azerbaijan’s State Customs Committee. Export turnover between the two countries increased by 295 times, import – by 51.7 percent during the year.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

Follow us on Twitter @AzerNewsAz

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