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Nazrin Abdul

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Azerbaijan's ambitious strategy to restore and develop its liberated territories is gaining momentum, with Agdam Industrial Park emerging as a pivotal element in this transformation. Established by a presidential decree on May 28, 2021, the park is not just a symbol of industrial progress but a significant step toward reinvigorating the local economy, creating jobs, and attracting foreign investment. Located in the region of Garabagh, which was liberated from occupation, the Agdam Industrial Park represents a key part of Azerbaijan's broader efforts to rejuvenate the region’s infrastructure and industrial potential.

A growing hub of industrial activity

The Agdam Industrial Park, now among the largest industrial zones in Azerbaijan, has quickly become a hotspot for entrepreneurship. With 29 business entities investing a total of 271 million manats, and more than 65% of the park already occupied, it is clear that entrepreneurs are showing substantial interest in the region's business-friendly environment. The park's diverse range of enterprises spans multiple sectors, including the production of electrical distribution equipment, construction materials, ventilation systems, fire-fighting equipment, and even wallpapers. Notably, the park is also home to groundbreaking initiatives such as electric vehicle chargers and complex transformer stations.

The industrial park is designed to support the long-term revitalization of the Garabagh region. It serves as a launchpad for the local economy, enabling businesses to tap into the region's untapped potential while leveraging the many tax incentives and state-supported infrastructure. The park’s residents enjoy a host of benefits, including tax exemptions, preferential loans, and a "Plug and Play" model that allows businesses to begin operations with minimal setup time. This not only enhances the ease of doing business but also fosters a competitive industrial environment.

Export potential and international collaboration

A standout feature of Agdam Industrial Park is its focus on export-oriented production. For example, the wallpapers produced in the park are already being exported to neighboring Georgia, marking Azerbaijan’s first foray into the wallpaper export market. Further expansion into other countries, including those in the CIS, Turkiye, and Iraq, is also underway. Moreover, companies like "EEL Electronics" are poised to make their mark by manufacturing chargers for electric vehicles, a first in Azerbaijan. This focus on innovation and international trade is crucial for the park's long-term sustainability and its role in Azerbaijan's broader economic strategy.

As companies in Agdam continue to expand, the park’s products are increasingly seen in key construction and restoration projects in Garabagh. These products, ranging from concrete substations to electrical components, are central to the rebuilding efforts in the region, providing critical infrastructure for the reconstruction of the liberated territories.

Creating jobs and empowering local economy

One of the most significant achievements of the Agdam Industrial Park is its contribution to local employment. As of now, around 380 permanent jobs have been created, with projections indicating that more than 2,400 jobs will be generated once all businesses are fully operational. This aligns with the park's primary goal of creating sustainable employment for the population resettled in the liberated territories. In addition to direct employment, the park's development supports the local supply chain, providing opportunities for businesses in other sectors.

The integration of local workers into high-tech industries, such as the production of electric vehicle chargers and advanced electrical equipment, also paves the way for skill development and knowledge transfer. As more companies set up operations in the park, the demand for skilled labor is expected to rise, further boosting local human capital.

The broader economic impact: A model for future growth

The success of Agdam Industrial Park serves as a model for industrial development in other regions of Azerbaijan, especially the liberated territories. The Azerbaijani government’s support for entrepreneurship, combined with the creation of world-class infrastructure and favorable business conditions, ensures that Agdam is not just a short-term economic project but a long-term engine of growth for the entire country. Moreover, the park's emphasis on modern technologies and competitive industrial production sets a high benchmark for other industrial zones in Azerbaijan.

In an era where innovation and technology are key drivers of economic progress, Agdam’s focus on sectors like electric vehicle chargers and automation systems signals a forward-thinking approach that aligns with global trends. This emphasis on sustainability and technology-driven industrialization will be crucial for the future competitiveness of Azerbaijan's economy.

The Agdam Industrial Park stands as a testament to Azerbaijan’s resilience and vision for the future. What was once a region ravaged by conflict is now on the path to becoming an industrial powerhouse, attracting investments, creating jobs, and contributing to the revitalization of Garabagh. As the park continues to expand and evolve, its role in fostering economic growth, technological advancement, and job creation will only become more pronounced.

In many ways, Agdam Industrial Park symbolizes the broader transformation that Azerbaijan is undergoing — from rebuilding its liberated territories to positioning itself as a leader in regional economic development. With strategic planning, international collaboration, and a focus on sustainable industrial growth, Agdam will continue to play a central role in shaping Azerbaijan’s economic landscape for decades to come.