Azernews.Az

Qabil Ashirov

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In the heart of the South Caucasus, Azerbaijan is rapidly redefining the contours of its economy. Once recognized almost exclusively for its oil and gas resources, the country is now emerging as a manufacturing and industrial powerhouse, driven by visionary policies and long-term planning. Nowhere is this more visible than in the country’s ever-expanding network of industrial zones.

Recent data from the Economic Zones Development Agency shows that these zones are not just functioning—they are flourishing. In the first half of 2025 alone, industrial zones across Azerbaijan produced ₼1.83 billion worth of goods. Of particular significance is the fact that non-oil industrial production accounted for 18.7% of this output. Even more impressive, non-oil exports from these zones reached 28.3% of total non-oil industrial exports—₼583.5 million in value. These figures are not just numbers; they are a testament to Azerbaijan’s growing industrial strength.

Today, Azerbaijan boasts 13 active industrial zones, each playing a critical role in diversifying the national economy. These zones are home to 160 resident enterprises, supported by a total investment portfolio exceeding ₼8 billion. In addition, 12 foreign-owned companies have registered as non-resident participants, underlining Azerbaijan’s appeal to international investors.

The establishment of industrial zones was a strategic decision made within the framework of Azerbaijan’s broader industrialization policy. This policy, grounded in Azerbaijan’s vision for a diversified and resilient national economy, is beginning to bear significant fruit. The zones have been carefully placed to maximize regional economic potential, ensure balanced development, and bring advanced production technologies into the country.

What makes Azerbaijan’s industrial zones particularly effective is their integration with logistics corridors and transport infrastructure. Located near ports, highways, and rail networks, these zones offer seamless access to both domestic and international markets. This logistical advantage not only supports local producers but also makes Azerbaijan an attractive hub for re-exports and foreign production.

Moreover, the government has introduced a wide array of incentives for businesses operating in these zones. From tax exemptions to customs benefits, the legal framework encourages entrepreneurship and supports the competitive development of industrial sectors such as food processing, machinery, textiles, construction materials, and electronics. These incentives are not just theoretical—they are working in practice, as reflected in the increasing number of investors and the rising export performance.

Beyond economic statistics, the success of these industrial zones carries a deeper meaning for Azerbaijan. They represent a clear break from dependency on oil revenues, and a confident step toward creating a self-sufficient, diversified economy. The zones also play a pivotal role in fostering regional development, creating thousands of new jobs, reducing urban-rural inequality, and building up local supply chains.

It is important to note that the non-oil sector is not being developed in isolation from Azerbaijan’s strategic advantages in energy. Rather, it is a complementary policy. Revenues from oil and gas have been wisely invested in industrial and technological infrastructure, creating a foundation for sustainable growth in manufacturing and exports.

The results are evident. Azerbaijani-made products are now reaching global markets with increasing frequency and competitiveness. "Made in Azerbaijan" is becoming a label associated with quality, reliability, and innovation. This shift is not only economic—it is cultural. It reflects a society that is confident in its capacity to build, produce, and compete on the world stage.

As the world navigates economic uncertainties, Azerbaijan’s clear-sighted industrial policy offers a model of resilience and vision. With each new production line, with each exported container, and with each investor entering our zones, we are collectively writing a new chapter in Azerbaijan’s economic story—one of industry, innovation, and national pride.