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Akbar Novruz

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Azerbaijan is accelerating efforts to harness the economic potential of its liberated territories through a wave of forward-thinking industrial investment. Anchored by the Aghdam Industrial Park and the Araz Valley Economic Zone, the strategy is clear: build modern industries, empower local communities, and foster sustainable growth.

Aghdam Industrial Park

Established by presidential decree in May 2021, the Aghdam Industrial Park has swiftly become a powerhouse of economic revival. With 30 registered residents and 4 non-residents holding over $163 million in investment, the park has seen nearly $79 million already poured in by entrepreneurs, creating over 900 permanent jobs, many held by residents of Aghdam and neighboring regions.

From construction materials to electrical equipment and railway parts, the park’s output has reached $286 million in total production, including $10.3 million in exports. The products serve not only domestic infrastructure needs but also support reconstruction efforts across liberated areas.

Beyond current activity, the park is preparing for expansion as more of its land becomes available for new investment applications.

A report from 2024 highlights even larger potential: total investments in the Aghdam Park have now exceeded $127 million, with 25 resident businesses and 6 non-residents registered. Of this, $20.5 million was invested directly, yielding around 300 permanent jobs, with expectations of over 2,000 jobs once all projects mature.

Araz Valley Economic Zone

In the Jabrayil district, the Araz Valley Economic Zone spans 200 hectares and occupies a strategic corridor supported by new highways and railways. As of late 2024, 18 resident entities and 3 non-residents are onboard with a combined commitment of approximately $86 million. In the first half of 2025 alone, $1.55 million worth of products were sold, building on earlier outputs.

Groundbreaking in 2024 added significant momentum: Lithuania’s Dominari launched a furniture cluster project worth over $28.8 million, creating 650 jobs, while Karabakh Stone and Prestij-Kimya launched factories worth $4.5 million (95 jobs) and $3.35 million (214 jobs) respectively.

Moreover, long-term targets suggest total investments could reach $77.2 million, supporting over 2,000 jobs, with several major production and logistics facilities in the pipeline.

Both industrial parks benefit from attractive government incentives—ready-built infrastructure (power, water, gas, roads, fiber-optic lines), and a suite of tax and customs exemptions for up to 10 years, including property, land, income, VAT, and customs duties. Residents also receive preferential bank loans, utility discounts, subsidized social insurance, and streamlined labor processes.

These industrial zones are more than just economic hubs—they are catalysts for broader regional development. With multi-sector enterprises—from textiles and furniture to logistics and agro-products—Azerbaijan is transforming liberated territories into engines of growth and reintegration.

The investment into Aghdam and Jabrayil demonstrates a strategy that combines state-led incentives with local and foreign entrepreneurship. The industrial parks are already delivering jobs, fostering exports, and building institutional momentum. With deliberate planning and regional investment, they hold the promise of turning areas once devastated by conflict into cornerstones of a revitalized national economy.