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Nazrin Abdul

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As a result of large-scale measures taken in recent years, not only the capital, Baku, but also the regions of Azerbaijan are developing rapidly. Following liberation from occupation, the economic regions of Garabagh and East Zangazur have gained special strategic importance on the country’s economic map through restoration and investment programs. These regions play a decisive role in Azerbaijan’s economic security, regional competitiveness, and long-term sustainable development strategy due to their natural and geographical position, as well as their industrial, agricultural, and logistics potential. Their revival is a cornerstone of Azerbaijan’s post-conflict economic transformation.

AzerNEWS discussed this topic with Vugar Bayramov, an economic expert and deputy of the Milli Majlis (Parliament) of Azerbaijan. According to him, Garabagh and East Zangazur have the potential to contribute at least 10 percent of added value to Azerbaijan’s gross domestic product in the future. This translates into approximately 15 billion manats of new economic value. Strategically, these regions organize gas exports and production, while also creating significant opportunities for expanding non-oil sector production and exports.This diversification is critical for reducing dependence on hydrocarbons and ensuring resilience against global energy market fluctuations.

Bayramov emphasized that the main priorities of state policy include infrastructure restoration, population resettlement, renewal of social services, and the implementation of “smart city-village” models. About 12 billion manats have already been allocated from the state budget for this purpose, while 15 billion manats are expected to be directed to fixed capital in 2026. In total, more than 26 billion manats are projected to be invested in the region in the coming years. Such figures demonstrate the government’s commitment to transforming Garabagh and East Zangazur into hubs of innovation and sustainable growth.

“In the next stage, work is being carried out in parallel to build the economy, which is an integral part of the reintegration process. About 12 billion manats have already been allocated from the state budget for this purpose,” the expert noted. This highlights the dual nature of reconstruction: physical rebuilding and economic reintegration.

However, construction and development are not solely the responsibility of the state. The involvement of private companies is equally important. V. Bayramov explained that the private sector is actively participating in this process, investing in various sectors, creating new enterprises, and providing employment. Once the infrastructure phase is completed, private investments are expected to increase further, which will accelerate industrial diversification and job creation.

Given that more funds will be directed in the coming years, attracting foreign investment remains a priority. Demographically, the settlement of the region will accelerate, creating a more favorable environment for investors. This interplay between population growth and investment inflows is crucial for establishing a self-sustaining economic ecosystem.

Nevertheless, challenges persist. For decades, life in these regions was at a standstill, and only after the victory of the Azerbaijani Army did citizens begin to return to their displaced lands. The silence of more than 30 years cannot be broken in just six years of development. The population has not yet fully migrated, and both the labor force and consumer base remain limited.

Bayramov acknowledged: “The main challenges here are that there are many cities, but the number of consumers is still small, and reconstruction requires significant funds. Despite this, the state budget will continue to support the full formation of infrastructure in Garabagh and East Zangazur.” This reflects the reality that economic revitalization is a long-term process requiring patience and sustained investment.

According to the State Statistics Committee, in January alone, 2 billion 275 million 641 thousand manats were invested in fixed capital in the Garabagh economic region, with the majority spent on construction and installation works. Significant allocations were made across districts such as Khankendi, Agdam, Fuzuli, and Shusha, underscoring the scale of reconstruction.

Similarly, in East Zangazur, 2 billion 811 million 671 thousand manats were invested in fixed capital in January, with 2 billion 763 million 126 thousand manats directed toward construction and installation works. Districts such as Kalbajar, Lachin, and Zangilan received substantial investments, reflecting the government’s balanced approach to regional development.