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Tuesday June 28 2022

Agency for Development of Economic Zones preparing package of benefits for residents of industrial parks in Azerbaijan’s Karabakh

24 May 2022 13:30 (UTC+04:00)
Agency for Development of Economic Zones preparing package of benefits for residents of industrial parks in Azerbaijan’s Karabakh

By Trend

A number of additional benefits are planned to be applied in industrial parks created in Azerbaijan’s liberated territories (Aghdam industrial park and Araz Valley Economic Zone industrial park), Chairman of Azerbaijan’s Agency for Development of Economic Zones Elshad Nuriyev told Trend.

Nuriyev said that according to the order of Azerbaijan’s President Ilham Aliyev dated December 10, 2021 on certain measures to accelerate economic development in the liberated territories from Armenian occupation, entrepreneurs who carry out their activities there will be provided with additional benefits.

“Here we are talking about customs and tax incentives for the import of materials, benefits related to production activities, greater access to financial resources and government support. Such a package of benefits is being prepared and will be submitted to the Cabinet of Ministers of Azerbaijan Republic for further consideration,” the chairman said.

“Residents of industrial parks in the liberated territories will be able to take advantage of both existing benefits and others that are being developed," he added.

According to Nuriyev, exemption from income tax and a number of other incentives contribute to the growth of entrepreneurs' interest in starting a business on the territory of industrial zones.

"About 104 business entities have received the status of a resident of industrial zones, 58 of them have already started work. In addition, they have invested 6.4 billion manat ($3.7 billion) in industrial zones and created more than 10,000 workplaces,” Nuriyev noted.

“It is planned to invest about 400 million manat ($235.3 million) in industrial zones additionally, and create more than 2,600 new workplaces at the next stage, within the framework of existing projects," he added.

Nuriyev also noted that UAE’s Expert Services FZE (with capital from the UAE) is implementing a project to create a heavy equipment maintenance center on the territory of Aghdam industrial park.

"Today, nine residents are registered in this industrial park. They are expected to invest more than 50 million manat ($29.4 million) and create more than 1,000 workplaces in accordance with the business plan of these residents,” he added.

“These entrepreneurs plan to carry out activities for the production of synthetic carpets, streetlamps, products from polymers, overalls, assembly of reinforced concrete products," the chairman said.

Nuriev also added that a number of goods previously imported to Azerbaijan are already being produced in the industrial zones of the country.

"Earlier, we imported nitrogen fertilizers, polymers, ferroalloys, tobacco products, agrochemicals, medical masks, syringes, textiles and other products. Today, all these goods and some other products are produced in the Azerbaijani market and exported abroad," chairman emphasized.

He also noted that more than 6.5 billion manat ($3.8 billion) have been produced in the industrial zones of Azerbaijan.

"The export of goods by industrial zones amounted to 2.1 billion manat ($1.2 billion, about 32 percent of the total volume). The production and export indicators of industrial zones are growing annually. Products worth 373 million manat ($219.4 million) were produced in Azerbaijan’s industrial zones in first quarter 2021, and in the same period 2022 - by 681 million manat ($400.5 million, an increase of 82.6 percent),” Nuriyev said.

“Exports increased by 2.7 times in the first quarter of 2022 compared to the same period in 2021 and amounted to 318 million manat ($187.05 million). Products manufactured in industrial zones are exported to more than 40 countries of the world. The share of products manufactured in industrial zones in the total volume of production in Azerbaijan amounted to 14.8 percent, and the share of exports accounted for 36.3 percent, which exceeds the figure for the same period in 2021 by 198.1 million manat ($116.5 million)," he added.

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