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Qabil Ashirov

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The private sector’s role in shaping Azerbaijan’s economy continues to expand, with economic diversification and entrepreneurship remaining at the core of the country’s long-term development strategy, Economy Minister Mikayil Jabbarov said in Baku, AzerNEWS reports.

Speaking at the event titled “Entrepreneurship Development is a Strong Economy,” Jabbarov noted that the non-oil and gas sector has become the main driver of economic growth, while the private sector plays a crucial role in diversification, foreign economic relations, and attracting international partners.

“Thanks to targeted economic policies, significant results have been achieved in diversification. The share of the non-oil and gas sector in GDP has increased substantially,” he said, adding that “the private sector plays a major role in economic diversification and in expanding Azerbaijan’s presence in global markets.”

The minister expressed appreciation for entrepreneurs contributing to the country’s development, stressing that the government continues to support small and medium-sized businesses through various mechanisms aimed at improving competitiveness and export capacity.

He also underlined that these support tools will be further expanded to ensure sustainable development amid global challenges.

Jabbarov emphasized that state support for the private sector is ongoing and will be broadened further. He pointed to a range of instruments already in place, including special industrial zones, tax and social contribution exemptions in liberated territories, utility support mechanisms, and subsidies on loan interest rates.

“These instruments have already proven their attractiveness and will continue to be developed,” he said.

He noted that preferential tax regimes are being proactively established, including in Alat Free Economic Zone, industrial parks, and other strategic areas. In addition, a 10-year tax exemption regime has been introduced in the Nakhchivan Autonomous Republic, which is expected to further stimulate regional economic activity.

The minister also highlighted the growing role of Azerbaijan’s transport and logistics sector, stating that it serves not only transit flows but primarily the strengthening of domestic production and export expansion to both nearby and distant markets.

According to him, two of the three key components of connectivity and trade frameworks have already been addressed, while the opening of the Zangezur Corridor is expected to significantly contribute to economic development.

Jabbarov also pointed to existing limitations in trade agreements that result in higher tariffs and customs duties, stressing the importance of expanding market access for Azerbaijani businesses.

To support exporters, he said the government is introducing new mechanisms to cover logistics costs and other export-related expenses.

The minister further emphasized that economic diversification remains a strategic priority, with the non-oil sector already becoming the main driver of growth.

“The role of the private sector in diversification, foreign economic policy, and attracting international investors is significant,” he said.

He added that sustainable development cannot be achieved through the domestic market alone and highlighted the importance of increasing productivity, investing in skilled labor, and upgrading technological capacity in enterprises.

Jabbarov also stressed that entrepreneurship is central to Azerbaijan’s economic future and thanked business leaders for their contribution, noting that government support for innovation-driven and export-oriented sectors will continue to expand.

He added that the country’s broader goal is to ensure that entrepreneurship remains resilient and competitive in the face of global economic challenges.

Finally, he noted that April 25 is officially observed as Entrepreneurs Day, reflecting the state’s long-standing commitment to supporting business development, following a presidential decree issued in 2016.