Azernews.Az

Ulviyya Poladova

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A favorable investment environment has been established in Azerbaijan, supported by political and economic stability, successful reforms, a strong legislative framework and other factors that contribute to the country’s growing investment appeal. Industrial zones operating across the country have created favorable and sustainable conditions for the development of highly competitive industrial production.

As part of these efforts, residents of industrial zones are able to operate in areas fully equipped by the state with essential engineering and communications infrastructure, including electricity, natural gas, water, roads, telecommunications and other services.

Residents of industrial parks also benefit from extensive tax and customs incentives. Companies are exempt from profit, property and land taxes for 10 years from the date of registration. In addition, machinery, technological equipment and installations imported for production purposes are exempt from value-added tax and customs duties for 10 years.

These and other incentives are helping maintain a steady flow of investment into Azerbaijan. According to the State Statistical Committee, investment in the country’s non-oil and gas sector increased by 1.9% in real terms in January-July compared with the same period last year, reaching 7.4033 billion manats (4.355 billion dollars).

Alongside attracting greater investment, Azerbaijan is placing particular emphasis on improving the selection and prioritization of investment projects and speeding up their implementation. This need has led to the creation of a new institutional mechanism within the country’s investment policy.

Under an order issued by the Cabinet of Ministers on June 1, 2026, a Commission was established to ensure the accelerated implementation of strategic investment projects of particular importance to the national economy. The commission is also tasked with introducing a unified approach to project planning and implementation and strengthening coordination between government institutions.

The initial list of strategic investment projects will be determined by the Ministry of Economy. A list of potential investment projects will then be submitted to the Commission for consideration.

The Commission will select and evaluate strategic investment projects under a "fast-track" mechanism, based on objective analytical criteria. The mechanism is expected to reduce the implementation period for major investment projects by approximately 30–40%.

The main purpose of the new mechanism is to ensure that strategically important investment projects are implemented through a more coordinated and unified approach. Large-scale investment projects typically involve a wide range of issues, requiring prompt and coordinated decisions related to land, infrastructure, energy supply, construction, environmental protection, customs, taxation, transportation and other areas.

For this reason, the inclusion of government institutions responsible for the economy, finance, energy, ecology, justice, labor, emergency situations, agriculture, digital development and transport, customs, urban planning and other fields in the Commission is particularly important.

Overall, the fast-track mechanism for strategic investment projects is expected to increase the efficiency and speed of project implementation. Combined with existing tax, customs and infrastructure incentives, the new approach is aimed at further strengthening Azerbaijan’s investment environment and supporting the development of large-scale projects in the country.