Azernews.Az

By Aynur Jafarova

Implementation of the second stage of development at the giant Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea and the Trans-Anatolian pipeline (TANAP) and Trans-Adriatic Pipeline (TAP) projects will contribute to the development of the country's economy in future.

Azerbaijan's macroeconomic stability and strong industrial potential create the right conditions for developing the industry in the country, Azerbaijani Economy and Industry Minister Shahin Mustafayev said in a recent interview on January 22.

The minister noted considerable work has been carried out to modernize energy infrastructures, and measures are underway to increase the country's energy production through alternative and renewable energy sources.

"The creation of modern transport infrastructure will ensure the access of local industrial products to the world markets. In this context, constructing and repairing highways and railways on the East-West and North-South international transport corridor, as well as constructing the Baku-Tbilisi-Kars railway and the largest port on the Caspian shore are of particular importance," Mustafayev said.

Another significant factor for developing the industry is the country's currency reserves, which opens up ample opportunities for executing large-scaled projects.

Azerbaijani President Ilham Aliyev signed a decree on January 10 to announce 2014 as the year of industry in Azerbaijan and instructed the Economy and Industry Ministry to develop a plan within a month.

The Cabinet of Ministers was also instructed to develop a draft program on the development of industry section in Azerbaijan in 2015-2020 within three months. Both documents should be handed over to the president.

Priorities of Azerbaijan's industrial policy

Mustafayev went on to note that Azerbaijan will continue to modernize the industry. The development of industry on the basis of innovations will be possible as a result of strengthening scientific and technological potentials and expanding education opportunities in the country.

"It is important to ensure that developing countries achieve economic growth based on productivity and form comparatively more advantageous production spheres," he said. "The use of innovative technologies in industrial enterprises will be stimulated and special and general industrial estates will be set up. Along with the development of non-oil processing industry, the formation of the industrial estate infrastructure in economic districts will be the main sphere of the state investment policy in the coming years."

The minister also mentioned increasing governmental support for industrial development will be one of the main priorities.

Promising industrial sectors

Touching on Azerbaijan's promising industrial sectors, Mustafayev said the aluminum industry will be developed, the production of first aluminum will increase, a technological chain for the production of end products will be established with the involvement of the private sector, and the export potential will be expanded.

He also noted along with developing and boosting the export potential of the traditional production spheres of the non-oil industry, including chemical industry, metallurgy, machinery construction, electro technology, electronics, light industry, and food industry, Azerbaijan will support the creation of new competitive spheres.

"Stimulating mechanisms will be applied to intensify local and foreign investment in the country's non-oil sector," he said.

The minister went on to say that given Azerbaijan's economic potential, including the industrial estates for processing petrochemical products in Sumgayit and domestic waste in Balakhani and producing metal (aluminum) products in Ganja, creating a special economic zone and industrial estates in every economic district is planned.