INDUSTRIAL FRAMEWORK

Azerbaijan’s industrialisation model is gradually moving beyond isolated initiatives, evolving into a systemic platform for non-oil and gas growth. Industrial zones, in particular, are becoming a key instrument for structural economic transformation.

The results presented at the press conference on the activities of the Agency for Economic Zone Development for 2025 confirm that industrial parks and districts are emerging as crucial drivers of non-oil growth, exports, and regional employment. The model, based on investment incentives and infrastructure support, shows steady momentum.

Investment base

By the end of 2025, actual investments committed to industrial zones reached ₼7 billion, with a total project portfolio exceeding ₼8.7 billion. Last year alone saw investments of ₼136 million.

As stated by Seymur Adigozalov, chairman of the Agency for Economic Zone Development, foreign investment volume continues to grow: “While it amounted to ₼10.4 million in 2016, it rose to ₼87.9 million in 2025.” According to him, this reflects the increasing appeal of economic zones to international investors. Entrepreneurs from China, Türkiye, the United Arab Emirates, Germany, Bulgaria, Russia, and Pakistan have invested in these zones.

Currently, 138 residents and 13 non-residents are registered in industrial zones; in 2025 alone, 25 new residents and 4 non-residents joined. Over the entire period, 82 enterprises commenced operations in these zones, including 14 in 2025. More than 9,700 permanent jobs have been created, with 1,100 established last year.

Furthermore, from 2015 to 2025, products worth over ₼19 billion have been produced in industrial zones, with exports exceeding ₼6 billion. “In 2025 alone, total sales reached approximately ₼4 billion, including exports worth ₼1.2 billion,” noted the agency head.

Products from residents are supplied to more than 70 countries worldwide, indicating expanding external markets and integration into global value chains.

The contribution to the non-oil sector is particularly significant. According to Adigozalov, last year industrial zones accounted for 19.1% of non-oil production and 33.9% of non-oil exports. Thus, one-third of all non-oil export flows originate from industrial parks. Growth in overall production by 21.1% and export increase by 13.4% confirm the resilience of this trend.

Tax and customs benefits remain an additional incentive. As a result of these concessions, residents saved ₼547 million, including ₼42 million in 2025 alone. This enhances the investment attractiveness of the sites and reduces the costs of launching new manufacturing facilities.

Regional focus

The flagship of industrialisation remains the Sumgayit industrial park—the largest in the South Caucasus. In 2025 it produced goods worth ₼2.2 billion, with exports amounting to ₼1.1 billion. Currently, 40 residents are registered there; the park maintains its leading position within the country’s non-oil export structure.

“These figures clearly demonstrate the park’s leading role in overall industrial output and non-oil exports,” emphasised Adigozalov.

Simultaneously, new growth centres are gaining strength, especially in liberated territories. For example, the Agdam industrial park has attracted investments totalling ₼145.8 million; it hosts 32 residents and 5 non-residents and operates 13 enterprises. “This park ranks second nationwide by number of residents. About 1,000 permanent jobs have been created here, with priority given to local personnel during recruitment,” the agency head reported. Products manufactured in the park serve not only domestic markets but are already being exported; total sales have reached ₼1.4 billion, including ₼62.3 million from exports to date.

More than ₼43.8 million has been invested in the Araz Valley economic zone in the Jebrail district; it has registered 19 residents and 3 non-residents.

Infrastructure expansion continues at Mingachevir, Garadagh, Pirallahi and Hadjigabul industrial parks, as well as at Neftchala, Sabirabad and Masalli districts. Infrastructure is also being developed at the Nakhchivan industrial park, established at the end of 2024; registration of its first resident is expected this year.

The Western industrial park has also been established with infrastructure works underway.

In 2026, 16 new enterprises are expected to launch operations and foundations will be laid for two more. In January President Ilham Aliyev opened two enterprises at Sumgait industrial park and laid foundations for a new manufacturing facility—highlighting the strategic nature of industrial policy.

The Yevlakh pilot agropark covering 2,807 hectares stands apart as the country’s first agropark involving small and medium-scale farmers. Current investments have reached ₼59.4 million. This agropark aims to develop intensive fruit orchards, livestock and poultry farms, and processing plants. “35 business entities registered as residents have created 185 permanent and 593 seasonal jobs,” emphasised Adigozalov.

He reminded that the primary goal of all these clusters is to become strategic centres ensuring long-term and sustainable economic development for the country. If current momentum continues, industrial zones will firmly establish themselves as the backbone of Azerbaijan’s non-oil growth model.