Azerbaijan to invest over $700M into industrial parks

/By Azernews/

By Amina Nazarli

The government of Azerbaijan plans to invest more than 1.1 billion of manats (about $704 million) in development of the industrial parks.

Economy Minister Shahin Mustafayev made this remark at a ceremony for signing the United Nations-Azerbaijan framework agreement for 2016-2020.

“The government plans to allocate more than one billion manats (about $640 million) to Sumgayit Chemical Industrial Park, 30 million manats ($19 million) to Balakhani Industrial Park, 100 million manats ($64 million) to Mingachevir Industrial Park and 40 million manats (425 million) to Neftchala industrial quarter,” said the minister.  

Mustafayev noted that 17 entrepreneurs received the documents in the framework of the projects worth 180 million manats ($115 million).

"These measures will help to open thousands of working places,” the minister added.

Azerbaijan has entered a new phase of industrialization, whose ultimate goal is to turn the country into a strong industrial center of the region.

This step is important for the country to provide better employment opportunities, increase incomes, and form a highly skilled workforce. In recent years, the country opened Sumgayit, Balakhani, and Mingechevir industrial parks.

 To improve the investment attractiveness of the parks their residents are exempt from income tax, land tax and property tax for seven years. Also equipment and technology used in the park are exempt from value added tax (VAT).

Speaking at the event, UN Resident Coordinator Ghulam Isaczai said that the UN is ready to support reforms in Azerbaijan.

Referring to the signed deal, Isaczai said the document is being signed in an important period for Azerbaijan, when the government is carrying out reforms and is preparing a strategic roadmap for economic diversification.

He added the UN is ready to contribute to the implementation of these processes. “Our contribution includes political consultations and experience, and we can support the development of agricultural sector, healthcare, migration and others,” the UN Resident Coordinator emphasized.

The document will cover 2030 Agenda for Sustainable Development and set sustainable development goals.

Mustafayev said the framework document covers the strategic spheres of activity such as diversification of the economy, promotion of sustainable economic development, institutional capacity strengthening, effective public and social services, improving the management of environment, increasing sustainability against risks and natural disasters.