On December 5, the President of the Republic of Azerbaijan signed a decree establishing the Nakhchivan Industrial Park, a strategically significant project aimed at accelerating the economic development of the Nakhchivan Autonomous Republic, integrating its potential into the national economy, and advancing the country’s industrialization policy. This initiative envisions the creation of a modern industrial zone that will serve as a catalyst for regional growth, attract investments, boost employment, and support the production of competitive goods.
The industrial park will cover an area of 310 hectares, equipped with all the necessary infrastructure, including energy supply, water supply, sewage systems, telecommunications, transportation networks, and other essential facilities to ensure uninterrupted operations for businesses. The initial phase of the project has already commenced, with 500,000 manat allocated from the President’s Reserve Fund in the 2024 budget for design and infrastructure development. The land has been leased to the Economic Zones Development Agency, ensuring efficient management and optimal organization of the park’s operations.
A key feature of the new industrial park is the provision of significant tax and customs incentives for its residents. For 10 years, they will be exempt from corporate income tax, property tax, land tax, and VAT and customs duties on imported equipment. These measures create favorable conditions for business development, stimulate entrepreneurial activity, and attract both domestic and foreign investors. Additionally, all activities within the park will adhere to strict environmental standards, reflecting a commitment to sustainable development and the adoption of modern technologies.
The Nakhchivan region offers numerous advantages for the implementation of such a project. Approximately 90% of the region’s agricultural output is produced in the Aras River valley, providing a reliable raw material base for industrial enterprises engaged in processing and value-added production. The integration of agriculture and industry ensures a seamless supply chain. Moreover, the park’s strategic location near the Nakhchivan-Sadarak highway and the anticipated opening of the Zangezur Corridor present unique logistical opportunities for export and import trade. These factors will enhance the region’s connectivity to international trade routes, solidifying its role in the global economic network.
Since 2015, industrial zones have become a cornerstone of Azerbaijan’s national economic strategy. The total value of goods produced in these zones has reached 14.5 billion manat, including 4.7 billion manat in exports. In 2023 alone, industrial production amounted to 2.4 billion manat, with exports accounting for 801.1 million manat. Products from these zones are now exported to over 70 countries, expanding Azerbaijan’s export geography. The Nakhchivan Industrial Park will become a vital addition to this successful framework, strengthening the country’s position in international markets.
The establishment of the park is also expected to significantly impact employment levels in the region. Currently, Azerbaijan’s industrial zones have created over 10,580 permanent jobs, with nearly 500 new positions added in the first nine months of 2024 alone. The park is set to generate numerous new jobs, enhancing employment opportunities and improving the quality of life for the Nakhchivan population. Local specialists will be prioritized in staffing, contributing to the development of the region’s human capital.
The industrial park will play a pivotal role in implementing the state program for the socio-economic development of the Nakhchivan Autonomous Republic for 2023–2027. This program emphasizes support for the non-oil sector, the introduction of innovations, and the creation of favorable conditions for businesses. The park will provide a platform for the growth of small and medium-sized enterprises, the adoption of advanced technologies, and the expansion of export potential. This project is expected to provide a significant boost to Nakhchivan’s economic growth, enhancing its independence and prominence at both regional and international levels.
The creation of the Nakhchivan Industrial Park underscores Azerbaijan’s commitment to diversifying its economy and promoting sustainable development. This project not only stimulates industrial production and expands the country’s export potential but also addresses social challenges such as improving living standards and increasing employment. In the long term, the park is poised to become a catalyst for transformative changes in the region’s economy, laying the foundation for a stable and competitive future.
