Industrial zones established in Karabakh

In accordance with the priority of revitalization of Karabakh, with the purpose of realizing the industrial potential of the region, reintegration into the country's economy, and ensuring the employment of the population Aghdam Industrial Park was established in the city of Aghdam, and "Araz Valley Economic Zone" Industrial Park was established in Jabrayil district by the relevant decrees of the President of the Republic of Azerbaijan. Stimulating measures for entrepreneurs are applied in industrial parks operating in de-occupied territories. Thus, residents of industrial parks are provided with ready-made infrastructure - gas, electricity, water, sewage, fiber-optic, internal road and railway lines - at the expense of state funds. They are exempt from property, land and income taxes for 10 years from the date of their registration, as well as from VAT and customs duties when importing machinery, technological equipment and facilities for production purposes. Besides, additional concessions are also applied in the existing industrial parks in the liberated areas. These include:

 

  • Special preferential bank loans (up to 90% state guarantee, 10% subsidy);
  • 20% cashback on utilities;
  • Tax exemption on dividend income;
  • State subsidy for social insurance payments;
  • Absolute exemption of profit tax and capital repatriation;
  • Customs duties and VAT incentives on the import of raw materials (according to the list determined by the Cabinet of Ministers).

 

Aghdam Industrial Park

 

 

Aghdam Industrial Park was established by the decree of the President of the Republic of Azerbaijan dated May 28, 2021. The priority areas of Aghdam Industrial Park are determined as production of construction materials, packaging of agricultural products, canned fruits and vegetables, meat and dairy products, feed, fertilizer production and processing, as well as service areas, refrigerators, etc. Currently, 28 business entities have been granted residency status in the Industrial Park, and 4 entrepreneurs have been granted non-residency status. There are currently 9 enterprises operating in the park.

 

 

"Araz Valley Economic Zone" Industrial Park

 

 

"Araz Valley Economic Zone" Industrial Park was established by the decree of the President of the Republic of Azerbaijan dated October 4, 2021. The park covers an area of 200 hectares. The establishment of logistics and trade center, warehouse complexes, wholesale and retail facilities, TIR-parks, customs warehouses, fuel filling stations, car and other equipment repair stations has been determined as the main activity direction of the Industrial Park. Currently, 13 business entities have been granted residency status in the Industrial Park, and 1 entrepreneur has been granted non-residency status. There is currently 1 enterprise operating in the park.