Output in Industrial Zones Increased by 12.2%
In the first quarter of 2026, the volume of production in industrial zones managed by the Economic Zones Development Agency (EZDA) increased by 12.2% compared to the same period of the previous year, reaching AZN 883 million. During this period, products worth AZN 259 million were exported, while AZN 158.7 million was invested in the industrial zones. A record increase in production was registered in the Mingachevir Industrial Park, where output grew by 77% and exports increased by more than 78%. Overall, AZN 159 million has been invested in projects implemented within the park, creating 550 permanent jobs.
During the reporting period, the production capacity of Sumgait Industrial Park expanded, generating more than AZN 100 million in added value. New residents also commenced operations, and MET-AK LLC was granted resident status in Sumgait Industrial Park, which is managed by the Agency. To date, resident status has been granted to 39 business entities in Sumgait Industrial Park, with a total projected investment volume exceeding AZN 6.7 billion. More than AZN 5.6 billion has already been invested by resident companies.
Industrial Parks Contribute to the Development of the Non-Oil Sector
Industrial parks play a significant role in enhancing the country's economic potential, mobilizing resources that support the sustainable development of the non-oil sector, establishing competitive industrial enterprises based on modern technologies, and increasing employment in manufacturing.
Currently, Azerbaijan hosts the Sumgait, Balakhani, Garadagh, Pirallahi, Hajigabul, Mingachevir, Aghdam, and Araz Valley Economic Zone industrial parks. In accordance with presidential decrees, the Nakhchivan and Western Azerbaijan Industrial Parks are currently being established. These industrial parks are of strategic importance in expanding the country's economic opportunities, promoting sustainable non-oil sector development, mobilizing non-oil resources, fostering competitive industries based on advanced technologies, and creating new employment opportunities.
Following the establishment of these new entities, the total number of industrial parks in the country has reached ten. The new parks are expected to make a substantial contribution to the development of the non-oil industry through increased industrial exports. In addition, four industrial districts operate in Masalli, Neftchala, Sabirabad, and Sharur, playing an important role in mobilizing regional industrial potential and supporting local economic development.
Industrialization Era Begins in Karabakh and East Zangezur
The growing number of industrial facilities in Karabakh and East Zangezur, particularly the launch of operations by new residents in industrial parks, is accelerating the region's development and its reintegration into the national economy.
Currently, more than 40 residents with a total investment commitment exceeding AZN 350 million operate in Aghdam Industrial Park and the Araz Valley Economic Zone Industrial Park. To date, resident companies have invested more than AZN 90 million in these industrial parks.
The recent granting of resident status to Baku International Tobacco LLC in the Araz Valley Economic Zone Industrial Park has further expanded the park's scope of activity. The new resident plans to implement a tobacco products manufacturing project within the park. The project, valued at AZN 47 million, envisages not only supplying the domestic market but also exporting its products. In this industrial park alone, entrepreneurs have invested more than AZN 48.3 million to date, creating over 130 jobs.
These industrial facilities are already contributing to the rapid development of the liberated territories and accelerating their reintegration into the national economy.
On May 28, with the participation of President Ilham Aliyev, the Karabakh Textile House Limited Liability Company was inaugurated in the city of Khojaly. Equipped with Turkish and Chinese technologies, the enterprise will produce 1.4 million textile products annually. During the initial phase, the company will manufacture a range of home textile products, including bed linen, bedspreads, sofa covers, towels, and other items. Raw materials will primarily be sourced from the domestic market, while additional supplies will be imported from Türkiye, Uzbekistan, and China. In addition to meeting domestic demand, the company's products will also be exported.
Meanwhile, GP Safety LLC has launched a work gloves manufacturing facility in Khankendi with an annual production capacity of 25 million units. The products are primarily intended for the domestic market, with future plans to export to European markets. The enterprise will employ 35 people and represents an investment of AZN 3.5 million.
Development of the Industrial Sector Remains a Priority
Industrial parks and districts within industrial zones create new opportunities for expanding export-oriented production, developing innovative and competitive industries, and increasing employment in manufacturing.
One of the key priorities of Azerbaijan's economic policy is to further accelerate the development of the industrial sector, particularly the non-oil industry. To this end, a favorable business and investment environment has been established for residents of industrial zones.
To encourage investment, residents of industrial parks benefit from significant tax incentives for a period of ten years from the date of registration. These include exemptions from property, land, and profit taxes, as well as exemptions from VAT and customs duties on machinery, technological equipment, and installations imported for production purposes.
The "Socio-Economic Development Strategy of the Republic of Azerbaijan for 2022–2026" identifies industrial development as a strategic priority. The state will continue to actively support the creation of industrial infrastructure, establish new industrial parks and districts, and promote the export of domestically produced goods and services to international markets.
According to the Strategy, the non-oil and non-gas industry is expected to grow by an average of 8.4% annually. Industrial zones are projected to account for 15% of non-oil industrial production and 25% of non-oil industrial exports. With continued state support, the sector's sustainable integration into global value chains will be ensured, further strengthening the position of the non-oil sector as a key driver of Azerbaijan's economic growth.
