The state policy of the Republic of Azerbaijan provides for the comprehensive development of the economy, as well as the dynamic development and diversification of industry based on high technologies. As a result of this successful policy, hundreds of industrial enterprises of various profiles have been built and commissioned in recent years as part of state programs for the socio-economic development of the regions in the Republic of Azerbaijan, ensuring creation of thousands of new jobs. The establishment of industrial districts in the country was determined by the Presidential Decree no. 288 of the Republic of Azerbaijan dated October 8, 2014 "On establishment and organization of the activities of industrial districts". The establishment of the industrial district is aimed at creating favorable conditions for the development of small and medium-sized enterprises operating in industry and the service sector and intensifying employment in the production and services sector.
The Decree determines that an industrial district is a territory used by small and medium-sized businesses for the production of goods and services, which has the necessary infrastructure for entrepreneurial activities. Industrial districts are of great importance in terms of reducing infrastructure costs in organizing the production process, enhancing cooperation, developing small and medium-sized businesses, and so on. In a view to regulate issues related to the establishment, management and implementation of entrepreneurial activities in industrial districts, the Resolution no. 186 of the Cabinet of Ministers of the Republic of Azerbaijan dated May 13, 2015 approved the “Model Regulations for Industrial Districts”. In line with the “Model Regulations for Industrial Districts”, the following incentives to support small and medium-sized businesses are applied in industrial districts:
Neftchala Industrial District, established by the Presidential Decree of the Republic of Azerbaijan dated February 2, 2015 on a land plot of 10 hectares and launched on September 24, 2017, registered 9 enterprises engaged in the production of cars, feed for fish and poultry, irrigation systems, polyethylene irrigation pipes, welding materials, electrodes, trailers used in agriculture, plough, seeders and fertilizers. Following the creation of production facilities by the actors of the industrial district, a total of 221 jobs were created.
Masalli Industrial District was opened on September 18, 2018. The District has been equipped with external and internal infrastructure necessary for the effective implementation of business activities, including electricity, heat, gas, water supply, sewerage, communications, transport, fire fighting, industrial, administrative, social and other infrastructure facilities. Moreover, by interacting with business entities operating in the Industrial District, the first regional SMB Friend service was launched to provide them with a wide range of support and protection of their rights in line with the requirements of sustainable development. Currently, nine businesses have been registered as actors in the Industrial District put into operation to serve for economic entities, of which seven have started operating.
Construction work has been accomplished in Hajigabul Industrial District, created by the Presidential Decree of the Republic of Azerbaijan of July 25, 2017. In Hajigabul Industrial District, which attracted great interest of entrepreneurs, 5 out of 10 resident entities started working as a result of which 98 new jobs were created.
Sabirabad Industrial District was established by the Presidential Decree of the Republic of Azerbaijan dated November 27, 2017 and was founded on November 28, 2017 by the Azerbaijani President. Construction work in the Industrial District has begun. Following the appeals of entrepreneurs interested in doing business in this Industrial District, seven entities were registered as actors, while three businesses has already launched their activities. It is planned to create a total of about 130 new jobs in the Industrial District.
In addition, the Presidential Decree no. 831 of the Republic of Azerbaijan dated September 13, 2019 established Sharur Industrial District. Construction is currently underway in the Industrial District.
