The creation of industrial districts in the country was defined by the Decree of the President of the Republic of Azerbaijan dated October 8, 2014, No. 288 “On the establishment and organization of industrial districts.” The purpose of creating industrial districts is to ensure favorable conditions for the development of small and medium-sized entrepreneurs operating in industrial and service sectors and to increase employment of the population in production and service areas.
It has been determined by the Decree that an industrial district is a territory equipped with the necessary infrastructure for carrying out entrepreneurial activity, used by small and medium-sized entrepreneurs for the production of goods and provision of services. Industrial districts are of great importance in terms of reducing infrastructure costs in organizing production processes, strengthening cooperation ties, developing small and medium-sized entrepreneurship, and addressing other such issues. In order to regulate issues related to the creation, management of industrial districts and the implementation of entrepreneurial activity within them, the “Model Regulation on Industrial Districts” was approved by the Resolution of the Cabinet of Ministers of the Republic of Azerbaijan dated May 13, 2015, No. 186. In accordance with the “Model Regulation on Industrial Districts,” the following incentive measures are applied in industrial districts to support small and medium-sized entrepreneurship:
Determination of lower limits for rental fees of land plots and buildings based on Article 14.5 of the Law of the Republic of Azerbaijan “On Land Lease” and the second paragraph of Article 8.1 of the Law of the Republic of Azerbaijan “On Lease”;
provision of concessional loans;
simplification of administrative procedures;
organization of services for the efficient implementation of entrepreneurial activity.
In industrial districts, land plots with ready infrastructure provided at the expense of state funds, as well as ready-built facilities, are made available for use by entrepreneurs. Entrepreneurs can also benefit from a number of tax and customs incentives by obtaining an “Investment Promotion” document from the Ministry of Economy.
By the Order of the President of the Republic of Azerbaijan dated February 2, 2015, the Neftchala Industrial District was established on an area of 10 hectares and inaugurated on September 24, 2017. Out of 6 registered enterprises operating in the fields of automobile production, fish feed, processing and canning of fish and seafood, organic liquid fertilizers, electrodes, soy and extruded cottonseed cake, 5 are operational. As a result of the creation of production areas by the participants of the industrial district, more than 120 jobs have been created in total.
The Masalli Industrial District was inaugurated on September 18, 2018. The necessary external and internal infrastructure for efficient entrepreneurial activity has been established here, including electricity and heat energy, gas, water, sewage, communication, transport, fire protection, production, administrative, social and other infrastructure facilities. At the same time, the first regional SME Friend (KOB Dostu) service has started operating to provide various types of support in accordance with sustainable development requirements and to ensure the protection of the rights of entrepreneurs operating in the industrial district. Currently, 9 enterprises have been registered as participants in the industrial district made available for use by business entities. Already 6 enterprises have started production activities. More than 70 jobs have been created in the industrial district.
By the Order of the President of the Republic of Azerbaijan dated November 27, 2017, the Sabirabad Industrial District was established, and its foundation was laid by the President of the Republic of Azerbaijan on November 28, 2017. Construction works have been started in the industrial district. Based on applications from entrepreneurs interested in operating in this industrial district, 8 enterprises have been registered as participants and have started their activities. In total, more than 120 new jobs have been created in the industrial district.
In addition, the Sharur Industrial District was established by the Decree of the President of the Republic of Azerbaijan dated September 13, 2019, No. 831. Currently, construction works are underway in the industrial district.
Currently, 24 residents have been registered in industrial districts, of which 20 have started operating.
In total, enterprises have invested 7.06 billion manats in industrial zones (parks and districts), as a result of which more than 11,100 jobs have actually been created. In addition, under existing projects, it is planned to invest more than 1.7 billion manats and create more than 9,500 permanent jobs. To date, residents have produced goods worth 19.4 billion manats, of which 6.15 billion manats account for exports. In 2025, goods worth 4 billion manats were produced, of which 1.2 billion manats were exported.
