An industrial park is a territory equipped with the necessary infrastructure and management bodies for carrying out entrepreneurial activity, used for the production of competitive products and provision of services through the application of modern technologies, and contributing to the efficient operation and development of entrepreneurs.
In order to improve the management of industrial parks, industrial districts, and agro-parks in the country, the
Economic Zones Development Agency was established by the
Decree of the President of the Republic of Azerbaijan dated January 22, 2021. The main purpose of the Agency is to organize, manage, and develop industrial parks (except Balakhani Industrial Park), industrial districts (except those established in the Nakhchivan Autonomous Republic), and agro-parks, as well as to prepare and ensure the implementation of relevant measures, including state support mechanisms in this area.
The objectives of establishing industrial parks are as follows:
• development of competitive industrial production based on innovative and high technologies, creation of favorable conditions for service provision, and support for entrepreneurship in this field;
• ensuring sustainable development of the economy, including the non-oil sector;
• increasing the country’s attractiveness for local and foreign investments;
• increasing employment of the working-age population in the production sector.
In accordance with the legislation, the following incentive measures are applied in industrial parks:
• tax and customs incentives (in accordance with the Tax Code of the Republic of Azerbaijan and the Law “On Customs Tariffs,” residents of industrial parks are exempt, for a period of 10 years from the date of registration, from property tax, land tax, income or profit tax, VAT on the import of machinery, technological equipment and installations used for production purposes, and from customs duties for a period of 10 years. The 10-year exemption from customs duties has been applied since January 1, 2023, based on amendments to the Law “On Customs Tariffs” dated December 30, 2022. In previous years, the exemption period was 7 years);
• provision of infrastructure for industrial parks;
• determination of land lease fees at a minimum level;
• simplification of administrative procedures;
• organization of services for the efficient implementation of entrepreneurial activity.
In addition to the mentioned tax and customs benefits, a number of incentive measures are implemented for entrepreneurs operating in the territories liberated from occupation:
• preferential bank loans (up to 90% state guarantee, 10% subsidy);
• 20% cashback on utility payments;
• exemption from tax on dividend income;
• state subsidies for social insurance payments;
• full exemption from taxes on profit and capital repatriation;
• customs and VAT incentives on raw material imports (based on the list approved by the Cabinet of Ministers).
The Sumgait Industrial Park was established by the
Decree of the President of the Republic of Azerbaijan dated December 21, 2011. It is intended for the establishment of enterprises engaged in the production and processing of competitive products (works and services) in petrochemical and other priority industrial sectors. The territory of the park covers 640 hectares.
As the largest industrial zone in the country and the region, 40 enterprises have been granted resident status in the Sumgait Industrial Park, and the number of operating enterprises has reached 30.
A
Vocational Training Center operating under the Economic Zones Development Agency also provides professional education in various fields.
The Balakhani Industrial Park was established in Baku by the
Order of the President dated December 28, 2011 (No. 1947). The managing organization is “Tamiz Shahar” OJSC. In total, 28 residents have been registered, of which 21 have started operations. The main objective of the park is to create favorable conditions for entrepreneurs and investors interested in recycling activities.
The Garadagh Industrial Park was established by the Presidential
Order dated June 3, 2015 (No. 1255) in the Garadagh district of Baku. It has one resident, “Baku Shipyard” LLC.
The Mingachevir Industrial Park was established by the Presidential
Order dated February 26, 2015 (No. 1077). Currently, 2 business entities have been granted resident status, and 1 enterprise is operational.
The Pirallahi Industrial Park was established by the Presidential
Order dated September 14, 2016, on an area of 30 hectares to develop the pharmaceutical industry. Currently, 7 enterprises are registered as residents, of which 2 have started operations.
To support the revival of Garabagh and the development of industrial potential, the Aghdam Industrial Park was established by the Presidential
Decree dated May 28, 2021, covering 190 hectares. Currently, 38 business entities have resident status and 5 have non-resident status, with 13 enterprises operating.
The “Araz Valley Economic Zone” Industrial Park, located in a logistically advantageous area, was established by the Presidential
Decree dated October 4, 2021, covering 200 hectares. Currently, 19 business entities have resident status and 3 have non-resident status, with 3 enterprises operating.
The Hajigabul Industrial Park was established by the Presidential
Decree dated June 12, 2024, covering 60 hectares. Currently, 13 business entities have resident status and 5 have non-resident status, with 13 enterprises operating.
It should be noted that the Nakhchivan Industrial Park was established by the Presidential
Decree dated December 5, 2024.
Additionally, the West Industrial Park was established in the territories of Ganja city and Shamkir district by the Presidential
Decree dated January 15, 2026.
At present, 143 business entities are registered as residents and 13 as non-residents in the industrial parks of Sumgait, Hajigabul, Mingachevir, Garadagh, Pirallahi, Balakhani, Aghdam, and the “Araz Valley Economic Zone.” Of these, 83 have already started operations.
As a result of VAT and customs incentives applied in industrial parks managed by the Economic Zones Development Agency, residents have received 1,995 supporting documents to date, saving more than ₼547 million. In 2025, 400 supporting documents were issued, resulting in savings of over ₼42 million.
