BAKU, Azerbaijan, June 18. Azerbaijan’s
industrial zones provide a favorable environment for the
development of export-oriented manufacturing, Deputy Economy
Minister Anar Akhundov said during a panel discussion held as part
of the 51st Annual Meeting of the Islamic Development Bank (IsDB)
Group, Trend's
correspondent reports from the event.
Speaking at the session titled "From more foreign direct
investment to better quality foreign direct investment: Promoting
investment for sustainable development", Akhundov highlighted the
country’s efforts to attract investment and boost economic
diversification.
According to the deputy minister, Azerbaijan has established a
network of industrial zones equipped with modern infrastructure and
competitive advantages, including in the country’s liberated
territories.
“Favorable conditions have been created in Azerbaijan’s
industrial zones for export-oriented production. These platforms
enable investors to enter the market more quickly and operate more
efficiently,” he said.
Akhundov noted that significant economic opportunities are
emerging in the liberated territories, where extensive state-funded
reconstruction and infrastructure projects are underway in the
Karabakh and East Zangezur economic regions.
“Modern infrastructure, reliable connectivity, and investment
incentives are creating new opportunities for private sector
participation,” he stated.
The deputy minister also pointed to the development potential of
the Nakhchivan Autonomous Republic, noting that 10-year tax
incentives will come into effect there from January 1, 2026.
“Nakhchivan’s location at the crossroads of Turkey, Iran, and
Armenia further enhances its strategic importance,” Akhundov
said.
He emphasized that Azerbaijan continues to strengthen its
investment climate through tax and customs incentives,
public-private partnership mechanisms, export promotion measures,
preferential financing programs, and targeted support for
entrepreneurship.
“The latest decree signed by President Ilham Aliyev further
reinforces these efforts,” he added.
Akhundov stressed that measures aimed at supporting non-oil
exports and reducing transport costs will help exporters access new
markets and improve the competitiveness of Azerbaijani products.
Enhanced credit guarantee and interest subsidy mechanisms will also
expand businesses’ access to financing, particularly in the
regions.
“These initiatives contribute to business growth, export
expansion, increased investment, innovation, and deeper integration
into global value chains,” he said.
The deputy minister also underscored the importance of
international cooperation, noting that national support mechanisms
are most effective when combined with international expertise,
financial instruments, and institutional partnerships.
In this regard, he highlighted Azerbaijan’s long-standing
cooperation with the Islamic Development Bank Group.
“Azerbaijan has been a member of the Islamic Development Bank
since 1992, and during this period the country has received more
than $1 billion in financing,” Akhundov noted.
He expressed confidence that the discussions held during the
panel would contribute to improving investment quality, advancing
sustainable development, and supporting economic diversification in
Azerbaijan and other partner countries.
