BAKU, Azerbaijan,
March 5. The inclusion of new enterprises in the
'Support for the development of the digital economy' program, the
establishment of Azerbaijan's first industrial cluster within the
'Transition to industrial clusters' initiative, and the expansion
of this model are among the priority goals, the Executive Director
of the Fourth Industrial Revolution Analysis and Coordination
Center (C4IR), Fariz Jafarov, said in an interview with Trend.
He discussed the results achieved last year, the 'Support for
the development of the digital economy' program, the development of
human capital, C4IR's commitments in the implementation of the
'Strategy for the development of digital economy in Azerbaijan for
2026-2029', and outlined the future goals.
Jafarov pointed out that recent years have seen a significant
turn in the tide towards a new chapter of the Fourth Industrial
Revolution. According to him, the current global debate is no
longer about whether technologies exist, but rather about how
extensively they are implemented, how they are managed, and how
they are converted into economic value.
"The application of artificial intelligence, big data analysis,
data-driven decision-making, the new phase of automation, and green
technologies have become essential tools of global economic
competition.
In this global context, 2025 became an important transition year
for Azerbaijan as well. During the year, the adoption of the
'Artificial intelligence strategy of Azerbaijan for 2025-2028' and
the 'Strategy for the development of digital economy in Azerbaijan
for 2026-2029' marked the country’s first effort to place its
digital and technological transformation in a unified, measurable,
and results-oriented framework.
For C4IR, 2025 accelerated the transition from conceptualization
to implementation. Our main role is to build bridges between global
trends and national priorities. Throughout the past year, we
continued to formulate practical implementation mechanisms for the
real sector and systematized the application of technology at the
level of human capital and management," he said.
Jafarov emphasized that one of C4IR's key strategic results in
2025 was the start of the process of joining the Digital Economy
Framework's 'Transition to industrial clusters' initiative.
"This initiative promotes the shift from an individual company
approach to a cluster-based approach in industrial development.
That is, state agencies, enterprises, suppliers, technology
companies, startups, and universities work together within a
coordinated industrial cluster framework. For instance, a unified
digital platform, shared data exchange, joint IT and automation
solutions, and coordinated staff training are implemented for all
enterprises within an industrial park. As a result, the transition
to Industry 4.0 in industrial parks and economic zones is
accelerated, ensuring the systematic application of technologies
and increasing digital productivity in the real sector.
As part of this initiative, the Sumgayit Industrial Park was
designated as a pilot cluster, the NextGen industrial cluster
concept was developed, and C4IR signed a memorandum of intent with
the Ministry of Economy’s Economic Zones Development Agency (EZDA),
SOCAR Carbamide, and SOCAR Polymer, marking the 40th cluster
worldwide. These steps are crucial for the decarbonization of
industrial clusters, the large-scale application of Industry 4.0
technologies through increased digital preparedness, and
integration with international industrial standards. Azerbaijan
will benefit from studying the cluster experiences of the world’s
most advanced countries," he explained.
The executive director recalled that C4IR's activities are
carried out in five main areas: the development and implementation
of sectoral strategies, the stimulation of technology application,
the development of human capital, international experience
exchange, and awareness-raising and promotion.
"One key achievement in the development and implementation of
sectoral strategies is the approval of the 'Strategy for the
development of digital economy in Azerbaijan for 2026-2029' by the
President of Azerbaijan Ilham Aliyev on December 10, 2025. This
strategy covers three goals, nine priority areas, and 50
initiatives, focusing on systematic transformation in government,
business, and society. This document strengthens the institutional
framework for data-driven management and the digital transformation
of the economy in government administration.
Another important area was the launch of the 'Support for the
development of the digital economy' program. This program is based
on the 'Twin transition' approach—technological and green
transition—and focuses on the practical assessment and
implementation of the technological readiness of industrial
enterprises. In the pilot phase, three enterprises participated,
and in the main phase, 15 enterprises are involved. The goal is to
achieve 5-8% EBITDA (Earnings Before Interest, Taxes, Depreciation,
and Amortization) growth and a 10-30% rise in efficiency by
2030.
At the same time, preparations have begun for the launch of the
New Generation Technologies Center (Industry 4.0 Center), which
will provide the 'earn and apply' model for the real sector.
The 'Azerbaijan Skills Accelerator' project was launched in
April 2025. This initiative, in cooperation with the World Economic
Forum, aims to systematically identify current and future skills
requirements in the labor market and train specialized personnel to
meet the real sector's needs. The co-chairs of the platform are the
Minister of Economy Mikayil Jabbarov, the Minister of Science and
Education Emin Amrullayev, SOCAR President Rovshan Najaf, and the
CEO of PASHA Holding, Jalal Gasimov. C4IR coordinates the
initiative, with nearly 100 local companies joining as members.
In essence, the Azerbaijan Skills Accelerator is a national
platform based on a government-business-education partnership model
that systematically measures skill gaps, launches fast-track
training, and retraining mechanisms in priority areas. The goal is
to accelerate the development of digital and technical skills,
ensure social inclusivity, and strengthen the culture of lifelong
learning.
Globally, under the World Economic Forum's initiative, about 50
national-level skills accelerators or similar platforms within the
'Reskilling Revolution' framework are operational in various
countries. Azerbaijan is among the countries that have joined this
initiative and developed its institutional model.
Another initiative for human capital development, the C4IR
Academy (Fourth Industrial Revolution Academy), began in April 2025
and is actively continuing. The program aims to involve 70,000
citizens who will join over 18,000 courses on the 'Coursera'
platform, focusing on improving knowledge in artificial
intelligence, data analytics, business, and technological skills.
Over 2,500 courses have been translated into Azerbaijani through
artificial intelligence, increasing accessibility for a broader
audience," he noted.
In his interview, Jafarov also discussed the 'Support for the
development of the digital economy' program. He pointed out that
the program focuses on practical results.
"In 2025, 15 local large, medium, and small industrial
enterprises from the sectors of industry, construction, metallurgy,
and retail joined the program. The technological readiness, digital
potential, and sustainable development diagnostics have already
been completed in these enterprises. Individual roadmaps for
technological transformation have been prepared and presented in
business plan format. The companies 'METAK', 'Azerfloat', and 'STP
Global Cable', which joined the program in the pilot phase, have
already started implementing their roadmaps. This means the program
is not a paper-based assessment but a real transformation tool.
In 2026, new enterprises are planned to be included in the
program. The participation is completely free of charge, and
industrial enterprises can obtain detailed information about the
program via the industry4.az website. Our goal is to ensure that as
many local companies as possible join this transformation process
systematically and benefit from the program," he said.
Jafarov also touched on the 'Azerbaijan Skills Accelerator'
project, which was kicked off in partnership with the Ministry of
Economy and the World Economic Forum. He pointed out that the
growth of the digital economy, the rising tide of digitalization in
local industries, and the use of cutting-edge technologies are
essential for the sustainable and competitive advancement of the
national economy.
"In this context, the World Economic Forum’s initiative to
identify current and future labor market demands, eliminate
existing skill gaps, and stimulate the involvement of the private
sector in training and education led to the launch of the Skills
Accelerator in Azerbaijan. This collaboration is crucial for
strategically developing human capital in Azerbaijan and preparing
for the future demands of the labor market.
The project will systematically identify existing and emerging
skill gaps through detailed analyses, and targeted action plans
will be developed to address these gaps. This approach ensures that
the planned activities are not random but are shaped based on the
needs of the real sector. The accelerator will enhance
collaboration between the public and private sectors, promoting the
development of flexible and practical skills that meet employers’
requirements. Digital skills, analytical thinking, technological
literacy, and specific skills will be prioritized for preparing for
future professions.
The project will enable a faster adaptation to the changing
labor market through short-term specialization models, increasing
employment opportunities for youth, and providing the existing
workforce with opportunities to update their skills. Involving
regions in the process will contribute to the more balanced and
inclusive development of human capital. Ultimately, the 'Azerbaijan
skills accelerator' will contribute to the creation of a modern,
competitive, and sustainable skills ecosystem, laying a strong
foundation for long-term economic development," he delineated.
In response to a question about the specific role of C4IR in the
implementation of the 'Strategy for the development of the digital
economy in Azerbaijan for 2026-2029', the executive director said
that this document is the key framework for systematic and
measurable acceleration of digital transformation in the national
economy.
"The strategy identifies 50 initiatives in total, and from
these, eight 'key initiatives' have been prioritized due to their
high impact.
C4IR's role in the preparation and implementation of this
strategy mainly involves ensuring coordination between the
government, businesses, and international partners, creating pilot
mechanisms for the real sector, and supporting the practical
implementation of initiatives.
As a results-oriented document, the strategy outlines concrete
indicators. The main targets include reaching 300 enterprises
participating in digital transformation programs by 2029, creating
250 new startups, enabling 200 SMEs to access digital markets, and
training 40,000 people in digital skills.
The strategy also outlines measurable economic outcomes,
including a 5-8% EBITDA increase and a 10-30% rise in operational
efficiency in enterprises that undergo digital transformation," he
clarified.
At the conclusion, Jafarov revealed C4IR's key priorities,
technological directions, and expected targets for 2026 and
beyond.
"Since 2026, C4IR’s priorities will be directly linked to the
implementation of the 'Strategy for the development of digital
economy in Azerbaijan for 2026-2029' and will focus on the
practical implementation of the key initiatives outlined in this
strategy. These priorities will include the expansion of the
application of Fourth Industrial Revolution technologies, such as
artificial intelligence, data analytics, digital twins, and
generative artificial intelligence, across various sectors of the
national economy. There will also be a focus on the implementation
of technological transformation programs for enterprises and the
formation of data-driven decision-making mechanisms.
At the same time, the development of technological skills, the
strengthening of the startup and innovation ecosystem, and the
application of transformation models based on Key Performance
Indicators (KPIs) for industrial clusters and economic sectors are
also among the main objectives. This approach will reinforce C4IR's
role as an executive platform that transfers international
experience to the local economy, ensuring Azerbaijan's
institutional and sustainable integration into the digital economy
and the Fourth Industrial Revolution.
C4IR’s main priorities are to accelerate the country’s
technological and industrial transformation, strengthen human
capital, and turn technology into real economic value. In this
period, artificial intelligence, Industry 4.0 technologies,
data-driven management, and the development of the innovation
ecosystem will be the main technological directions.
In particular, the inclusion of new enterprises in the 'Support
for the development of the digital economy' program, the formation
of Azerbaijan’s first industrial cluster within the 'Transition to
industrial clusters' initiative, and the expansion of this model
will be key targets. At the same time, continuing the 'C4IR Academy
– National Program' for human capital development is of particular
importance. Since the launch of the 'National Program' in April
2025, 60,000 people have joined over 250,000 courses on the
'Coursera' platform free of charge. They have successfully
completed over 90,000 courses and obtained international
certificates. Talks are underway with partners to extend the
'National Program' for another year, which will provide additional
opportunities for tens of thousands of citizens to prepare for
future professions," Jafarov concluded.
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