Sumgayit Chemical Industrial Park attracts huge investments

/By Azernews/

By Amina Nazarli

A modern style Sumgayit Chemical Industrial Park, providing sustainable development of the country’s non-oil sector, could remain attractive for investors, which raised 1.1 billion manats (about $726 million) so far.

Economy Minister Shahin Mustafayev made this statement at the enlarged board meeting dedicated to the implementation of the objectives announced at the recent meeting of the Cabinet of Ministers chaired by President Ilham Aliyev on the results of socio-economic development in the first quarter of 2016 and the future tasks.

He said the Park has already had seven residents, three of which received this status in the first quarter of 2016. In the meantime, few residents are expected to enter the park soon.

The Park established in 2011 covers an area of 167.66 hectares and resides nearby Sumgayit city that is 32.5 km away from Baku.

The appropriate external and internal infrastructure (electricity, heating, water supply, communication and other systems) with offices, training centers, offices, laboratory, etc. were established within the Park to enable profitable activity and development of entrepreneurs and produce competitive products and render services through the application of modern technologies.

To make the Park more attractive for investors its residents are exempt from paying income, land and property taxes for seven years. Moreover, equipment and technology used in the park are also exempt from value-added tax.

Mustafayev spoke about the recent complex political and economic processes taking place at the regional and global levels, noting that these processes have had some negative impact on Azerbaijan's economy.

However, thanks to the recent measures, the negative impact of external factors on the economy could be minimized, according to the minister.

Mustafayev further added that currently the ministry studies the possibility of establishing industrial parks and areas in other regions, and implement measures for the development of traditional areas of industry, including carpet weaving. In addition, the organizational work on creation of a free trade zone in Alat is underway.

Speaking at the event, Rovshan Najafov, the Executive Director of Azerbaijan Investment Company, said that the work on the creation of Neftchala industrial district, established for development of the non-oil industry, is at the final stage.

A ten-hectare area in Neftchala will have every necessary condition including internal and outer infrastructures and will promote small and medium entrepreneurship.

Initially, some seven projects will be implemented in the district. In total, 17 similar projects have been submitted.

Najafov noted that it is planned to establish such industrial districts in Masalli, Fizuli, Aghdam, Lankaran, Shabran and Shamkir regions of Azerbaijan.

Bakhtiyar Alishov, director of the foreign trade policy and World Trade Organization, for his part, said that the Economy Ministry has prepared and submitted to relevant bodies several projects such as promotional rules for exportation of non-oil products, and promotion of “Made In Azerbaijan” brand in the foreign markets, as well as the mechanism of subsidies for export of agricultural products, the organization of export missions in foreign countries, and the study of foreign markets.