Share of industrial zones in non-oil production up

By Azernews

By Ayya Lmahamad

Economy Minister Mikayil Jabbarov has said that the share of industrial zones in non-oil industrial production increased by 15.5 percent in 2021.

"In 2021, the share of industrial zones in non-oil industrial production increased to 15.5 percent, whilst the share in the growth of non-oil industrial production was 30 percent," he wrote on the official Twitter page.

The minister emphasized that industrial zones play an important role in the diversification of the economy, especially in the development of the non-oil industry.

He added that last year, industrial zones produced goods worth AZN 2.4 billion ($1.4bn) and this is by 88.3 percent more than in 2020.

"To date, residents of industrial zones have invested AZN 6.4 billion ($3.7bn), including AZN 247.7 million ($145.7m) in 2021 and created more than 9,700 jobs," another post said.

Jabbarov stated that the ongoing projects are expected to bring more than AZN 370 million ($217.6m) of investments, as well as create more than 2,400 permanent jobs.

At the same time, the minister added that by the end of 2021, the volume of exports in industrial zones increased by 2.7 times compared to 2020 and amounted to AZN 959.3 million ($564.2m).

"In 2021, the share of goods produced in industrial zones in non-oil exports reached 20.8 percent, which is higher than in 2020 (11.4 percent) and 2019 (9.6 percent). In non-oil industry exports, this figure is 30.8 percent," he wrote.

It should be noted that Azerbaijan has five industrial zones, with the primary goal of ensuring the long-term development of the non-oil sector, creating and expanding new production areas in the country using innovative technologies, and expanding the export map of these products. Approximately 55 economic entities are currently registered as residents in industrial zones.

Previously, it was reported that a total of $3.7 billion had been invested in industrial zones, with a future investment of half a billion manats, or $250 million, planned.

One of the areas with great potential for innovative economic development is the establishment of industrial parks. The decrees were signed to establish the Aghdam Industrial Park (May 28, 2021) and the Araz Valley Economic Zone (October 4, 2021) in Azerbaijan's liberated territories.