Minister: Azerbaijan develops dedicated methods for citizens’ activities in liberated lands

By Azernews

Azerbaijan is developing dedicated methods for its citizens’ activities in the liberated territories, Economy Minister Mikayil Jabbarov said.

He made the remarks at the Dayag award ceremony, held on the occasion of the 5th anniversary of the Small and Medium Business Development Agency (SMBDA), Azernews reports.

The minister noted that the role of SMBs in the country’s diversification is invaluable, adding that they provide flexibility, employment opportunities, and economic stability to the country’s economy.

“Dozens of entrepreneurs are already working in the liberated territories. The benefits to be applied from January 1, 2023, to projects to be implemented in the liberated lands are designed to ensure stable and profitable economic activity. Lots of new projects are expected to be launched in 2023,” he said.

Event with entrepreneurs’ participation to be held in Nakhchivan

“A big event with the participation of entrepreneurs is planned to be held in the Nakhchivan Autonomous Republic of Azerbaijan in 2023,” he said.

Mikayil Jabbarov emphasized that the goal is to hold a productive discussion between the state bodies and entrepreneurs about the economic, and human potential, as well as economic relations with Turkiye.

New financial tools

Further, noting that the Business Development Fund sets a goal to implement new tools in 2023, the minister added that it is proposed to implement both support measures and grant-based instruments through the fund.

He said that one main tool has been to implement concessional loans through the Entrepreneurship Development Fund.

“The fund covers thousands of projects, but the use of this tool alone does not meet today's demand. From this perspective, we will create a range of financial tools in accordance with the demands of the Azerbaijani economy. In this regard, we will make a presentation in the first quarter of the next year,” he said.

Entrepreneurship development

Speaking at the ceremony, Assistant to the President Shahmar Movsumov stated that the increase of the share of SMBs in GDP in the non-oil and gas sector to 35 percent is one of the main goals in the socio-economic development strategy of Azerbaijan for 2022-2026.

He added that it is also planned to bring the share of employment of SMBs in the non-oil and gas sector to 60 percent.

“The development of entrepreneurship in Azerbaijan is defined as the main driver of economic growth,” he said.

Shahmar Movsumov also underlined that the development of the private sector in the country, including micro, small and medium-sized businesses, will increase the interest of domestic and foreign investors in Azerbaijan’s economy.

“In addition, non-oil exports will expand. All the steps taken at the initiative of the president are aimed at the development of entrepreneurship, in particular of SMBs, in the country,” he said.

Creation of SMB cluster companies

“Starting next year, practical steps will be taken in Azerbaijan to create SMB cluster companies, which are subject to a number of tax benefits,” Small and Medium Business Development Agency Board Chairman Orkhan Mammadov said.

He noted that in 2023 the agency plans not only to expand the existing support mechanisms but also to implement new initiatives.

“In order to obtain practical knowledge and improve the SMBs’ performance in the field of business organization and management, work is underway to implement the model enterprise pilot project,” he said.

Noting that the project has been successfully applied in international practice, he stated that it is planned to complete the project during the next year.

Moreover, he said that activities will continue to restore Karabakh and return the SMBs sector to Azerbaijan’s liberated territories.

Orkhan Mammadov added that in the coming period, the promotion of Karabakh’s business potential among local and foreign investors, the reception and generalization of applications from entrepreneurs interested in activities in this region, as well as the coordination work necessary for business creation, will also be ensured.

“The listed fields are part of our strategic agenda. Of course, there is still a lot of work and projects to be done, and we believe that we will achieve our goals within the active platform for cooperation between the public and private sectors,” he said.