it is important in terms of supporting the activities of entrepreneurs in industry, including small and medium-sized businesses, creating a favorable business and investment environment, and creating new jobs. According to the Tax Code of the Republic of Azerbaijan, residents of industrial parks are exempted from corporate income tax, property tax, land tax and VAT for imported machinery, technological equipment and devices in industrial parks for 10 years from the reporting year of registration. According to the Law of the Republic of Azerbaijan on Customs Tariffs, based on the corresponding supporting document, residents of industrial parks for a period of 7 years from the date of registration are exempted from customs duties on imported equipment, technological equipment and devices intended for the construction of production sites, research and development, as well as production goals in the industrial parks.
Measures related to the organization, management and development of the industrial parks and industrial estates are implemented by the Economic Zones Development Agency under the Ministry of Economy of the Republic of Azerbaijan and ‘Tarniz Shahar’ OJSC (Balakhani lndustrial Park).
The 7 industrial parks in brief
The 7 industrial parks are: Sumgayit Chemical, Mingachevir, Garadagh, Balakhani, Pirallahi, Aghdam, “Araz Valley Economic Zone”.
Sumgayit Chemical lndustrial Park (583.5 ha) : focus on are chemical industry products, including inorganic chemistry, organic synthesis chemistry, polymer chemistry, household chemicals and pharmaceutical chemicals, products of machine-building industry, including products of electric power, machine tools and machine building, machinery and equipment for agriculture, products of the metallurgical industry, additives for metallurgical processes, including ferrous and non-ferrous metal products, various construction materials, information and communication technology products, light industry products, packaging products.
Balakhani lndustrial Park (10.15 hectares): focus on creating favorable conditions for potential entrepreneurs and investors interested in recycling.
Garadagh lndustrial Park specializes in the field of production of tankers, dry cargo ships, tugboats, passenger ships, crane carriers, diving ships, various types of fishing vessels, multipurpose platform supply vessels, liquefied gas tankers, coastal safety boats, ship fleets of various sizes, production and repair of other types of large, medium and heavy tonnage ships and equipment.
Mingachevir lndustrial Park specializes mainly in light industry: two factories for the production of cotton yarn from Mingachevir Textile LLC were put into operation in 2018.
Pirallahi lndustrial Park (30 ha) has been established for the development of the pharmaceutical industry: pharmaceuticals and medicines (tablets, capsules, etc.), intravenous, dialysis and injection solutions, medical equipment and devices, processing and packaging of medicinal plants, veterinary drugs, auxiliary materials used in pharmaceutical (sterile gloves, systems, embroidery, X-ray films, fluorography tape, etc.) as well as light industry products and food industry products.
Aghdam lndustrial Park was established in Aghdam region in order to successfully implement construction and improvement works in the liberated territories, as well as to form a competitive and sustainable economy, to develop public-private partnership in this field and to apply the necessary incentives. Currently, work is underway to build the necessary infrastructure in the Aghdam lndustrial Park.
“Araz Valley Economic Zone” lndustrial Park was established in East Zangazur economic region (Jabrayil) in order to restore economic activity in the liberated territories, to ensure the settlement and employment of the population, as well as to create appropriate conditions for the production of competitive products. Currently, work is underway to build the necessary infrastructure in the lndustrial Park.
The industrial estates in brief
The following incentives are applied in industrial estates:
- Determination of the minimum rent prices for land and buildings;
- lssuance of soft loans for residents;
- Simplification of the administrative procedures;
- Organization of services for effective implementation of entrepreneurial activity
Neftchala lndustrial Estate (10 ha) will produce cars, fish feed, plastic products, irrigation systems, polyethylene irrigation pipes, paper cups and beverages, install modular school buildings, fish processing and canning. The vast majority of these production areas have already been established and production activities have commenced.
Masalli lndustrial Estate where entrepreneurs are carrying out work on the construction of mattresses and their parts, children’s, kitchen and upholstered furniture, textiles, decorative coatings for exterior and interior walls, woodworking, roofing and accessories, plastic doors and windows.
Hajigabul lndustrial Estate (20 ha): work is under way to build plastic containers and water containers, automobiles, equipment for the production of construction materials and their spare parts, various types of fertilizers, polypropylene bags, insulation materials and bio proteins. Part of the mentioned production areas has been established and relevant works are being carried out in the direction of construction of other production areas.
Sabirabad lndustrial Estate (20 ha): a wool supply point and a honey packing plant have already started operating in the industrial estate. At the same time, appropriate work is being done to establish seed processing and food production areas.