BAKU, Azerbaijan, May 11. Following the end of military hostilities, Karabakh and the surrounding territories of Azerbaijan have entered a large-scale reconstruction phase. This process goes beyond simple rebuilding and instead represents the formation of a new economic and infrastructure model for the region. The process is under the political and strategic oversight of the President of Azerbaijan, Ilham Aliyev, who views the restoration of the liberated territories as a long-term national development project.
According to analysts and expert institutions, total investment in the region’s recovery over the medium term could reach approximately $25–30 billion, covering transportation infrastructure, energy, housing construction, and digitalization initiatives.
One of the key priorities remains the development of the transport network. The Ahmadbayli–Fuzuli–Shusha highway is the first major infrastructure project connecting emerging development centers in the region. It serves multiple purposes: supporting construction logistics, forming the backbone of the future transport system, and enabling the growth of tourism flows. In the long term, the road is expected to become part of a broader regional transport network integrated into Azerbaijan’s economy.
A special role in the recovery process is played by the city of Fuzuli, which is being built essentially from the ground up. Unlike traditional reconstruction projects, this involves the creation of a completely new urban structure. Long-term plans suggest the city’s population could reach 50,000–80,000 residents. Fuzuli is being designed according to modern standards, including energy-efficient construction, digital management of utilities, and automation of core infrastructure systems. It is seen as a model of a new type of urban development, where the city environment is designed as an integrated technological system from the outset.
Shusha is developing along a different trajectory. Here, the restoration of historical heritage is being carried out in parallel with infrastructure modernization. The city is being shaped as a cultural and tourism hub for the region, with upgraded communications, energy systems, and transportation infrastructure. In the long term, annual tourist arrivals in Shusha could reach 1–2 million visitors, positioning it as one of the leading cultural tourism centers in the South Caucasus.
Another key area of development is energy. Karabakh and East Zangezur have been officially designated as a “green energy zone.” The region is already implementing small hydropower projects, installing solar energy systems, and introducing autonomous energy solutions in selected settlements. Given its geographical and climatic conditions, the region has significant renewable energy potential, making it an important component of Azerbaijan’s long-term energy strategy.
At the same time, the “smart village” concept is being developed, focusing on digital management of basic infrastructure such as water supply, irrigation, and electricity distribution. These systems are designed to improve resource efficiency and reduce operational costs, in some cases by 20–40%, based on estimates from comparable international projects.
The economic impact of reconstruction is already visible in rising demand for labor in construction, engineering, architecture, and IT sectors. At the same time, conditions are emerging for the development of small businesses, agriculture, and service industries. In the long run, the region could evolve into a combined construction, tourism, and energy hub.
However, the recovery process remains complex and long-term. Key challenges include mountainous terrain, the scale of destruction, and the need for complete reconstruction of engineering networks. Experts emphasize that infrastructure development is only the first stage. Sustainable growth will require parallel efforts to create jobs, develop social infrastructure, and build a stable economic environment.
Overall, Karabakh is gradually transforming into a new type of integrated development region, where infrastructure, energy, and digital technologies are being developed simultaneously. If current trends continue, basic infrastructure could be largely completed by 2027–2028, key urban centers by 2030–2035, and full economic stabilization could take 10–15 years.
It should also be noted that, just in recent days, the President of the Republic of Azerbaijan Ilham Aliyev took part in the opening of a residential complex in the city of Zangilan. In general, over recent years, the Head of State and First Vice President Mehriban Aliyeva, have consistently participated in official inauguration ceremonies of schools, preschool institutions, roads, and other infrastructure facilities in the liberated territories, which reflects the consistent state-level attention to the issues of reconstruction and the comprehensive development of the region.
The main thing in this process is, of course, a sense of human peace, which is inherent in people of ours by nature. To create and to build — this is what distinguishes true masters of the land from alien ones.
