Azerbaijan's Aghdam turns into new destination for investment and production

Azerbaijan Analysis 23 September 2026 11:52 (UTC +04:00)
Azerbaijan's Aghdam turns into new destination for investment and production
Sadig Javadov
Sadig Javadov
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BAKU, Azerbaijan, September 23. One of Azerbaijan’s key economic policy priorities in recent years has been diversifying the economy, accelerating the development of the non-oil and gas sector and creating new production opportunities across the regions.

The establishment of industrial parks and districts, the development of infrastructure for entrepreneurs, the introduction of investment incentives and the expansion of manufacturing facilities have become important tools of this policy. As a result, industrial policy is evolving into a broader economic mechanism focused on developing production chains, creating new jobs and attracting private investment.

The importance of this approach is particularly evident in the economic recovery of Azerbaijan’s liberated territories. The objective goes beyond rebuilding destroyed infrastructure to integrating the regions into long-term economic activity, establishing production and service industries, attracting private capital and creating employment opportunities.

In this context, industrial zones serve as key platforms where opportunities created by the government intersect with private-sector investment and production activity.

One example of this model is the Aghdam Industrial Park.

The park’s development in recent years shows that the economic reintegration of the liberated territories is not limited to infrastructure reconstruction. The next stage focuses on establishing sustainable economic activity, production chains and a stronger private sector in the region.

Established in 2021 on an area of 190 hectares, the Aghdam Industrial Park has become an important mechanism for the region’s economic development.

In terms of the number of residents, it ranks second among Azerbaijan’s industrial zones after the Sumgayit Industrial Park. A total of 36 businesses have been granted resident status and three businesses have received non-resident status at the Aghdam Industrial Park.

Entrepreneurs have invested more than 175 million manats ($102.9 million) in projects implemented at the industrial park to date, creating more than 1,000 jobs.

The park, which ranks second nationwide in terms of the number of residents, produces goods for both the domestic market and export.

Rising investment signals a new economic phase

The park’s overall investment portfolio of more than 175 million manats ($102.9 million) points to growing investor interest.

The government provides industrial infrastructure and incentives, while private capital is subsequently directed toward production projects.

Production diversification strengthens the park’s appeal

The Aghdam Industrial Park produces construction materials, metal products, electrical distribution equipment, roofing and facade materials, wallpaper, specialized work footwear, concrete substations and other products.

This diversity reduces the park’s dependence on a single sector and strengthens its position as a more diversified industrial zone.

Employment is a key indicator of economic reintegration

The significance of the Aghdam Industrial Park cannot be measured solely by investment and production figures.

More than 1,000 permanent jobs had been created at the park by August 2026, highlighting its importance for the socioeconomic reintegration of the region.

For the sustainable development of Azerbaijan’s liberated territories, creating opportunities for economic activity in these areas is as important as facilitating the return of residents.

Industrial enterprises not only generate sources of income but also establish a long-term employment base for the population.

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