BAKU, Azerbaijan, September 4. Diversifying
Azerbaijan’s economy is one of the government’s key priorities. One
of the important areas of this policy is the establishment of
industrial parks and industrial districts in various regions of the
country. This policy is already producing results. In the first
half of 2026, the volume of production in industrial zones managed
by the Economic Zones Development Agency under the Ministry of
Economy rose by 8.6% year-on-year to 1.94 billion manat ($1.14
billion). During this period, 554.7 million manat ($326.3 million)
worth of manufactured products were exported.
Nakhchivan Industrial Park, expanding geoeconomic
opportunities of Azerbaijan
A new stage in the development of industrial zones in Azerbaijan
is already beginning. Thus, on August 11 of this year, the
foundation of the Nakhchivan Industrial Park was laid. Priority
directions for production, processing and recycling, as well as
services have been determined here. The industrial park is expected
to implement projects in the chemical and food industry, waste
processing, ferrous and non-ferrous metal processing, manufacturing
of construction materials, machinery and equipment, renewable
energy, furniture, textiles, clothing, leather and leather
products, packaging, paper and paper products. In addition to
production buildings, it's planned to create an administrative
building, a social zone including a sports and health center, a
repair workshop, a warehouse building, a truck park and a logistics
center in the park.
What concessions envisaged in Nakhchivan Industrial
Park?
As in other industrial parks, the park will apply a wide range
of concessions and support mechanisms to promote the activities of
entrepreneurs. Thus, the residents of the park will be provided
with ready-made infrastructure created at the expense of state
funds. This infrastructure includes gas, electricity, water and
sewage systems, internal roads and railways, as well as modern
communication lines. In addition, residents of the industrial park
are exempt from property, land and profit taxes for a period of 10
years from the date of their registration. Machinery and equipment
imported for production purposes are exempt from VAT and customs
duties.
What new opportunities does Nakhchivan Industrial Park
open up?
Nakhchivan has a strategic position that differs from other
regions of Azerbaijan due to its location on the border. This
geographical location makes the region an interesting investment
destination in terms of access not only to the domestic market of
Azerbaijan, but also to foreign markets. The main advantage for the
investor here is not only to produce products, but also to organize
production in an area close to regional markets. An entrepreneur
can consider the possibility of exporting his products to foreign
markets by establishing a production line in Nakhchivan without
limiting himself to the local market. In this regard, the advantage
of Nakhchivan is that it can play the role of a bridge between
production and trade. On the one hand, it's possible to use the
local raw materials and production potential of the region, and on
the other hand, it's possible to benefit from trade relations with
neighboring countries.
Nakhchivan Industrial Park located on Zangezur
corridor
One of the main factors increasing the strategic importance of
the Nakhchivan Industrial Park is its close connection with the
future transport and logistics opportunities of the region. In
particular, the implementation of the Zangezur corridor can bring
new dynamics to the economic and geographical position of
Nakhchivan. With the commissioning of the corridor, the role of
Nakhchivan in the international transport and logistics routes of
the region can also increase significantly.
In this regard, it is not enough to approach the Nakhchivan
Industrial Park only as an industrial zone where manufacturing
enterprises are concentrated. When assessing the future potential
of the park, it is more correct to consider it together with its
transport and logistics opportunities. The opening of the Zangezur
corridor can strengthen the position of Nakhchivan in terms of
freight transportation, warehouse and logistics services, transit,
and regional trade.
Another important factor is the future expansion of Nakhchivan's
transport and logistics potential. The Zangezur corridor is
considered not only as a transport line that strengthens
Nakhchivan's connection with other regions of Azerbaijan, but also
as a project that can accelerate the region's integration into the
wider Eurasian transport network. In this context, Nakhchivan's
location on the border is also an important advantage that
increases its regional trade and logistics opportunities.
From a broader regional perspective, it's also necessary to
consider the potential role of Nakhchivan in the transport links
formed along the Middle Corridor. The Middle Corridor is one of the
important routes that envisages the transportation of cargo flows
from China and Central Asia to Europe via the South Caucasus and
the Caspian Sea. The implementation of the Zangezur corridor could
create new opportunities for Nakhchivan's integration into this
wider transport system.
The synergy created by industry and logistics is particularly
noteworthy here. If the industrial park forms a favorable
infrastructure and investment environment for production, the
expansion of transport and logistics opportunities facilitates the
access of that production to markets. In the future, the park can
become one of the economic hubs where production, logistics, and
trade opportunities of Nakhchivan complement each other. The
expansion of access to new markets for the production enterprises
established here can also increase the investment attractiveness of
the region.
Thus, the main advantage for the Nakhchivan Industrial Park
spans beyond the promotion of industrial production. The
combination of industrial infrastructure, a strategic geographic
location, proximity to foreign markets, future transport links, and
the opportunities that the Zangazur Corridor could create may turn
Nakhchivan into an economic hub with broader regional prospects for
investors.
