Azerbaijan has chosen an industrialization policy for the development of the non-oil sector (ANALYTICS)

Azerbaijan has traditionally been dependent on oil and gas exports, and the government has recognized the importance of reducing this dependence to ensure long-term economic stability.

The country has been focusing on developing various non-oil sectors, including agriculture, tourism, information technology, manufacturing, and services.

Economy Minister of Azerbaijan Mikayil Jabbarov noted that the revival of Garabagh and the integration of its rich natural resources into the economic system of the country will give a serious impetus to the development of the non-oil sector.

The government has taken several steps to meet these goals.

“In six months of 2023, our main direction was to secure the sustainable development of our country, the expansion of the non-oil sector, the restoration of Garabagh and East Zangazur, and the continuation of reforms in the economic and social spheres. Our economy has developed over the past six months, although the absolute figures are not exceptionally high. However, our non-oil sector and the industrial area of the non-oil sector have grown to a sufficient degree. Our non-oil industry grew by 6.5 percent, and the non-oil sector grew by more than 3 percent overall,” said President of the Republic of Azerbaijan Ilham Aliyev at a meeting dedicated to the socio-economic performance of six months of 2023.

Member of the Milli Majlis Committee on Economic Policy, Industry, and Entrepreneurship Vugar Bayramov says that preliminary assessments show that the potential of these areas in the non-oil sector will allow the formation of 10 percent of Azerbaijan's economy: “This means a new value of about 10 billion manats in the country's economy. The natural resources of the liberated territories, especially the agricultural potential, are of great importance for the economic development of our country. Work on the development of agriculture has already started in these lands.”

The agriculture sector has been identified as a priority for development. Efforts have been made to modernize agriculture, improve irrigation systems, and promote the use of advanced technologies in farming. This is aimed at increasing agricultural productivity and ensuring food security.

Azerbaijan's PM Ali Asadov during the presentation of the report on the activities of the Cabinet of Ministers in 2022, noted that 940 farms have been registered and relocated for agricultural development in Garabagh: “In general, in the last two years, 6.5 billion manats and 4.3 billion manats in 2022 have been allocated to the reconstruction and restoration of territories freed from occupation from the state budget.”

Improving transport infrastructure is crucial for economic diversification. Azerbaijan has invested in the development of road, rail, and sea transport infrastructure to enhance connectivity and facilitate the movement of goods and people.

Jabrayil district, being a transport and logistics center, is located on the lines of communication with both Türkiye and Iran, as well as other regions of Garabagh. The impact of the Garabagh region on transport services in Azerbaijan is estimated at 4.9%. Shusha will become the main driver of tourism not only in Garabagh but also in Azerbaijan as a whole, as the cultural center of the Islamic and Turkic worlds. The largest city of the Garabagh region, with a population of 70,000, Aghdam can function as a light industry and service center of the region.

The country has recognized the importance of renewable energy sources to reduce dependence on fossil fuels. Projects related to wind and solar energy have been initiated to harness the country's potential in these areas.

The potential of 0.5 gigawatts of wind, 0.7 gigawatts of water, and 4 gigawatts of solar energy in the Garabagh region lay the foundation for the region's transformation into a green energy zone. Khudafarin, Giz Galasi, and Suguvushan stations, as well as small hydropower stations in Kalbajar and Lachin, are able to meet the initial energy demand of the Garabagh region. BP's intention to invest in green energy in Garabagh is an additional incentive to attract investment not only in the field of alternative energy but also in the Garabagh region as a whole.

Azerbaijan has sought to collaborate with international organizations and foreign partners to access expertise, technology, and financial resources for the development of its non-oil sectors.

On December 7, 2023, the groundbreaking ceremony of the pharmaceutical production facility of "Gen Pharma Caucasus Manufacturing Operations" LLC was held in Pirallahi Industrial Park.

The enterprise will produce 42 high-quality medicinal products in various dosages and packaging with the application of advanced technologies of Türkiye. The investment cost of the plant to be built is 59.3 million manats. 165 people will be permanently employed in the enterprise. After the plant starts operating, the demand for several pharmaceutical products in the country will be met through local production, and dependence on imports will be reduced.

In addition to selling the products produced in the factory with an annual production capacity of 50 million boxes, it is planned to export them to the countries of the region under the "Made in Azerbaijan" brand.

Analytic group of

The article focuses on the theme of "Development of free enterprise and liberal economy"

The article was published with the support of the Media Development Agency of the Republic of Azerbaijan (MEDIA)

You Might Also Like