Azernews.Az

By Nigar Orujova

Oil producing Azerbaijan, aiming to develop its industrial potential, has recently established a number of industrial parks around the country. Yet another industrial facility, which will open up 380 work places, will be located in the Neftchala region.

The Economy and Industry Ministry reported that at the initial stage, 15.6 million manats ($9.9 million) will be invested in seven projects that will be realized at the industrial park.

Negotiations are underway with entrepreneurs who want to participate in the industrial park. Azerbaijan Investment Company has already received 18 projects.

Currently, construction of an administrative building, four production units with a total area of about 8,000 square meters and necessary infrastructure is underway at the site.

In general, the park will offer eight production units with a total area of about 15,000 square meters. Location of the facility in Neftchala is not accidental, as the region has always been famous as industrial site.

The park will contribute to development of the non-oil industry by creating commercial and processing enterprises to promote small and medium entrepreneurship.

Industrial parks differ from industrial districts by operation of mainly large entrepreneurs who enjoy financial and tax benefits. As for industrial districts, small and medium-size entrepreneurs operate there and they are not provided with fiscal and financial incentives, but are provided with appropriate infrastructure

Economy expert Ogtay Hagverdiyev told Azernews that today’s strategic aim is to create such a powerful non-oil sector that will become an alternative to the oil sector and decrease the economic depending from one particular sector.

This longstanding process will take more than 1-2 years. The expert stressed that the industry should be science-driven. One of the main fields in this connection may be connected with oil as well, but not with extraction, Hagverdiyev believes.

The country has already established industrial parks in Sumgayit and Balakhani district of Baku, Mingachevir and Garadagh.

Recently, it was reported that another industrial park is planned to be open in Ganja, the second largest city of Azerbaijan, specialized in metallurgy.

Azerbaijan offers favorable conditions at the industrial districts to attract foreign businessmen to invest and participate in the industrial parks.

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Nigar Orujova is AzerNews’ staff journalist. Follow her on Twitter: @o_nigar

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