New economic mechanisms can be applied in Azerbaijan's liberated lands

"The Azerbaijani Ministry of Economy is currently investigating the economic mechanisms to be applied in the liberated areas and is working to attract foreign investment," Vusal Garayev, deputy head of the Rehabilitation and Development of Territories Department of the Economy Ministry, told Report.

Garayev said that the Economy Ministry is represented in several working groups set up by the state to create industrial parks in the liberated areas, ensure economic recovery, develop financial incentives to support local and foreign entrepreneurs, and coordinate government agencies for rehabilitation and development:

"The main task was to create an economic revival there and reintegrate it into the other territories of the country. The work done shows that the establishment of the Aghdam Industrial Park, including the establishment of the Araz Valley Economic Zone and the involvement of Russia's KamAZ as the first resident there, is one of the first steps taken to revive the economy in the liberated areas."

According to him, several economic mechanisms can be considered to attract local and foreign investors in the future:

"International experience and the natural potential, transport and socio-economic potential of the liberated territories are regularly studied. Once the comparative advantages are identified based on this potential, work will be carried to identify the economic mechanisms to be applied and the way they will be prepared. Therefore, the most important priority now is to ensure economic recovery in the liberated areas, as it plays one of the most important roles in ensuring both sustainable settlement and development.

"Of course, urban planning, construction work, creation of transport and road infrastructure also play an essential role. The Ministry of Economy is currently working on it."

Garayev also touched upon the industrial parks:

"Industrial parks have incentive mechanisms, including incentives for non-residents. Appropriate measures are being taken by the Ministry of Economy and its subordinate bodies to attract foreign investment and increase investment attractiveness in the liberated territories. Bilateral and multilateral meetings are being held in this direction.

Also, multilateral meetings are held to attract potential investors to the Aghdam Industrial Park. There are already several applications related to activity as a resident in Aghdam Industrial Park, and they are currently being analyzed."

Azerbaijan will spend 2.2 billion manats on the restoration of the liberated territories next year.

The foundation of the Araz Valley Economic Zone was laid on October 5, 2021. The zone covers 200 hectares.