Valeh Alasgarov: At least 75% of Alat FEZ's output should be exported

The Alat Free Economic Zone (FEZ) is developing not as a domestic market, but as an export hub, Valeh Alasgarov, chairman of the Governing Council of the Alat FEZ Authorized Body, said at the Technovation Forum in Baku, Report informs.

"We are open to discussing potential projects with any investor, but in the Alat FEZ, we prioritize the activities of enterprises that create high added value and are engaged in export-oriented production. This means that at least 75% of manufactured goods must be exported from the country," Alasgarov noted.

According to him, one of the main reasons for this is to prevent the formation of small and medium-sized enterprises in the zone focused on the domestic market and to prevent unfair competition between enterprises operating in the FEZ and companies in the country's main economic sector: "Since enterprises operating in the free zone are exempt from taxes and customs duties, they have an advantageous competitive position, and this could create difficulties for local companies."

Alasgarov also stated that high-value-added manufacturing accelerates national development: "Our position on export-oriented, high-value-added manufacturing is sometimes criticized. However, the experience of countries like Ireland demonstrates the validity of this approach. In 1959, they established the Shannon Free Economic Zone and declared their willingness to welcome enterprises engaged in export-oriented, high-value-added manufacturing. As part of this, the majority of manufactured goods were to be exported.

Comparing Ireland today with Ireland of the 1960s, we see that it was precisely thanks to this export-oriented business development strategy that the country rose to a completely different level."