Mikayil Jabbarov: Non-oil sector becomes main driver of economic growth

The non-oil and gas sector has emerged as the primary driver of growth under Azerbaijan"s economic diversification strategy, Minister of Economy Mikayil Jabbarov said at a forum in Baku focused on the country"s tax system.

According to Report, he noted that between 2021 and 2025, the non-oil and gas sector achieved an average annual real GDP growth rate of 5.9%, making it one of the key sources of economic development.

The minister emphasized the important role of the private sector in diversification and said government support continues. In recent years, the main measures have included tax and customs incentives, which have increased the private sector"s contribution to tax revenues. Last year, the private sector accounted for 76% of revenues in the non-oil and gas sphere.

Jabbarov added that in 2025, investments in fixed capital in the private non-oil and gas sector grew by 11.1%, while foreign investment increased by 24%. Investments in non-oil industry rose by 26%.

Between 2021 and 2025, the average annual growth of value added in non-oil industry reached 8%. As a result, the share of the non-oil sector in GDP rose from 58.3% in 2018 to 71.5% in 2025.