Alat Free Economic Zone working group holds second meeting Innovation, Jobs, and Trade Growth on agenda

The second meeting of the Working Group on the Alat Free Economic Zone (AFEZ) has been held, according to Azerbaijan’s Ministry of Economy.

The session was chaired by Economy Minister and head of the Working Group, Mikayil Jabbarov, and attended by the Chairman of the Board of the AFEZ’s authorised body, Valeh Alasgarov, along with senior officials from relevant government agencies, Caliber.Az reports.

During the meeting, officials highlighted Azerbaijan’s achievements in industrialisation, noting the establishment of modern industrial enterprises and progress made in diversifying the economy beyond the oil and gas sector through innovative mechanisms.

The Alat AFEZ—established within a short period—has quickly become accessible to investors and is now considered a key driver of economic growth. Its main objectives include attracting service providers using advanced technologies, promoting collaboration between international investors and Azerbaijani companies, and contributing to national development through job creation.

Participants also noted that the favourable conditions and incentives offered within the zone are fuelling growing investor interest. In addition to delivering substantial economic returns, the Alat FEZ is expected to bolster Azerbaijan’s regional standing and increase its strategic importance as a vital hub in the East–West, North–South, and Middle Corridor international transport routes.

The meeting also reviewed ongoing projects within the AFEZ, the creation of resilient infrastructure and engineering networks to support investors, as well as updates on the construction of a cargo airport and the next steps in its development.

To recall, Alat Free Economic Zone is a significant initiative by the Azerbaijani government to diversify the economy and attract foreign investment. Established in 2018, the AFEZ spans 850 hectares near the Baku International Sea Trade Port, strategically positioned along major East-West and North-South transport corridors. ​

Designed to foster export-oriented, value-added production, the AFEZ offers a range of incentives to investors, including exemptions from profit, land, and property taxes, as well as customs duties. The zone provides modern infrastructure, such as roads, utilities, and robust connectivity to global transportation networks, enhancing its appeal as a logistics and manufacturing hub. ​

In June 2023, the first stage of the AFEZ was inaugurated, covering 60 hectares with plans for further expansion. The zone aims to attract investors across various sectors, including manufacturing, logistics, and technology, contributing to Azerbaijan's goal of transitioning to a knowledge-based, competitive economy. ​

The AFEZ's strategic location and investor-friendly policies position it as a pivotal element in Azerbaijan's economic development, strengthening its role as a regional trade and logistics center

By Aghakazim Guliyev