Azerbaijan’s Karabakh, East Zangazur rebuild hits over $14 billion—minister

Azerbaijan has invested 25 billion manats ($14.7 billion) in the development of the liberated territories within the Karabakh and East Zangazur economic regions over the past six years, Finance Minister Sahil Babayev said as he addressed the 2nd Azerbaijan International Investment Forum (AIIF 2026), Caliber.Az reports.

“We are investing heavily in our infrastructure and domestic market. If we look at Azerbaijan’s state budget, around 30% constitutes the investment portfolio. We have directed substantial investments to our liberated territories. Over the past six years, we have invested 25 billion manats in Azerbaijan’s Karabakh and East Zangazur regions. We are building infrastructure and housing and seeking to create conditions for the people of Azerbaijan, including former internally displaced persons, to return to their native lands and live there in dignified conditions,” Babayev said.

He added that investment in other regions of Azerbaijan had exceeded 16 billion manats ($9.4 billion).

“Budget expenditures will be directed toward state programs aimed at diversification. We are currently working actively with relevant organizations, ministries, and agencies on further developing the tourism, agriculture, metallurgy, and digitalization sectors, as well as, of course, providing broader support for economic activity. In the coming period, the total amount of funds allocated to these areas will be around 3 billion manats,” the minister said.

Babayev also said Azerbaijan was actively cooperating with major international financial institutions, including the World Bank, the European Bank for Reconstruction and Development, the Asian Development Bank, and the Islamic Development Bank.

“Azerbaijan’s total portfolio of cooperation with international financial institutions exceeds $16 billion. We are confident that there is enormous potential to further strengthen and expand this cooperation, especially given Azerbaijan’s plans for infrastructure projects, diversification policy, and regional development,” he stressed.

Babayev highlighted opportunities for cooperation in areas ranging from water supply and sanitation to agriculture, roads, railways, and highways.

“The potential for expanding cooperation is enormous, and Azerbaijan expects its key partners among international financial institutions to continue playing a crucial role in deepening the partnership, expanding the portfolio, and covering an increasing number of infrastructure projects,” he said.

He also called on international partners and forum participants to support Azerbaijan’s economic diversification efforts and contribute to the implementation of new projects in the country.

By Vafa Guliyeva