Investment surge in Azerbaijan's Karabakh, East Zangazur drives economic growth Industrial enterprises increase by over 25%

Substantial investments and economic activities marked a significant boost in the liberated territories of Azerbaijan in 2023, with construction and installation work seeing a notable increase.

A total of AZN 6.14 billion was allocated for construction and installation projects in these areas, representing a 53.1 per cent increase from 2022, Caliber.Az reports citing the State Statistical Committee of Azerbaijan.

Of this, AZN 3.94 billion (64.1 per cent) was directed towards the East Zangazur economic region, while AZN 2.20 billion (35.9 per cent) was invested in the Karabakh economic region. These figures reflect a 82 per cent and 19.3 per cent increase, respectively, compared to the previous year.

Investments in the Karabakh economic region showed growth in various sectors. Agricultural, forestry, and fishery investments doubled to AZN 54.12 million, while industrial investments increased by 32.3 per cent to AZN 240.26 million. Construction investments surged by 3.3 times to AZN 383.16 million, and trade and vehicle repair saw a 57.4-fold increase to AZN 11.47 million. However, investments in transport and warehousing experienced a 7.9 per cent decline, totaling AZN 1.37 billion.

In the East Zangazur economic region, investments saw even more dramatic increases. Investments in agriculture, forestry, and fishery soared by 10.7 times to AZN 294.25 million.

The industrial sector experienced a 14.4-fold rise to AZN 678.63 million, and construction investments grew by 4.1 times to AZN 893.56 million. Investment in transport and warehousing increased by 16 per cent to AZN 2.03 billion, while other economic sectors saw a decrease of 36.7 per cent to AZN 110.41 million.

The total area of residential premises put into operation in the Karabakh economic region in 2023 was 28,206.6 square meters, a decrease of 5.4 per cent from the previous year. Notably, the Aghjabadi district saw a 25.4 per cent reduction, while the Fuzuli district experienced a 67.5 per cent increase in residential space.

Additionally, the number of industrial enterprises in the liberated territories rose to 142, marking a 25.7 per cent increase from 2022. Among these, 117 enterprises were located in the Karabakh economic region, and 25 in the East Zangazur economic region.

The number of individual entrepreneurs engaged in industrial activities also grew by 13.1 per cent, reaching 1,218, with significant increases observed in both economic regions.

The value of industrial production in the liberated territories reached AZN 298.68 million, with AZN 274.77 million from the Karabakh economic region and AZN 23.91 million from the East Zangazur economic region, reflecting an overall increase of 48.6 per cent and 3.4 times, respectively, compared to the previous year.