Alat Free Economic Zone Can Emerge As Regional Industrial Hub Ifc Regional Manager


(MENAFN- Trend News Agency) BAKU, Azerbaijan, September 11. Alat Free Economic Zone (AFEZ) has a potential to emerge as a regional industrial hub, Ivana Fernandes Duarte, IFC's Regional Manager for the South Caucasus, said in an exclusive interview with Trend .

"IFC in partnership with the Austrian federal Ministry of Finance and in collaboration with the AFEZ Authority is working with AFEZ on developing initiatives to partner with its tenants both in terms of advisory services and also investments. As a unique export-led industrial zone, AFEZ aims to attract foreign investment in non-oil and gas sectors through a special legal, regulatory, and fiscal regime. While advising potential investors at the early stage of their projects, the goal is to ensure those projects support the country's climate-resilient development path. Strategically located close to the Baku International Sea Trade Port and transport corridors, AFEZ-designed to attract and grow value-added and manufacturing activity-has the potential to emerge as a regional industrial hub. This will lead to Azerbaijan's economic diversification, ensuring sustainable and inclusive growth," she said.

Duarte went on to add that in the face of changing geopolitical context, and tightening financial conditions globally, Azerbaijan is exploring and optimizing new growth drivers.

"Moving forward, unlocking the full potential of the agricultural sector, and embracing digitalization, while leveraging the power of the private sector, can help tap Azerbaijan's growth potential. Also, given its strategic location, the country can emerge as a regional transit and transport hub. A conducive business environment along with financial and banking sector reforms is vital to Azerbaijan's future roadmap. In addition, Azerbaijan is strategically focusing on green energy, public-private partnerships, global value-chains, and international trade," added the IFC regional manager.

She noted that to support these efforts, IFC has advised the government on developing a new law on investments and FDI promotion strategy, which is in the process of being adopted.

"In addition, IFC has been advising the government on fostering a conducive regulatory regime for business, with a foon business inspections, licensing and permits, among others," she said.

The opening ceremony of the first stage of the Alat Free Economic Zone was held on July 9. The total area of the Alat FEZ is 850 hectares. On the territory of 60 hectares, where work is being carried out within the first stage, construction has already begun and a number of works have been completed.

The land plots that will be leased to investors are already ready for construction work. Inside the land plots with a total area of 297,000 square meters, there are connection points to water, sewer, electric, gas, and communication networks.

There is also a ready-to-use internal and external engineering and communication infrastructure. Customs checkpoints and premises for customs inspection have been built at the main entrance to the territory.

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