(MENAFN- AzerNews)
Nazrin Abdul
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The liberation of the Garabagh region of Azerbaijan has opened
new avenues for investment and economic development. With a focus
on large-scale reconstruction efforts, the government is
prioritizing the restoration of infrastructure and public services,
creating a conducive environment for both local and foreign
investors.
Orkhan Mammadov, Chairman of the Board of the Small and Medium
Business Development Agency (SMBDA/KOBIA) under the Ministry of
Economy, is visiting Washington for a meeting on Azerbaijan-US
relations, the business environment, and investment attraction.
This meeting is jointly organized by the Embassy of Azerbaijan in
the United States, the Washington Inter-Governmental Professional
Group, and the World Trade Center. During his speech at the
meeting, he noted that the liberation of the Garabagh region of
Azerbaijan, which had been under Armenian occupation for nearly 30
years, was a significant event for Azerbaijan and has also
stimulated investment attraction.
He stated that large-scale reconstruction efforts in Garabagh
and the return of business to the region create attractive
opportunities for entrepreneurs.
"The government's comprehensive incentive package for this
region has further increased interest in business. SMBDA is
currently accepting project proposals from local and foreign
entrepreneurs interested in establishing businesses in Garabagh. To
date, about 2,300 applications have been registered, including over
500 from foreign investors. Among the applicants are four US
companies and investors. I am confident that after today's event,
some entrepreneurs will take a closer look at the investment
opportunities in Garabagh and Azerbaijan," said the chairman of
SMBDA.
It should be noted that, in the context of the rapid
construction and development in the previously occupied regions of
Azerbaijan, substantial restoration and reconstruction efforts are
underway, along with rapid economic reintegration measures in the
economic regions of Garabagh and Eastern Zangezur.
In line with the priority of revitalizing Garabagh, industrial
parks have been established to realize the region's industrial
potential, reintegrate it into the country's economy, and ensure
employment for the local population.
In these zones, favorable conditions have been created for
entrepreneurs to obtain various concessions, stimulating business
activity. Notably, the Aghdam and "Araz Valley Economic Zone"
industrial parks, like other existing industrial parks in the
country, offer a favorable investment environment for
entrepreneurs. Residents of these industrial parks benefit from
ready-made infrastructure funded by the state. Additionally, they
are exempt from property tax, land tax, income or profit tax for 10
years from the date of registration, as well as from VAT on
imported machinery, technological equipment, and facilities for
production purposes, and customs duties for 10 years.
Furthermore, changes made to the Tax Code as of January 1 of
this year provide additional benefits for entrepreneurs operating
in liberated territories. These benefits include subsidizing social
insurance fees, granting five days of additional vacation to
professionals living and working in these areas, calculating
supplements to monthly salaries, providing a one-time allowance of
600 manats, simplifying the acquisition of work permits, and not
applying the labor migration quota (with a five-day exemption for
foreign specialists each year). Additionally, the import of certain
raw materials and materials used in production by entrepreneurs in
liberated territories is exempt from VAT for a period of 10
years.
Entrepreneurs engaged in production activities will also receive
financial assistance from the state budget amounting to 20 percent
of the utility costs they incur every month for a period of 10
years.
These reconstruction initiatives not only aim to rebuild the
physical landscape but also to foster a thriving entrepreneurial
ecosystem. By implementing favorable policies and providing
necessary support, the region is becoming increasingly attractive
for business ventures.
This focus on investment and entrepreneurship is expected to
stimulate economic growth, generate employment opportunities, and
ultimately contribute to the sustainable development of the region.
Overall, the combination of reconstruction efforts and an emphasis
on creating a business-friendly environment positions Garabagh as a
promising destination for investment and economic activity in the
coming years.
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