Baku:The non-oil and gas sector in Azerbaijan has reached a significant milestone, accounting for 72% of the country’s GDP by 2025, according to Economy Minister Mikayil Jabbarov. This announcement was made during his speech at the Azerbaijan-Cambodia business forum held in Baku.
According to Azeri-Press news agency, Minister Jabbarov highlighted the substantial growth of Azerbaijan’s economy, largely driven by the private sector. Since 2020, the non-oil and gas economy has experienced an average annual growth of 5%. Over the past two decades, Azerbaijan has attracted more than $350 billion in investments, with half being foreign direct investment.
Jabbarov noted that the private sector is the main force behind the economic progress, with the number of jobs doubling over the last eight years. Non-oil and gas exports have also doubled in the past six years. To support this growth, the government has introduced mechanisms such as concessional loans, credit guarantees, and subsidized interest rates, alongside covering up to 70% of exporters’ logistics costs to enhance competitiveness in foreign markets.
Efforts to create a favorable investment climate include the development of industrial parks. The Alat Free Economic Zone, near the Port of Baku, provides a special legal and tax framework promoting export-oriented production and high value-added services. Entrepreneurs with investment promotion documents benefit from seven years of tax and customs exemptions, further encouraging investment and business development in the region.