BAKU — Azerbaijan is set to significantly involve its private sector in the defense industry by issuing licenses for the manufacturing of military products, a move aimed at bolstering the nation’s defense capabilities and fostering economic growth.

According to Trend News Agency, Arif Babayev, Advisor to Azerbaijan’s Defense Industry Minister, detailed that the Ministry of Defense Industry will oversee the issuance of licenses covering a broad spectrum of activities including design, production, testing, repair, and maintenance of military products. The licensing fees will range from 10,000 to 50,000 manat, varying based on the type of activity.

Babayev highlighted ongoing efforts to refine the licensing rules, conditions, and requirements. The initiative will also extend tax and customs privileges to those involved in the defense sector. Specifically, entities engaged in the design, production, sale, repair, and maintenance of defense articles will benefit from exemptions on customs duties and value-added tax, contingent on documentation provided by the Ministry of Defense Industry.

This policy is part of a broader strategy to stimulate the defense industry’s development, create a competitive market environment, and integrate private businesses more deeply into this crucial sector. Additionally, the Ministry will manage the import and export permissions for military products, aiming to enhance operational efficiency and incorporate international best practices through amendments to national legislation.