baku: The rapid economic rise of Azerbaijan’s territories liberated from occupation has become a cornerstone of the nation’s development strategy. During the restoration phase spanning 2021-2025, the Azerbaijani government has not only focused on constructing infrastructure but also systematically rehabilitated the economic, social, and institutional spheres. More than 22 billion manats have been allocated from the state budget for large-scale restoration and construction activities, forming the real economic foundation of the ‘Great Return’ policy.
According to Azeri-Press News Agency, the Coordination Headquarters, established by President Ilham Aliyev on November 24, 2020, was tasked with reviving the economy of the liberated territories, creating infrastructure, and reintegrating the regions of Karabakh and East Zangazur into the national economy. Led by Samir Nuriyev, the five-year activities of the Coordination Headquarters have achieved significant results, marking the establishment of new economic structures that ensure the long-term development of these regions.
The ‘First State Program on the Great Return,’ approved on November 16, 2022, outlines the strategic roadmap for the restoration, sustainable settlement, and full economic integration of the liberated territories. Over five years, construction, modern infrastructure, industrial parks, agricultural clusters, and green energy projects have transformed these areas into Azerbaijan’s largest economic transformation zones.
State investments, private sector participation, and expanded production and logistics capacities have turned Karabakh and East Zangazur into a new economic locomotive, playing a leading role in updating Azerbaijan’s regional economic model. The phased resettlement of the population has resulted in more than 62,000 people living, working, and studying in these areas.
In the initial years of 2020-2021, Azerbaijan focused on ensuring security and preparing the liberated territories for economic activity. Demining efforts and the construction of main highways, such as the ‘Victory Road,’ laid the groundwork for economic revival and investment inflow. Energy supply projects like the ‘Fuzuli,’ ‘Shukurbeyli,’ and ‘Jabrayil’ substations eliminated energy shortages for industrial activities.
From 2021-2022, the institutional basis for economic development was established, with the approval of master plans for Karabakh and East Zangazur. Key infrastructure projects included the Aghdam Industrial Park and strategic transport projects like the Horadiz-Agband railway. During this phase, tax incentives and investment promotion packages attracted businesses to the economic zones.
The transition to production from 2022-2023 saw the activation of industrial parks and agro-clusters. The Aghdam Industrial Park became a hub for construction materials and other industries, while the agrarian economy was revitalized with modern irrigation systems and livestock farming support.
In 2023-2024, production enterprises and logistics centers began full operations, spurred by tax incentives and investment attractiveness. The Aghdam and Jabrayil industrial zones expanded production capacities, and transport infrastructure projects, including international airports and highways, reshaped the regional map.
By 2024-2025, Karabakh and East Zangazur were declared a ‘Green Energy Zone,’ accelerating alternative energy projects and positioning the region as a future energy exporter. Investment in industrial parks reached hundreds of millions of manats, supporting small and medium-sized enterprises and creating thousands of jobs.
Tourism development has also been a key focus, with infrastructure projects in Sugovushan, Dashalti, Talish, and Istisu. As a result, Karabakh and East Zangazur are emerging as a sustainable production and export hub, significantly contributing to Azerbaijan’s GDP growth.
These once-devastated lands now represent a thriving economic ecosystem, integrating industry, energy, and logistics, and their economic rise has only just begun.