Investments in Karabakh projects may reach $10B until 2026

Until 2026, investments in Karabakh projects are planned at around $10 billion (18% of GDP) thanks to the proactive attraction of foreign investors (including those from Türkiye, the UAE, Italy, the UK and Russia), said Gulnara Khaidarshina, chief CIS economist, deputy head of research at Russia’s Gazprombank, Report informs.

“Alongside modernization of infrastructure and socially important facilities, new industrial economic zones focused on the production and export of non-oil and gas products will be created. According to our estimates, in 2023, when projects in Karabakh gain momentum and attract not only budgetary but also foreign investments, their contribution to economic growth may amount to 2.5 pps.,” she noted.

At the same time, new projects aimed at the development of major transportation routes will ensure growth in the share of this sector in Azerbaijan's GDP to nearly 20% by 2024, she added. To recap, in pre-pandemic 2019, the contribution from the transportation sector to Azerbaijan's GDP barely exceeded 10%.