Alat Free Economic Zone

What Alat Free Economic Zone does

Alat Free Economic Zone (AFEZ) is a government-established free economic zone authority created by Presidential decree in May 2020, operating under a dedicated national law adopted in May 2018 that grants it prevailing-law status and extraterritorial regulatory authority. It is headquartered in Baku with an on-site operations office in the Alat settlement (Garadagh District), and is led by Chairman Valeh Alasgarov. AFEZ provides export-oriented manufacturers with a zero-tax fiscal regime (0% corporate tax, VAT, property tax, customs duties, and personal income tax up to ~$4,700/month), ready-to-use industrial land plots, a One-Stop Shop Business Centre for licensing and permitting, on-site office and meeting space, facilities management, vocational training, and multimodal logistics access via road, rail, sea (adjacent to Baku International Sea Trade Port), and a planned international airport.

The core technology stack is industrial rather than digital: 719 hectares of master-planned zone split across FEZ 1/2/3, with 60 hectares (Phase 1A) currently developed and over 1,000 hectares reserved for future expansion. Service delivery is anchored by the One-Stop Shop (a three-story business centre with 440 parking spaces and 10 EV chargers) and a wholly-owned logistics subsidiary, Alat Bay Industrial Development (AlatBay), which operates dry and cold storage and was the zone's first legal entity. AFEZ's revenue model combines individualized long-term industrial land leases, office leasing within the One-Stop Shop, facilities management fees, and value-added logistics revenue via AlatBay, with pricing negotiated per investor based on plot size, capex, headcount, and value-added characteristics.

The go-to-market is government-led enterprise sales: AFEZ targets high-value-added, export-oriented manufacturers (minimum 75% of produced goods must be exported) and renewable-energy equipment producers, and pursues investors through international trade exhibitions (Hannover Messe, Manufacturing World Tokyo, Caspian Oil & Gas, AIM Congress), bilateral economic forums, on-site familiarization tours, a multilingual corporate website (English and Japanese), and direct outreach by the AFEZ Authority team, which reviews investor enquiries within two working days. Certification posture (ISO 9001, 14001, 45001 and EDGE ADVANCED GREEN for the AlatBay facility) supports enterprise due diligence, and the zone is positioned as the largest free economic zone in the Caucasus region.

Name

Alat Free Economic Zone

Legal name

Alat Free Economic Zone

Website

https://afez.az

Company type

Private

Founded year

2020

Operating status

Operating

Headcount range

51–100 employees

Short description

Alat Free Economic Zone (AFEZ) is a government-established free economic zone authority in Azerbaijan offering zero-tax fiscal incentives, ready-to-use industrial land, and multimodal logistics infrastructure to attract export-oriented manufacturers and renewable-energy producers. It targets enterprise investors across the Caucasus, Central Asia, and Eastern Europe via a government-led GTM.

Ownership category

akta.pro rank

Product category

Free Economic Zone Authority / Industrial Infrastructure

NAICS

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors (92615), Administration of General Economic Programs (92611)

SIC

Services-Engineering, Accounting, Research, Management (8700)

akta.pro primary industry

Customs Clearance & Border Trade Facilitation (BPAIADAF)

akta.pro secondary industries

Rules of Origin & Free Trade Agreement (FTA) Management (TLAEAOAE), Export Credit Agencies (ECAs) & Trade Finance Institutions (BPADACAF)

Keywords

• Free economic zone
• Industrial land leasing
• Export-oriented manufacturing
• Fiscal incentives
• Logistics infrastructure

Headquarters

HQ city

Baku

HQ country

Azerbaijan

HQ region

Asia

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Operations, Marketing or Sales, Personnel, Technology or R&D

Revenue model

1. Land Plot Leasing: AFEZ generates revenue through long-term leasing of industrial land plots to export-oriented manufacturing companies. Land lease rates are determined individually based on investor proposals, considering factors such as plot size, value added, production scale, investment amount, and number of employees.
2. Office Space Leasing: The One-Stop Shop Business Centre offers office spaces for lease in various sizes to businesses registered in the zone, providing flexible workspaces, meeting rooms, co-working spaces, and associated services.
3. Logistics and Transportation Services: AlatBay Industrial Development (a subsidiary of UAE-based Galanth Group) provides value-added logistics services including warehousing, labeling, loading/unloading, and international transportation within AFEZ, generating revenue from logistics service fees charged to zone legal entities and transit shippers.

Pricing tiers

Go-to-market motion1 record

Distribution channels2 records

Marketing channels5 records

Core offering

Alat Free Economic Zone Authority (AFEZ) provides export-oriented industrial land plot leasing, office space leasing, and a One-Stop Shop Business Centre for licensing and permitting to enterprise manufacturers investing in Azerbaijan. The zone offers a zero-tax fiscal regime (0% corporate tax, VAT, property tax, customs duties, and personal income tax up to 8,000 manat/month), ready-to-use infrastructure, multimodal logistics connectivity via the adjacent Baku International Sea Trade Port and North-South/East-West transport corridors, and a legally independent regulatory framework governed by a dedicated AFEZ Authority.

Product overview

Alat Free Economic Zone (AFEZ) is a free economic zone authority established by the President of Azerbaijan in May 2020, providing a comprehensive ecosystem of interconnected property solutions and business services. The core offering consists of: the One-Stop Shop Business Centre as the primary service delivery point; Office Solutions providing flexible commercial spaces; Land Plots for manufacturing operations; Facilities Management for operational support; Transportation and Logistics services with multimodal connectivity; and a Vocational Training Center for workforce development. Alat Bay Industrial Development operates as a subsidiary logistics provider. Together these services create an integrated investor journey from business establishment through operations, all supported by the AFEZ Authority's unique legal framework and fiscal incentives.

Differentiator

Problem solved

Functional benefit

Products and services

• One-Stop Shop Business Centre Single-point-of-contact business centre staffed by the AFEZ Authority team that provides enterprise investors with on-site business appraisal, licensing, permitting, and other investor services without involvement from base-economy authorities or agencies.
• Office Solutions A three-story office building at the entrance of FEZ 1 offering flexible office spaces, meeting rooms, co-working spaces, and 24/7 security with parking facilities accommodating up to 440 cars including 10 EV charging stations, for businesses registered in the zone.
• Land Plots — Manufacturing Industrial land plots for export-oriented activities including light manufacturing, value-added logistics, and heavy manufacturing. Plots include ready-to-use infrastructure and utilities, with minimum plot area of 2 hectares, maximum 50% site coverage, and maximum three floors or 15 meters height.
• Facilities Management Comprehensive aftercare services for zone tenants including technical maintenance, cleaning, landscaping, 24/7 security, and administration services to ensure functionality, comfort, safety, sustainability and efficiency of the built environment.
• Transportation and Logistics Multimodal transport access via road, rail, sea, and air. Includes a road logistics center on 50,000 square meters with 500,000 tons annual capacity, proximity to Baku International Sea Trade Port (15 million tons annual handling capacity in 2023, growing to 25 million tons), and a new international airport with 500,000 tons cargo capacity annually, expandable to 1.5 million tons.
• Vocational Training Center Custom-built training facility for zone tenants and broader Azerbaijani workforce, partnering with the Ministry of Education, SOCAR, and Azerbaijani universities for programs in machine operators, welders, IT, electricians, mechanical engineering, chemical engineering, CAD, and CAM.

Quantifiable outcome

• AlatBay Logistics Center achieved 41% reduction in energy usage and 26% decrease in water consumption, awarded EDGE ADVANCED GREEN certificate
• +2 more outcomes

Named customers1 record

Segments2 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Six partnerships are on record, tiered strategic, core and supporting.

• U.S. Department of State (Bureau of Economic, Energy, and Business Affairs)strategicStrategic or Co-development Partner · 16 April 2026A delegation from the U.S. Department of State's Bureau of Economic, Energy, and Business Affairs visited AFEZ. Both sides exchanged views on opportunities for future cooperation and expressed strong interest in further strengthening bilateral engagement. The meeting was part of the inaugural Azerbaijan-U.S. Economic Dialogue.
• Small and Medium Business Development Agency of Azerbaijan (KOBIA)strategicStrategic or Co-development Partner · 22 October 2025KOBIA signed a Roadmap with the Serbian Development Agency during the Intergovernmental Commission meeting to facilitate cooperation and project implementation between Azerbaijan and Serbia. AFEZ Authority is involved in cross-border SME development initiatives.
• Ministry of Education of AzerbaijancoreStrategic or Co-development PartnerAFEZ Authority partners with the Ministry of Education to develop vocational training programs for companies establishing in the zone, covering machine operators, welders, IT and systems engineering, electricians, mechanical and chemical engineering, CAD, and CAM. The partnership aims to prepare skilled workforce for zone investors and the broader Azerbaijani economy.
• SOCAR (State Oil Company of Azerbaijan)coreStrategic or Co-development PartnerAFEZ Authority partners with SOCAR to provide new training programs for machine operators, welders, IT and systems engineering, electricians, mechanical engineering, chemical engineering, CAD, and CAM. SOCAR is the state-owned national oil and gas company of Azerbaijan, contributing expertise in industrial training.
• Alat Bay Industrial Development (AlatBay) / Galanth GroupcoreTechnology or IntegrationAlatBay is a subsidiary of UAE-based Galanth Group and was among the first legal entities established in AFEZ. Under license from AFEZ Authority, AlatBay provides value-added logistics services in the zone including warehousing, labeling, loading/unloading, and international transportation. AlatBay operates a green logistics center covering 5 hectares.
• Azerbaijan Technical UniversitysupportingStrategic or Co-development PartnerAFEZ Authority plans to cooperate with Azerbaijan Technical University and other higher education institutions to facilitate specific customized training programs to meet investor needs in areas such as IT, engineering, and technical disciplines.

Scale indicators7 records

Recent moves10 records

Expansion highlights7 records

Broad incumbents

• Jebel Ali Free Zone Authority (JAFZA): JAFZA is one of the world's largest free zones, offering industrial land, office space, and zero-tax incentives to export-oriented manufacturers in Dubai. It is comparable to AFEZ as a direct global benchmark for free-zone value propositions, multimodal logistics access, and government-backed tenant attraction.
• Hamriyah Free Zone Authority (HFZA): HFZA is a UAE free zone offering industrial plots, warehouses, and office space with 100% foreign ownership and tax exemptions to manufacturers and traders. It is comparable to AFEZ as a smaller-to-mid-sized free zone targeting industrial and light manufacturing tenants in the broader EMEA corridor.
• Ras Al Khaimah Economic Zone (RAKEZ): RAKEZ is a UAE-based free zone offering industrial land, offices, and warehousing to manufacturers and traders, with full foreign ownership and tax exemptions. It is comparable to AFEZ as a regional competitor seeking to attract similar export-oriented manufacturing tenants to the Caspian/CIS, South Asia, and MENA corridors.

Emerging players

• Saudi Economic and Development Holding Company (SEDCO) / SEZ Authority: The Special Economic Zones Authority of Saudi Arabia oversees newly established SEZs under Vision 2030, offering tax incentives, customs facilitation, and industrial land. It is comparable to AFEZ as a recently launched government-backed SEZ authority targeting high-value manufacturing FDI with multimodal logistics access.
• Duqm Special Economic Zone (SEZAD): Duqm SEZAD is an Omani government-developed free zone offering port-adjacent industrial land, tax holidays, and multimodal connectivity (sea, road, air) to attract export manufacturers. It is comparable to AFEZ as an emerging state-backed industrial zone built around a strategic deepwater port.

Direct peers

• Suez Canal Economic Zone (SCZONE): SCZONE is an Egyptian state-established free zone authority providing industrial land, customs incentives, and multimodal logistics (sea, road, rail) to export-oriented manufacturers. It is comparable to AFEZ in offering an integrated regulatory authority with fiscal exemptions and corridor-adjacent industrial development.
• Khorgos Special Economic Zone / ICBC: Khorgos is a Kazakh-Chinese cross-border economic zone positioned on the Middle Corridor rail and road routes between China and Europe. It is comparable to AFEZ in serving as a customs-facilitated manufacturing and logistics hub competing for transit-driven FDI along the same China-Europe trade axis.

Others

• Eurasian Economic Commission: The EEC administers customs and trade policy for the Eurasian Economic Union (Russia, Belarus, Kazakhstan, Armenia, Kyrgyzstan). It is comparable to AFEZ as an adjacent enabler governing the rules of origin, tariff treatment, and FTA frameworks that determine the attractiveness of AFEZ-based manufacturing for CIS market access.

Regional players

• Astana International Financial Centre (AIFC): AIFC is a Kazakhstani state-established special economic zone with independent legal framework, English-law courts, and tax incentives for investors. It is comparable to AFEZ as a regional free economic zone authority with English-law dispute resolution and a sovereign-backed legal moat designed to attract FDI to Central Asia.
• Poti Free Industrial Zone: Poti Free Industrial Zone is a Georgian government-operated free zone on the Black Sea offering tax incentives and logistics access for manufacturers. It is comparable to AFEZ as a Caucasus-region free zone that sits on the East-West transport corridor and competes for transit and manufacturing tenants.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/AlatFEZ
• Facebookfacebook.com/alatfez
• LinkedInlinkedin.com/company/afeza

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Alat Free Economic Zone