Farid Shafiyev highlights impact of regional instability on reconstruction efforts

“Azerbaijan possesses significant experience and expertise in post conflict reconstruction that it can share with the international community. The country is currently implementing a large scale reconstruction program in the Karabakh and East Zangezur regions, territories comparable in size to Lebanon and devastated by decades of conflict.”

This was stated by Farid Shafiyev, Chairman of the Board of the Center of Analysis of International Relations (AIR Center), during his remarks at the event titled “The Middle East Crisis and Its Impact on Global Housing and Urban Development”, organized by UN-Habitat with the support of the Nizami Ganjavi International Center.

“Since 2020, Azerbaijan has allocated more than 14 billion U.S. dollars for the restoration of the liberated territories, including the construction of roads, airports, schools, hospitals and residential settlements. However, global and regional price increases driven by ongoing conflicts in the Middle East could significantly raise reconstruction costs. Azerbaijan’s reconstruction strategy largely depends on imported construction materials, equipment and logistics networks that are vulnerable to regional instability and rising energy prices.

Higher construction costs could slow down the implementation of the ‘Great Return’ program, which envisages the return of internally displaced persons to Karabakh. Azerbaijan plans to facilitate the return of approximately 140,000 former residents during the initial phase. However, inflationary pressures, demining expenses and supply chain disruptions are already affecting housing and infrastructure projects,” Shafiyev noted.

Concluding his remarks, the AIR Center chairman stressed that restoring logistics routes and removing financial barriers to business operations have become urgent priorities.