Ministry of Defence Industry of Azerbaijan The Ministry of Defence Industry of Azerbaijan ( ) is a governmental agency within the Cabinet of Azerbaijan in charge of design , manufacturing , regulation and maintenance of products in the fields of defense , radio electronics , instrument engineering . The Ministry was established on December 16 , 2005 by presidential decree . The new Ministry , headed by Yavar Jamalov , incorporated the State Departments for Military Industry and for Armaments and the Military Science Center , each of which was formerly a separate agency within the Azerbaijani Defense Ministry . Background . Azerbaijan has a desire to become a major arms exporter to the South Caucasus , Central Asia and Middle East . It was announced in January 2008 that the defence industry of Azerbaijan would begin to manufacture armoured personnel carriers and infantry fighting vehicles , as well as small calibre artillery guns . Whether this has actually taken place is unclear . The new ministry is cooperating with the defence sectors of Ukraine , Belarus and Pakistan . In 2008 several more military factories were created in Azerbaijan . According to Sumarinly , the MDI has been in talks with various Israeli defense firms and two Turkish companies about the production of an armored vehicle based on the Russian T - 55 tank ’ s chassis . MDI will also provide 30 South - African - designed Matador and Marauder armored vehicles to the army . In March 2011 the MDI presented its prototype of an Austrian - designed four - seater known as the Diamond DA - 42 military passenger plane . The plane is assembled by AZAD Systems , an Azerbaijani state - owned firm . Overall , Azerbaijani military production more than doubled between 2009 and 2010 , and the product line expanded by 17 percent , according to MDI . Enterprises . Enterprises of the Ministry include : Cooperation . The Ministry ’ s enterprises co - operate with partners in many foreign countries in following areas : Recently , the Turkish firms of ASELSAN and MKEK has signed a deal with Azerbaijan . ASELSAN has been awarded to co - produce monocular night vision sights and thermal scopes ( sniper rifles etc . ) with Azerbaijan . Makina Kimya Endüstrisi Kurumu ( MKE ) has been awarded a contract worth $ 1 . 150 . 000 to produce weapons , ammunition , chemicals and other materials . Besides the contract , MKEK will also take part in the assistance of modernization of the Azeri defense industries . Azerbaijani - made prototypes of Orbiter 2M Unmanned aerial vehicle are expected to undergo testing for up to two years . Full - scale production won ’ t begin before 2013 , under the existing timetable . Production of drones has started at Azad Systems , a joint venture between Azerbaijan ’ s Defence Industry Ministry and Israeli manufacturer Aeronautics . Air Force . The country is also manufactures Israeli - designed spy planes . Among the licensed pilotless spy plane is the Orbiter - 2M and the Aerostar . Both are manufactured at the government - owned Azad Systems Company plant near Baku . The head of the Defense Industry , Yaver Jamalov , said that by the end of 2011 a total of 60 UAVs will be produced . Navy . In May 2011 , President of the State Oil Company of Azerbaijan Republic Rovnag Abdullayev stated that Azerbaijan will start the production of national warships after 2013 . Current production . In 2008 , Azerbaijan revealed the Istiglal IST - 14 . 5 . An anti - material rifle , which can be taken down into 2 separate components for easy transportation . The rifle is said to be operable in adverse weather such as rain and dirt with temperature ranges from 50 to - 50 degrees Celsius . The rifle is operated in several countries . In 2011 , Azerbaijan has begun producing AK - 74M assault rifles under a license from the Russian armaments manufacturer Izhmash . The assault rifles are being produced for the Azerbaijani Armed Forces under the name " Khazri " . In addition to production of Istiglal IST - 14 . 5 and AK - 74M , Azerbaijan has also been producing the following weapon systems : Potential future projects . Murad Bayar , the undersecretary for Turkish Defense Industries , said that Turkey aimed to manufacture new tanks for the Turkish Armed Forces . " Some of these tanks could be manufactured in Azerbaijan , and some can be produced in Turkey , joint production with Azerbaijan in line with this country ` s needs in the future . " Bayar told . Azerbaijani - made prototypes of Orbiter 2M Unmanned aerial vehicle are expected to undergo testing for up to two years . Full - scale production won ’ t begin before 2013 , under the existing timetable . Production of drones has started at Azad Systems , a joint venture between Azerbaijan ’ s Defence Industry Ministry and Israeli manufacturer Aeronautics . According to the Azerbaijani APA agency in November 2010 , " Azerbaijan is in the negotiations with some other countries on helicopter production . " - said by the Minister of Defence Industry of Azerbaijan , Yavar Jamalov . He also mentioned that recently the Ukrainian Premier Minister offered Azerbaijan joint production of 100 helicopters and it is possible . According to him , the Ministry of Defence Industry of Azerbaijan is in the negotiations with some other countries as well as Ukraine .