The City of Novi Pazar is located in the highland area of southwestern Serbia.
It is situated 280 km south of Belgrade, in the valley of 5 rivers, surrounded by the mountain peaks of Golija, Rogozna and the Pešter Plateau, while to the north-east it is open to the massif of Mt. Kopaonik.
The development potential of Novi Pazar includes agriculture and the textile, wood processing and footwear industries.
Agricultural land covers almost half of the territory (36,270 ha), of which meadows account for 29.55%, pastures for 41.30%, plough-fields for 23.77% and orchards for 5.38%.
The output of the textile industry is about 10 million items of clothing per year, of which 70% is exported to the markets of Bosnia, Croatia, Montenegro, EU countries and Russia. The production capacities of 50 companies in the footwear manufacturing business are about 3.1 million, while the actual output volume amounts to around 120,000 pieces of footwear a year.
The wood processing industry is a well-developed sector that is based on the rich local raw material base and considerable capacities of the upholstered and non-upholstered furniture industry.
The International Music Festival of the Old Town - a pop music song contest – is the center of cultural life and it was established in 2004.
In the immediate vicinity of the Novi Pazar - Raška main road there is an industrial zone covering an area of approximately 42 ha, where a customs station is located with the associated infrastructure. Projects implemented through European PROGRES include the introduction of a geographic information system, the development of a detailed regulation plan for a wastewater treatment plant, the development of the main design for the rehabilitation of the Golo Brdo landfill, and the development of the main design for the construction of the pumping station and the intake and pushout pipeline Paričko brdo.