25 September 2026, 12:23

The Azerbaijan International Investment Forum (AIIF 2026), held at a time of growing global polarization and severe disruptions in supply chains, has identified key directions for creating new investment opportunities in the country’s non-oil sector and deepening international partnerships. The forum, which opened in Baku, is aimed not only at preserving existing economic ties, but also at further strengthening Azerbaijan’s position in global value chains as one of the safest and most profitable transit and industrial hubs for freely flowing international capital.

Commenting on the issue, Aykhan Gadashov, Head of a Department at the Center for Analysis of Economic Reforms and Communication (CAERC), noted that in today’s reality, where a problem emerging in one part of the world can rapidly bring production in other countries to a halt, Azerbaijan’s efforts to align its economic and logistics infrastructure with global requirements are opening valuable opportunities for non-oil exports. Current economic realities demonstrate that international businesses are primarily seeking stability and reliable infrastructure. In this regard, Azerbaijan is emerging as a key economic driver and security guarantor in the South Caucasus. The fact that USD 7 billion of the USD 10 billion worth of agreements signed at last year’s forum were allocated to the non-oil sector demonstrates that economic diversification in the country is already producing tangible results and that an attractive environment for investors has been established.

A. Gadashov emphasized that the successful completion of major physical infrastructure projects, such as the Port of Baku, the Baku-Tbilisi-Kars (BTK) railway and the Caspian fleet, provides Azerbaijan with an opportunity to further expand its operational capabilities. Azerbaijan has already moved beyond infrastructure development based solely on concrete and steel toward the development of global-scale “smart logistics” and the management of service quality. Today, optimizing traditional customs and border procedures through “paperless trade” mechanisms and artificial intelligence tools is becoming a decisive factor in international freight transportation. Such an innovative and digital approach minimizes time and financial costs along routes passing through Azerbaijan, thereby contributing to the growing interest of global logistics companies in the Middle Corridor.

Explaining the strategic benefits being generated for the country, A. Gadashov noted that Azerbaijan is no longer merely a raw-material-based economy and is increasingly becoming an important B2B partner within global supply chains. The investment policy implemented in the country offers foreign investors a fully integrated ecosystem operating from A to Z. Providing entrepreneurs with ready-to-use infrastructure in industrial parks, allocating subsidies to expand production, ensuring direct access to global markets through the Azexport.az portal once products are ready, and ultimately compensating transportation costs through new logistics subsidies create highly favorable conditions for investors. The most tangible result of this reliable environment, together with efforts to minimize the implementation time of agreements, is that the majority of foreign companies currently operating in Azerbaijan prefer to reinvest their profits in the country rather than repatriating them. The factor of reliability and commitment to long-term obligations is also clearly demonstrated by Azerbaijan’s current role in supplying uninterrupted natural gas to 16 countries, including 10 European Union member states.

Beyond the economic scale of the event, its significance for regional cooperation and the development of industrial clusters is equally profound. Azerbaijan’s emergence as a reliable “Geoeconomic Stability Corridor” for Central Asia, particularly landlocked Uzbekistan, is already yielding results. The 3.6-fold increase in exports of Azerbaijani products to the brotherly country during the first half of this year demonstrates that the two countries are confidently approaching the target of USD 1 billion in bilateral trade turnover. At the same time, the launch of the new 310-hectare Nakhchivan Industrial Park, which will transform Nakhchivan into a logistics hub connecting East and West within the framework of the Zangazur Corridor, will create a fundamental basis for the deep processing of agricultural raw materials from Karabakh and Eastern Zangazur and their subsequent export to Western markets.

Speaking about the “locomotive effect” of investment on the domestic market, Aykhan Gadashov emphasized that the arrival of major multinational corporations in the country generates a positive chain reaction across the local business ecosystem. A prominent example is the AZN 5.3 billion investment expected to be made in the mining industry in the near future, with 80% coming from private capital and 20% from state capital. Local suppliers and contractors are compelled to raise their quality and management standards to international levels in order to meet the requirements of global companies. At the same time, enterprises equipped with the latest technologies represent a direct investment in the country’s human capital. Against the backdrop of closer integration between industry and higher education institutions, this process will contribute to the development of highly qualified professionals equipped with the advanced knowledge and skills required by the future economy.

Overall, the discussions held and targets identified within the framework of AIIF 2026 demonstrate that, against a backdrop of sustained domestic political stability, low public debt, substantial financial buffers and predictable policies, Azerbaijan continues to maintain its position as a safe destination for international capital. This strategic economic course represents a fundamental step toward transforming the country from a raw-material exporter into a global center exporting knowledge-intensive and high-technology products.


Center for Analysis of Economic Reforms and Communication
www.ereforms.gov.az