BAKU, Azerbaijan, September
28. Azerbaijan is strengthening its position as a
regional investment hub, political analyst Azer Garayev told
Trend.
According to him, at a time when global supply chains are being
restructured, energy markets are shifting, and capital is seeking
safer and more predictable destinations, the 2nd Azerbaijan
International Investment Forum in Baku broadened the focus beyond
the country's specific investment opportunities. The forum
showcased how Azerbaijan views its position amidst global economic
changes and identified the sectors it considers key sources of
future growth.
"The event's theme wasn’t chosen at random: 'Restoring Trust in
a Fragmented World: The South Caucasus as a Pillar of Global
Connectivity and Investment Stability.' The agenda covered a
diverse range of areas—such as the Middle Corridor, energy, the
green transition, artificial intelligence, digital transformation,
infrastructure, critical raw materials, agribusiness, financial
cooperation, and human capital, that complement each other in
shaping the future economy.
The significance of the forum cannot be measured solely by the
number of high-level meetings held in Baku. The crucial aspect is
bringing global investors together on a single platform with
projects across various sectors that require capital. The outcomes
of the first Azerbaijan International Investment Forum established
a solid foundation in this regard. The inaugural forum, held in
2025, attracted nearly 1,000 participants and saw the signing of
agreements worth over $10 billion. Projects in the non-oil sector
accounted for more than $7 billion of this total.
Meanwhile, the second forum demonstrated the enduring nature of
this platform. The discussions went beyond merely showcasing
Azerbaijan's own investment opportunities; they also focused
heavily on the South Caucasus's evolving economic role, the
expansion of connectivity between Europe and Asia, and the
formation of new energy routes," he said.
Garayev noted that this very diversity is one of the key
characteristics of Azerbaijan's investment potential.
"The country has traditionally participated in major
international energy projects. However, in recent years, the
investment agenda has gradually expanded to encompass logistics,
renewable energy, the digital economy, industry, agriculture, and
other sectors. During the forum, President Ilham Aliyev also
outlined the priority areas Azerbaijan will focus on in the next
stage of development. According to him, more than $350 billion in
investment has been attracted to the country over the past 20
years, with foreign direct investment accounting for half of that
amount: We need to be in line with the general trend of economic
development and use our potential in sectors beyond oil and gas to
achieve long-term and sustainable growth." This opinion highlights
one of the key economic challenges facing Azerbaijan. The country's
goal is not to abandon the energy sector but to increase the weight
of new investment areas while preserving its established energy
base. In the President's address, renewable energy, logistics and
transport, mining, digital infrastructure, and food security were
prioritized precisely from this perspective," the analyst
noted.
According to him, renewable energy is one of the major focus
areas of this new phase. Azerbaijan possesses significant wind
energy potential within its sector of the Caspian Sea. This
potential extends beyond mere electricity generation; the
development of transmission lines, energy storage systems, and
regional electrical interconnections in the coming period could
also expand investment opportunities.
"Transport and logistics are equally important. Azerbaijan is
situated at the crossroads of the East-West and North-South
corridors. However, the economic value of this position is not
defined solely by geography." "Investments in railways, ports,
highways, air transport, and customs infrastructure serve to
transform Azerbaijan's transit potential into a tangible economic
advantage. At the forum, President Ilham Aliyev announced the goal
of increasing the volume of transit cargo passing through the
country to 25 million tons or more by 2030," he explained.
The analyst emphasized that, in this context, physical and
digital connectivity are now integral parts of the same chain
within Azerbaijan's future investment strategy.
"The fact that artificial intelligence and data centers were
discussed as separate topics at the forum illustrates this point.
Favorable energy resources, the country's location between Europe
and Asia, and new fiber-optic connections are bringing to the fore
the idea of Azerbaijan becoming a regional hub for digital
infrastructure. In his address, President Ilham Aliyev also
highlighted the country's low external debt, foreign currency
reserves, experience with long-term contracts, and stable
investment climate as key factors influencing investor decisions:
“We just need to create an environment. We just need to provide
some room for that.” This approach encapsulates the essence of the
forum. An investment forum is not merely a venue for companies to
present their projects; such events serve as a platform for the
state to demonstrate the terms offered to investors, the areas
where cooperation is sought, and the resources upon which the
future development of the economy is to be built," the analyst
noted.
Garayev pointed out that another significant aspect of the forum
held in Baku was the discussion of the economic potential of the
South Caucasus as a whole, alongside that of Azerbaijan. The
expansion of transport and energy connections in the region
enhances access to new markets. Furthermore, the deepening of
Azerbaijan's ties with Central Asia creates conditions for viewing
this region as part of a broader economic chain.
"Thus, the 2nd Azerbaijan International Investment Forum
signified much more than just a single event. The forum
demonstrated Azerbaijan's intention to integrate its established
energy and infrastructure capabilities with new technologies, the
digital economy, green energy, and regional connectivity. It’s no
coincidence that Baku hosted such a platform. In the upcoming
investment phase, the key objective for Azerbaijan is not merely to
attract more capital, but to channel that capital into new economic
sectors and generate greater added value by leveraging the
country's regional connectivity potential. The 2nd Azerbaijan
International Investment Forum became a crucial platform for
Azerbaijan to present itself to global investors in precisely this
context," the analyst added.
