BAKU, Azerbaijan, January 13. Azerbaijan’s partnership with the United Arab Emirates (UAE) is a shining example of how countries with shared values and aspirations can collaborate effectively across diverse fields. From business and trade to renewable energy and climate initiatives, the two nations have built a robust relationship that continues to grow and evolve.
In recent years, the economic cooperation between Azerbaijan and the UAE has seen remarkable progress. In January-November 2024, the trade turnover between the two countries reached $88.92 million. For 2023, this figure stood at $1.6 billion, encompassing non-oil imports, exports, and re-exports.
Investments between the two nations also reflect this deepening bond. Azerbaijan invested $65.8 million in the UAE economy in the first quarter of 2024, a 2.9-fold increase from the same period in 2023. On the other hand, UAE investments in Azerbaijan amounted to $190.7 million, a 3.5-fold growth compared to the previous year. Cumulatively, the UAE has invested $3.2 billion in Azerbaijan, while Azerbaijan’s investments in the UAE total approximately $1 billion. These figures highlight the increasing trust and strategic alignment between the two economies.
Climate change has emerged as a critical area of cooperation between Azerbaijan and the UAE. The UAE, which hosted COP28 in 2023, shared its extensive experience in organizing large-scale international climate events with Azerbaijan, aiding its preparation for hosting COP29 in 2024. This marked the first such event in the regions of the South Caucasus and Central Asia, underlining Azerbaijan’s growing global importance in addressing climate challenges.
The Troika mechanism, comprising the UAE, Azerbaijan, and Brazil, ensures continuity and coherence in climate negotiations by connecting the host countries of consecutive COP conferences. This collaboration has allowed Azerbaijan to benefit from the expertise and support of its partners, strengthening its contributions to global climate initiatives.
Hosting COP29 has provided Azerbaijan with a unique platform to highlight its environmental challenges and solutions while fostering new partnerships for sustainable development. The Troika mechanism exemplifies the critical role of international cooperation in addressing climate change.
Energy remains a cornerstone of the Azerbaijan-UAE partnership. The State Oil Company of Azerbaijan Republic (SOCAR) and the UAE’s Abu Dhabi National Oil Company (ADNOC) have established strong ties in the oil and gas sector. At the same time, the two nations are focusing on renewable energy to support a global green energy transition.
Azerbaijan aims to generate 30% of its electricity from renewable sources by 2030. UAE-based Masdar is a pivotal partner in this mission, leading projects like the Garadagh Solar Power Plant. With a capacity of 230 MW, the plant is expected to produce 500 million kWh of electricity annually, reducing emissions by over 200,000 tons. Masdar and SOCAR are also exploring offshore wind energy and hydrogen projects with a combined capacity of 2 GW, showcasing the depth of their collaboration in renewables.
Both Azerbaijan and the UAE place significant emphasis on sustainable economic development. Abu Dhabi Sustainability Week (ADSW), currently underway in the UAE, is a global initiative supported by the UAE and Masdar. It aims to accelerate sustainable development and foster progress across economic, social, and environmental dimensions. President Ilham Aliyev’s participation in the event is also anticipated.
In January 2023, President Ilham Aliyev attended the opening of Abu Dhabi Sustainability Week, where he commended the UAE’s remarkable advancements in sustainability. "I want to congratulate the President and the people of the UAE on their tremendous achievements in rapid development. Under your leadership, Mr. President, the UAE transformed into one of the world’s most stable, developed, and successful countries. And we, your brothers in Azerbaijan, are really proud of what you are doing."
During the event, President Ilham Aliyev also highlighted Azerbaijan’s achievements in renewable energy development. "We in Azerbaijan develop renewable energy sources not to provide our energy security. We did it many years ago. Today, Azerbaijan not only satisfies all its needs with energy but also exports crude oil, oil products, natural gas, petrochemicals, and electricity. Our program with respect to renewables has an entirely different agenda. First, because there is enormous potential. Second, it will help us diversify our export and, of course, create a new ecologically-friendly sector of our economy," the head of state stated.
The dynamic partnership between Azerbaijan and the UAE exemplifies how shared aspirations can lead to impactful cooperation across multiple sectors. While energy, trade, and climate initiatives form the backbone of their relationship, the continuous high-level engagement underscores their mutual commitment to exploring untapped potential.
Under President Ilham Aliyev's leadership, Azerbaijan's balanced foreign policy has earned the country equal respect from partners in both the East and the West. Its strong relationship with the UAE exemplifies this strategy, showcasing how mutual respect and shared objectives can lead to lasting and productive cooperation.