From business and trade to renewable energy and climate initiatives, the relationship between the two countries has grown stronger and continues to evolve dynamically.
In recent years, economic cooperation between Azerbaijan and the UAE has achieved remarkable milestones. From January to November 2024, trade turnover between the countries reached $88.92 million. In 2023, the figure stood at $1.6 billion, encompassing non-financial imports, exports, and re-exports.
Investments between the two nations underscore the deepening of their economic ties. In the first quarter of 2024, Azerbaijan invested $65.8 million in the UAE’s economy—2.9 times more than the same period in 2023. Similarly, UAE investments in Azerbaijan totaled $190.7 million, a 3.5-fold increase from the previous year. Overall, the UAE has invested $3.2 billion in Azerbaijan’s economy, while Azerbaijani investments in the UAE are approximately $1 billion. These figures highlight mutual trust and strategic cooperation between the two economies.
Climate change has emerged as a key area of collaboration. The UAE, as the host of COP28 in 2023, shared its expertise in organizing major international climate events with Azerbaijan. This cooperation enabled Baku to prepare for COP29 in 2024, marking the first such event in the Caucasus region and reinforcing Azerbaijan’s growing role in the global climate agenda.
The “Troika” mechanism, involving the UAE, Azerbaijan, and Brazil, has ensured continuity and coherence in climate negotiations. Through this collaboration, Azerbaijan has drawn upon its partners’ experiences to strengthen its international position in climate initiatives.
COP29 provided Azerbaijan with a platform to highlight its environmental challenges and present sustainable solutions while fostering international partnerships for development. The “Troika” mechanism underscores the importance of global cooperation in combating climate change.
Energy remains the backbone of Azerbaijan-UAE relations. Azerbaijan’s State Oil Company (SOCAR) and the Abu Dhabi National Oil Company (ADNOC) have established strong ties in the oil and gas sector. Special attention is given to joint projects in renewable energy, supporting the global transition to a “green” economy.
Azerbaijan aims to generate 30% of its electricity from renewable sources by 2030. UAE-based Masdar plays a pivotal role in this mission, implementing projects like the Garadagh Solar Power Plant. With a capacity of 230 MW, the plant will produce 500 million kWh of electricity annually, reducing carbon emissions by over 200,000 tons. Masdar and SOCAR are also exploring offshore wind and hydrogen technology projects with a combined capacity of 2 GW.
Both nations prioritize sustainable development. The Abu Dhabi Sustainability Week (ADSW), currently underway in the UAE, is a global initiative supported by the UAE and Masdar, aiming to accelerate progress across economic, social, and environmental dimensions. Azerbaijani President Ilham Aliyev is expected to participate in the forum.
In January 2023, President Aliyev attended the ADSW opening ceremony, commending the UAE’s remarkable achievements in sustainability. “I would also like to congratulate the president and the people of the UAE on their tremendous progress. Under your leadership, Mr. President, the UAE has become one of the most stable, developed, and successful countries in the world. We, your brothers in Azerbaijan, are very proud of what you have achieved,” Aliyev remarked.
The President also highlighted Azerbaijan’s progress in renewable energy: “Azerbaijan has developed renewable energy not to ensure its own energy security—we achieved that many years ago. Today, Azerbaijan not only fully meets its energy needs but also exports crude oil, oil products, natural gas, petrochemical products, and electricity. Our renewable energy program has a different agenda. First, this sector has immense potential. Second, it diversifies our exports. And third, it creates a new environmentally friendly sector in our economy.”
The vibrant partnership between Azerbaijan and the UAE demonstrates how shared goals and values can form the foundation for effective collaboration. Energy, trade, and climate initiatives are central to their relationship, with continuous high-level dialogue highlighting their commitment to unlocking untapped potential.
Azerbaijan’s balanced foreign policy, led by President Ilham Aliyev, has earned the country respect from both East and West. Its strong ties with the UAE exemplify this strategy, showing how mutual respect and common goals can lead to long-term, productive partnerships.
