The recent official visit of Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, to Azerbaijan can rightly be described as a new milestone in relations between Azerbaijan and the UAE, and more broadly, in Baku’s ties with the Gulf monarchies. The reception organized by the Azerbaijani side and the intense one-day program turned the visit into an event of not only symbolic but also practical significance.
The high guest’s arrival in Fuzuli, in the Karabakh region, was a demonstration of the UAE’s recognition of the new realities following the restoration of Azerbaijan’s territorial integrity, while also confirming the Gulf state’s readiness to strengthen its presence in the South Caucasus in light of Azerbaijan’s achievements — and those of President Ilham Aliyev personally — in shaping post-conflict regional realities. This point was repeatedly emphasized by the Emirati leader during the visit.
The visit was given particular weight by its economic and investment dimension. In recent years, the UAE has become the largest Arab investor in Azerbaijan: the total volume of investments has exceeded USD 1 billion, of which USD 356 million was made in the first nine months of 2024 alone. Trade also shows impressive dynamics: in 2024, non-oil trade increased by 43 percent to reach USD 2.24 billion, accounting for half of Azerbaijan’s total trade with the Gulf Cooperation Council states. These figures underline that cooperation between the two countries has become one of the key drivers of Azerbaijan’s non-oil economic growth.
Energy took a special place in the talks. While in earlier years cooperation focused mainly on oil and gas, today the emphasis is shifting toward diversification and the “green” agenda. The energy company ADNOC acquired a stake in the Absheron project, while SOCAR participates in the development of the SARB and Umm Lulu fields in the UAE. This reflects mutual interests and provides a solid foundation for long-term partnership.
Even more significant, however, are joint renewable energy projects. Masdar, together with SOCAR, is implementing large-scale initiatives with a total capacity of around one gigawatt: solar power plants in Bilasuvar (445 MW) and Neftchala (315 MW), and a wind farm in Absheron-Garadagh (240 MW). These projects carry not only economic but also strategic value — they will allow Azerbaijan to save large volumes of natural gas annually, redirect it for export, and reduce CO₂ emissions, thus advancing the country’s energy transition goals. By 2030, Azerbaijan plans to produce around 30 percent of its electricity from renewable sources, with the UAE’s contribution proving decisive.
The signing of a Comprehensive Strategic Partnership Agreement between Azerbaijan and the UAE marked an important step in strengthening bilateral relations, giving them new quality and long-term perspective. For Azerbaijan, the agreement opens the door to substantial growth in investment, especially from Emirati funds and companies already showing interest in the country’s energy, infrastructure, agricultural, and technology projects. At the same time, the strategic framework reduces the risks of short-term initiatives and creates a basis for complex cooperation covering both traditional oil and gas and the rapidly expanding renewable sector. Azerbaijan gains the opportunity to accelerate economic diversification by developing new industries such as digital technologies, innovation, agriculture, and tourism, while strengthening its position as a transit hub linking Caspian, Caucasus, European, and Middle Eastern markets.
For the UAE, strategic partnership with Azerbaijan means expanding its sphere of influence and consolidating its economic presence in the South Caucasus. The Emirati side gains access to new projects in “green” energy and sustainable development, where the UAE has long sought to secure leadership positions, while also reinforcing its trade and logistics chains through access to Caucasus and Central Asian markets. Azerbaijan, in turn, becomes a platform for the UAE not only to implement large-scale investment projects but also to transfer technological and managerial expertise.
The humanitarian aspect of the talks was equally significant. UAE support in demining and restoring liberated territories lays the groundwork for future construction projects — housing, roads, and social infrastructure needed for the return of displaced persons. Thus, the UAE’s participation becomes an element of the broader revival program for Karabakh and adjacent areas, where humanitarian assistance grows into investment activity contributing to the region’s long-term economic development.
The personal and trusting communication between President Ilham Aliyev and Sheikh Mohamed bin Zayed stood out as vivid proof not only of strong interstate ties but also of the special spiritual closeness of the two leaders, who demonstrate complete mutual understanding in assessing complex political processes both in the South Caucasus and the Middle East. Today, this very closeness serves as the cementing foundation for bilateral interaction, determining its trajectory for years to come.
Ilgar Velizade
