Azerbaijan bets on Economic Cooperation Organisation Expanding horizons

In its efforts to diversify foreign economic relations, Azerbaijan has prioritised business integration with Türkiye, the Central Asian countries, and other regional partners. A key instrument in this strategy is strengthening cooperation with member states of the Economic Cooperation Organisation (ECO), where several important joint projects are underway.

Recently, the 6th ECO Business Forum was held in the historic city of Shusha, with the goal of expanding regional business ties. This event, launched at the initiative of Azerbaijan’s President Ilham Aliyev, took place as part of “ECO Week,” which also featured youth and women’s forums on July 1–2.

The Economic Cooperation Organisation was established by Türkiye, Iran, and Pakistan back in 1985 as an intergovernmental body aimed at strengthening economic, technical, and cultural cooperation. Since 1992, the format and structure of the ECO have significantly expanded following the accession of seven additional countries — Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, Turkmenistan, Afghanistan, and Azerbaijan. Notably, this organisation became one of the first international bodies to which Azerbaijan gained membership after regaining its state independence.

The ECO region covers a geographically vast and populous area, home today to more than 500 million people in total. Over the years, the organisation's prestige and level of international representation have noticeably increased: since 1995, it has held observer status at the United Nations and later assumed a similar position in the Organisation of Islamic Cooperation (OIC).

Initially, cooperation among ECO member countries was largely focused on local economic issues. However, in recent years, the organisation has expanded its scope to address a wide range of regional matters, including political and humanitarian issues, as well as collaboration in defence, environmental protection, and more.

Being a full-fledged member of the ECO for 33 years, Azerbaijan chaired the organisation in 2023, a year marked by the motto “Green Transition and Mutual Connectivity.” Over the years, Azerbaijan has hosted numerous international ECO conferences, systematically contributing to the achievement of the organisation’s goals. Recently, the ECO Business Forum kicked off in the city of Shusha, jointly organised by the Ministry of Economy, the Export and Investment Promotion Agency (AZPROMO), the ECO Secretariat, and the Chamber of Commerce and Industry (ECO-CCI) of this international organisation.

Dedicated to the theme “Investment and Trade Promotion as a Catalyst for Sustainable Development in the ECO Region,” the forum aims to become a key platform for expanding economic ties among ECO member states, strengthening cooperation between business communities, and supporting all initiatives geared towards sustainable regional development. Specifically, the event brought together over 170 businesspeople from ECO member countries to discuss partnership opportunities in the agricultural and food sectors, textile industry, ICT, tourism, transportation, and circular economy. In Shusha, meetings were held in “business-to-government” (B2G) and “business-to-business” (B2B) formats, alongside an organised visit by entrepreneurs to the Aghdam Industrial Park.

“For our country, trade relations are the foundation of regional integration, and in recent years positive trends have been observed in this area for the business sector: for example, from January to May this year, the trade turnover between Azerbaijan and ECO member countries reached $3.5 billion, representing a 10% increase year-on-year,” said First Deputy Minister of Economy Elnur Aliyev. “We continue this momentum by expanding bilateral agreements, reducing barriers, and opening markets. Azerbaijan has currently concluded free trade agreements with five member states of the organisation, as well as preferential trade agreements with Türkiye and Pakistan, and these instruments further strengthen trade throughout the ECO region.”

According to Aliyev, investment cooperation between Azerbaijan and ECO member states is actively developing, and to protect investments, the country and its partners have signed a number of bilateral agreements. As of June 1 this year, more than 10,000 companies from ECO countries are actively operating in Azerbaijan, and overall, since 1995, over $22 billion have been invested by member states in key sectors of the country’s economy.

“Thanks to its strategically important location at the crossroads of South Asia, Central Asia, the Middle East, and Europe, the ECO region possesses enormous potential for establishing and developing economic and transport connectivity, including the creation of energy corridors and the expansion of transport and logistics links. One of the strategic drivers of partnership within the ECO region is the Middle Corridor, which plays a major role in connecting Asia with Europe, and Azerbaijan holds an important position in turning this corridor into an efficient trade artery within the framework of the Belt and Road Initiative,” emphasised Elnur Aliyev.

Specifically, Azerbaijan has invested billions of dollars in its transport infrastructure, becoming one of the key logistics hubs of Eurasia along the East-West and North-South corridors, and this infrastructure is now available to other ECO participants through partnership projects.

Kazakhstan is also strengthening its position as a key transit hub in the ECO region, according to Asan Zhakishev, Deputy Chairman of the Foreign Trade Chamber of Kazakhstan and participant of the Shusha Forum: “Our country is actively developing infrastructure along the North-South and East-West directions; the maritime ports of Aktau and Kuryk, the dry port of Khorgos are being expanded, and large-scale projects for modernizing the railway network are underway, creating favourable conditions to increase transit volumes and optimise supply chains.”

Kazakhstan pays special attention to the Trans-Caspian International Transport Route (TITR): in 2024, the volume of cargo transported along this route reached 4.5 million tonnes, and active work is currently underway on the digitalization of logistics, the unification of procedures, attracting investments into infrastructure hubs, and creating a reliable foundation for the route’s development.

Similar efforts are being made by another active ECO member — Türkiye, which places great importance on the Zangezur Corridor project.

“With the implementation of this project, an East-West corridor will be put into operation, accessible to all,” said Ali Kopuz, First Vice President of the Turkish Chamber of Commerce and Industry (TOBB), at the forum in the city of Shusha. “There is a strong demand in the region to expand transport and logistics infrastructure, and it is also necessary to increase trade and improve working conditions. Additionally, we must strengthen efforts to attract investors.”

According to the First Vice President of TOBB, Azerbaijan’s rapidly growing economy offers extensive opportunities for joint business projects.

Indeed, Azerbaijan’s investment appeal and openness to cooperation within the ECO framework are facilitating the implementation of new collaborative initiatives, including in the fields of industry, transportation, renewable energy, and digital technologies.

“The Business Forum in Shusha provides broad opportunities to unlock the potential of the ECO and also makes a significant contribution beyond the organisation,” said Yusif Abdullayev, Executive Director of AZPROMO, at the event in Shusha. “Our Agency supports the implementation of various projects within the ‘roadmap’: this year, joint forums have been held with Iran and Pakistan, projects with leading Turkish business entities are underway, a Turkish-Azerbaijani Business Forum was recently held in Ankara, and a memorandum was signed.”

According to the head of AZPROMO, diversifying cooperation within the ECO region requires focusing on deepening trade relations, including expanding the export potential of small and medium-sized businesses (SMBs). To achieve this, it is necessary to implement new mechanisms for logistical support and help SMBs master digital trade and logistics tools. Plans include creating a digital platform to promote trade between member countries and increasing the number of trade and industrial exhibitions.

The ECO region still holds significant growth potential, including the development of joint high-value-added manufacturing and the creation of sustainable supply chains. This can be further advanced by expanding cross-border investments in green energy, digital technologies, infrastructure, and agribusiness. In particular, according to Yusif Abdullayev, tourism and the textile sector are promising areas for expanding cooperation within the ECO, as all member countries possess extensive experience in these fields.

The listed projects and other initiatives will be steadily implemented across the ECO region, and to accelerate this work, the organisation’s leadership has prepared two important documents.

“The Memorandum of Understanding on Cooperation in Joint Activities to Promote Trade among ECO Member States has been finalised and is ready for signing as of late June 2025. The main goal of this document is to improve coordination and strengthen our joint efforts to promote intra-regional trade, investment, and business cooperation,” stated ECO Secretary-General Asad Majeed Khan in Shusha, urging all member states to complete their internal procedures as soon as possible and proceed with signing the document.

The Secretary-General also reminded that the drafting of the Agreement on Mutual Administrative Assistance in Customs Matters among ECO countries has been completed and is currently open for signing by the government.