Azerbaijan's direct foreign investments surge in UAE amid decline in Turkish investments

In 2024, Azerbaijan's direct foreign investments (FDI) in the United Arab Emirates (UAE) reached $457.531 million, marking a significant 4.82-fold increase compared to the previous year.

This surge of $362.712 million now means Azerbaijani investments account for 26 per cent of the total FDI in the UAE, Caliber.Az reports, citing local media.

Simultaneously, the UAE also increased its investment in Azerbaijan’s economy, contributing $490.156 billion in 2024. This reflects a 56.67 per cent rise, with Emirati investments now representing 7 per cent of Azerbaijan's total FDI. Overall, the total foreign direct investment in Azerbaijan’s economy in 2024 amounted to $7.046 billion, reflecting a 5.83 per cent year-on-year increase.

However, Azerbaijan’s direct investments abroad decreased by 43.5 per cent, with $1.762 billion invested in other countries. Turning to 2023, FDI from the UAE into Azerbaijan reached $1.857 billion, while total direct investments in Azerbaijan amounted to $6.658 billion. During that period, Azerbaijan invested $94.819 million in the UAE, out of a total of $3.117 billion in Azerbaijani investments abroad. 

Similarly, Türkiye’s direct foreign investments in Azerbaijan in 2024 totaled $1.219 billion, showing a 6.4 per cent decrease compared to the previous year. This decline represents a reduction of $83.394 million, with Turkish investments now accounting for 17.3 per cent of Azerbaijan’s total FDI. At the same time, Azerbaijan’s investments in Türkiye saw a sharp drop, totaling just $248.957 million in 2024—an 86.28 per cent decline, with Azerbaijani investments in Türkiye making up 14.1 per cent of the total FDI in the country. 

Despite these reductions in bilateral investments, Azerbaijan's overall FDI in 2024 continued to grow, reaching $7.046 billion, up 5.83 per cent from the previous year. Looking back at 2023, Türkiye’s FDI in Azerbaijan stood at $1.302 billion, while Azerbaijan's investments in Türkiye that year amounted to $1.815 billion, contributing to a total of $3.117 billion in Azerbaijani investments abroad.

By Naila Huseynova