Baku draws global capital: AIIF 2026 raises the bar Overview by Khazar Akhundov

Against the backdrop of the energy crisis, trade and tariff disputes, and other tensions, significant risks remain that could trigger another downturn in the global economy. Against this backdrop, platforms for dialogue and finding compromises among the world’s leading economic centres are in particularly high demand. The Azerbaijan International Investment Forum (AIIF 2026), held under the patronage of President Ilham Aliyev, is emerging as such a platform. This is confirmed by the fact that the combined value of assets under the management of the event’s participants amounts to around $30 trillion. On the second day of the forum, the head of state addressed the event on the theme “Restoring Trust in a Fragmented World: The South Caucasus as a Pillar of Global Connectivity and Investment Stability.”

Stability as the main magnet

Political and economic stability is the main magnet attracting long-term investment. This is an axiom that requires no proof, as investors seeking to minimise risks and protect their capital focus on predictability and the long-term sustainability of government policies as the key criteria when choosing a country in which to invest. Ideal conditions also include a robust legal system that ensures compliance with contractual obligations, as well as stable monetary and macroeconomic indicators.

As Azerbaijan’s leader noted in his address at AIIF 2026, political and economic stability, as well as security, maintained in the country for more than three decades, have been critically important factors in its progress. This also applies to the oil agreements signed under the “Contract of the Century”, which provided impetus for the development of the oil and gas sector in the decades that followed.

“Investments and the contracts which actually led to development in the oil and gas sector and were signed 30 years ago are still absolutely untouched. Not a single word was changed, and that was one of the factors that attracted investors,” the head of state noted, stressing that this has enabled Azerbaijan to build a highly reliable investment portfolio.

The country’s policy of neutrality and its peace agenda make Azerbaijan highly attractive to global companies – sources of capital and innovation. Today, many leading companies regard Azerbaijan as a reliable partner across various sectors of the economy. These facts are reflected in regular reports by international financial institutions and rating agencies.

As President Ilham Aliyev noted in his address, Azerbaijan is geographically located in the South Caucasus, but from political, economic and transport perspectives, it has become a full-fledged member of the Central Asian region: “And also, the administration, digitalization of transportation, customs administration, and very clear and understandable regulatory rules in Azerbaijan—all of that will strengthen our potential.”

In this regard, the head of state also recalled that Azerbaijan is located at the crossroads of transit routes and is one of the few countries actively participating in the East–West and North–South transport corridors: “If the geopolitical situation in our region changes and goes back to how it was five years ago, we will still be attractive to suppliers.”

Progress at the point of convergence

In his address, the head of state also outlined areas of interest to investors in Azerbaijan – namely, infrastructure serving transnational interests, primarily transport, logistics and other physical infrastructure. At the same time, the country is advancing digitalisation and customs administration while simplifying cargo clearance procedures.

Among the priority areas for the development of the domestic economy, he highlighted the vast potential for power transmission lines and renewable energy sources (RES), where Azerbaijan has considerable opportunities to develop solar and wind power plants. “Our target is to reduce to minimum degree the consumption of natural gas to generate power, and to use that reserve for export. And renewables will be in the coming five years everywhere in Azerbaijan,” Ilham Aliyev stressed.

In his address, the head of state also drew attention to the “State Program on the Development of Mining (Metal Ores) and Metallurgical Industry in the Republic of Azerbaijan for 2027–2030”, adopted just days ago, noting that it provides for a wide range of measures and that these represent the key areas of our development. The head of state also stressed that oil and gas should not be overlooked: “This year many contracts were signed and are to be signed today. So, oil and gas will continue to dominate our economy and to generate the wealth which will be reinvested.”

Noting that Azerbaijan exports oil, natural gas, petroleum products, petrochemical products and fertilisers, Ilham Aliyev focused attention on the country’s ambition to become a major electricity exporter, particularly to the European market. At the same time, with additional energy capacity at its disposal, Azerbaijan can make maximum use of it domestically to develop AI and establish data centres. Emphasising the successful management experience accumulated in the oil and gas sector, Ilham Aliyev said that although oil and gas currently account for more than 90% of the country’s exports, cooperation with international partners continues to help reduce their dominance in the export structure.

As is well known, human potential and accumulated expertise are central to the country’s sustainable development. In this context, the President of Azerbaijan stressed that the country’s nearly universal literacy rate and extensive work in the field of education play an important role in strengthening human capital.

Interest backed by signatures

The sessions and business meetings held on the sidelines of AIIF 2026, where the country’s investment priorities were discussed, testify to the strong interest of international partners in Azerbaijan. On the second day of the forum, in the presence of President Ilham Aliyev, a signing ceremony was held for more than ten memoranda and agreements, mainly between SOCAR and leading global companies in the energy sector.

The documents cover investment decisions on the development of the Absheron gas condensate field, upstream exploration and production projects, natural gas and LNG, production-sharing arrangements for unconventional hydrocarbon resources in the Middle Kura Basin, as well as initiatives to digitalise the country’s oil sector, among other areas. Other documents provide for the establishment of a tripartite joint venture and expanded partnership in beer production. Of particular note is the investment agreement between the Alat Free Economic Zone and a company from Hong Kong.

The Baku Congress Centre also served as a venue demonstrating the effectiveness of concrete investment initiatives. President Ilham Aliyev participated online in a groundbreaking ceremony at the Mingachevir Industrial Park, where the Textile Cluster project of Textile Horizon LLC was launched. A similar ceremony was held for the commissioning of the 3.2 MW Minkend Hydroelectric Power Plant in Azerbaijan’s Lachin district.

The meetings held by the President of Azerbaijan with the heads of leading global companies and asset management firms as part of AIIF 2026 proved highly productive, identifying key areas of mutual interest and discussing promising avenues for business cooperation.

The discussions brought together such international investment firms as Global Infrastructure Partners (GIP), Brookfield Asset Management and Neuberger Berman. Major institutional investors, including Franklin Templeton, PGIM, KKR and Ares, as well as the Türkiye Wealth Fund, Singapore’s Temasek and others, also took an active part in the forum in Baku.

Thus, the Azerbaijan International Investment Forum, held under the patronage of President Ilham Aliyev, once again demonstrated its importance as a platform for business dialogue. This is underscored by the scale of capital represented by participants in the events held on the sidelines of AIIF 2026 – as noted above, the total value of assets under their management amounts to around $30 trillion.