EDB: Gulf countries pour $606 million into Azerbaijan, focus on energy sector

Gulf countries invested $606 million in Azerbaijan as of the end of the first half of 2025, according to a report by the Eurasian Development Bank (EDB) titled “The Eurasian Region and Partner Countries in Asia: Analysis of Investment Flows based on EDB Monitoring of Mutual Investments.”

The EDB noted a sharp increase in investment from Gulf states into the Eurasian region. In the first half of 2025, the total volume of investment reached $23.9 billion, 3.2 times higher than in 2016 and 60% more than in 2023, Caliber.Az reports per local media. 

During the first six months of 2025, investors from the Persian Gulf launched 10 new projects worth about $1 billion. Once fully implemented, the total cost of these initiatives is expected to exceed $6.5 billion.

Since 2016, the number of active Gulf-backed projects in the region has risen to 55. In 2025 alone, five projects were launched in Uzbekistan, three in Kazakhstan and two in Azerbaijan.

The United Arab Emirates remains the largest investor in the Eurasian region, accounting for 68% of total Gulf investments, or $16.1 billion. Saudi Arabia follows with 18% ($4.2 billion), Qatar with 10% ($2.4 billion), and Oman with 5% ($1.1 billion).

According to the report, nearly 96% of Gulf investments are directed to Central Asia. Smaller amounts have gone to Azerbaijan ($606 million), Armenia ($174 million), Georgia ($157 million), Kyrgyzstan ($75 million) and other countries.

In Azerbaijan, the UAE’s Masdar is implementing two solar power plant projects in the Neftchala and Bilasuvar districts. When fully implemented, investments in the projects will amount to $383 million for the 315 MW Neftchala plant and $283 million for the 445 MW Bilasuvar plant.

By sector, Gulf investments are mainly concentrated in oil and gas and electric power. About 43% of total investments are linked to an oil production project in Turkmenistan, while another 35% is distributed across 29 electricity projects in Uzbekistan and Azerbaijan, mainly in renewable energy.

The EDB noted that in recent years Arab investors have increasingly been seeking to diversify their assets, exploring new investment opportunities in Azerbaijan, Georgia and Armenia.

Uzbekistan remains the main destination for Saudi Arabian capital, accounting for about 93% of its accumulated investments in the region, with the remainder directed to Azerbaijan.

By Sabina Mammadli