President Aliyev: South Caucasus peace opens new opportunities for trade, investment

The emerging peace in the South Caucasus is creating new opportunities for regional cooperation, connectivity, trade and investment, while supporting deeper economic integration and diversification, Azerbaijani President Ilham Aliyev said in an address to participants of the 2nd Azerbaijan International Investment Forum in Baku.

In the address, President Aliyev said the changing global economic environment, reshaped supply chains and the emergence of new transport, energy and technological links were increasing the importance of stability, connectivity and reliable partnerships for investors, Caliber.Az reports per state media.

“It is gratifying that this Forum once again brings together in Baku governments, international organizations, financial institutions, leading companies, investors and business communities from around the world,” he said.

The president said the forum's theme, “Rebuilding Trust in a Fragmented World: The South Caucasus as a Pillar of Global Connectivity and Investment Stability,” was particularly relevant as global economic relations undergo rapid change.

He said Azerbaijan's economy had shown resilience amid global uncertainty and geopolitical challenges, while economic diversification remained a strategic priority.

According to Aliyev, the non-oil sector has become a key driver of economic growth. Since 2020, real GDP growth in the non-oil sector averaged 5% annually, while non-oil industry grew 1.5-fold and non-oil exports nearly doubled. The share of the non-oil sector in GDP reached 72% in 2025, he said.

“This momentum rests on a stable and predictable business environment,” the president said, pointing to macroeconomic stability, investment conditions and the country's entrepreneurial environment as foundations for long-term investor confidence.

He also highlighted Azerbaijan's geographical position, transport and logistics infrastructure, economic zones, tax and customs incentives, public-private partnership mechanisms and joint investment funds established with partner countries as areas offering opportunities for international investors.

Aliyev said Azerbaijan's strategic partnerships and growing foreign investment in the non-oil sector were supporting the country's integration into global value chains, particularly in manufacturing, trade, energy, digital transformation, artificial intelligence and advanced technologies.

He also pointed to international credit ratings as evidence of Azerbaijan's financial resilience, saying Fitch and Moody's had upgraded the country's sovereign credit ratings to investment grade. He said Fitch's outlook was “stable” and Moody's outlook was “positive.”

Azerbaijan's strategic currency reserves exceeded 110% of GDP at the end of 2025, Aliyev said.

The president also emphasized Azerbaijan's role in regional transport connectivity, describing the country as an important link between Asia and Europe because of its position at the intersection of the East-West and North-South corridors.

He said the Middle Corridor connects Central Asia across the Caspian Sea with the South Caucasus, Türkiye and Europe, while the emerging Zangezur Corridor, also known as the TRIPP connectivity route, would further strengthen Azerbaijan's role as a regional hub.

“The emerging Zangezur Corridor, also known as the TRIPP connectivity route, will further strengthen Azerbaijan's role as a regional hub, and create new opportunities for trade, investment and industrial cooperation across Eurasia,” Aliyev said.

Energy remained another major area of regional cooperation, with Aliyev describing Azerbaijan as a reliable energy partner for a growing number of countries.

He said Azerbaijan's vision was increasingly extending beyond conventional energy supplies toward green energy corridors that could integrate renewable energy into regional markets and strengthen links between Azerbaijan, the wider South Caucasus, Central Asia and Europe.

Beyond the energy sector, Aliyev highlighted opportunities in manufacturing, transport and logistics, renewable energy, digital technologies, agriculture and food processing, tourism and infrastructure. He also pointed to reconstruction and development opportunities in the territories affected by the conflict.

“Particular importance is attached to projects that introduce advanced technologies, raise productivity, create skilled employment and strengthen our integration into regional and global value chains,” he said.

The president also highlighted industrial parks, modern infrastructure, the Alat Free Economic Zone and public-private partnership mechanisms as instruments intended to facilitate long-term investment.

Aliyev said Azerbaijan's investment strategy was not focused solely on attracting capital but also on bringing technology, expertise, innovation and access to new markets.

“Our approach to investment goes beyond attracting capital. We value technology, expertise, innovation and access to new markets, and seek partnerships that create sustainable value for investors, while strengthening the modernization and competitiveness of Azerbaijan's economy,” he said.

The president said the first Azerbaijan International Investment Forum had demonstrated growing international interest in the country. Investment agreements worth more than $10 billion were signed at last year's forum, he said, with more than $7 billion linked to the non-oil sector.

He added that participation had expanded at this year's forum, with greater representation from international institutions, investors and leading companies.

Aliyev said the broader participation reflected confidence in Azerbaijan and the growing economic significance of the wider region.

“I expect that within the framework of the 2nd Azerbaijan International Investment Forum, significant investment projects will be launched with international investors and partner companies,” he said.

He expressed confidence that discussions at the Baku forum would produce concrete initiatives and longer-term cooperation, contributing to stronger economic ties, greater connectivity and shared prosperity across the region.