Trade between Azerbaijan, Germany exceeds $1.1 billion in 2024

Between January and September 2024, Azerbaijan's trade turnover with Germany surpassed $1.1 billion, making Germany the country’s sixth-largest trading partner, according to Yusif Abdullayev, Executive Director of the Export and Investment Promotion Agency of Azerbaijan (AZPROMO).

Speaking at the high-level Azerbaijani-German Business Forum on "Green Transformation" held during COP29, Abdullayev noted that, as of October 1, there has been a marked increase in activity from German companies in Azerbaijan, Caliber.Az reports via local media.

Since 1995, Germany has invested over $871 million in Azerbaijan, with 94% of this investment directed towards the non-oil sector. Over the same period, Azerbaijan has also made significant investments in Germany, totalling $592 million.

To recap, Germany maintains a diversified economic partnership with Azerbaijan, spanning both energy and non-energy sectors. Cooperation between the two nations has grown rapidly in recent years, especially in industries such as food, petrochemicals, metallurgy, tourism, and transport services.

This expansion is reflected in trade, where Germany is one of Azerbaijan's top partners, ranking eighth in foreign trade and fourth in imports. In 2022, trade turnover exceeded $1.25 billion, with a near balance between imports and exports.

Energy remains a key component of the relationship, with Azerbaijan primarily exporting oil, including $563.7 million worth to Germany. German companies are crucial in the oil and gas sector, but their involvement also extends to renewable energy, infrastructure projects, and advanced technology solutions.

Over 200 German businesses are registered in Azerbaijan, with around 170 in the Azerbaijan-German Chamber of Commerce. Germany’s Siemens has long been involved in Azerbaijan’s energy sector, having commissioned a 525 MW power plant in Sumgayit in 2009.

Further opportunities for collaboration were discussed during President Ilham Aliyev’s visit to Germany in March 2023. One focus was the development of transport infrastructure, with Azerbaijan investing heavily in its ports and railways. German firms are encouraged to participate in these projects, as well as in the reconstruction of Azerbaijan’s Karabakh region, where a German company has already contributed to the Fuzuli airport’s construction.

Industrial cooperation remains the most promising avenue for future growth. Notable joint ventures include SOCAR and Uniper’s collaboration on a steam and power generation upgrade at Azerkimya’s plant, as well as a new aluminium rolling plant being developed by the Azerbaijan Industrial Corporation and German firm Achenbach Alpha.

Both projects reflect Germany's strong position in Azerbaijan’s industrial development, particularly in energy-efficient and green technologies.

By Aghakazim Guliyev