UK, Azerbaijan urged to pursue joint ventures as business ties expand

There is significant potential for the United Kingdom and Azerbaijan to establish joint ventures across a range of sectors, Dr. Ilona Karpanos, Representative for International Trade and Economic Development at the Cambridge Chamber of Commerce, said.

Speaking at the Second Azerbaijan International Investment Forum (AIIF 2026) in Baku, Karpanos said bilateral economic cooperation should move beyond simply increasing exports and focus on building broader strategic partnerships, Caliber.Az reports via local media.

“I think we need to focus more on building strategic partnerships through broader networks. Chambers of commerce and other regional networks help bridge the gap between our two countries,” she said.

Karpanos said Cambridge had extensive experience in developing international partnerships involving universities, research institutions, businesses and joint ventures.

She said regional networks could help connect businesses more closely with decision-makers at universities, business centres and in the life sciences sector, while also supporting efforts to attract investment.

“In my experience and view, investment should flow both ways. We need to identify what our businesses have, what capabilities they possess and how these can match demand in particular markets,” she said.

Karpanos also said she would lead a UK business delegation to Azerbaijan next week for the ADEX exhibition, bringing together companies from the defence, security and cybersecurity sectors.

“A total of 16 businesses have joined the delegation, and interestingly, some of them are from life sciences and supply sectors rather than strictly defence and security. So the interest and appetite are there. We simply need to identify the right partners and the right joint ventures and bring them together,” she said.

She identified Azerbaijan's geographical position and economic diversification as two major advantages for British businesses.

“Azerbaijan has two main strengths. The first is its geographical location, its proximity to Europe and Asia, and easy access to important regional and domestic markets. The second is diversification,” Karpanos said.

She noted that Azerbaijan's efforts to diversify its economy beyond hydrocarbons were creating opportunities in sectors where UK companies have expertise.

“They can bring that expertise into the bilateral relationship and create benefits for both countries,” she said.

Karpanos also stressed that British business opportunities extend well beyond London, pointing to Cambridge, the Midlands, Wales, Scotland and Huntingdonshire as important centres with strong business ecosystems.

She highlighted energy, green energy, high technology, FinTech, AgriTech, BioTech, life sciences and advanced manufacturing as sectors that align with Azerbaijan's current industrial strategy and could contribute to stronger bilateral economic ties.

Karpanos further emphasised the importance of supporting small and medium-sized enterprises (SMEs), which she said often face greater difficulties in accessing capital and entering international markets.

“SMEs are often at a disadvantage when it comes to raising capital. We should remember that they do not have large international teams experienced in building businesses globally. They have to focus on developing and managing their businesses while also figuring out how to enter international markets,” she said.

While multinational companies make significant contributions to both economies through their large assets, Karpanos said SMEs remain the driving force of every economy, underscoring the need for targeted support to help them expand internationally.

By Sabina Mammadli