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Qabil Ashirov

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In recent years, the UAE has emerged as a key partner for Azerbaijan, not only as a market for Azerbaijani businesses but also as a hub for regional investments. Both countries are actively exploring new sectors for joint investment, particularly in renewable energy, technology, and infrastructure development. This growing flow of investment reflects the mutual desire to strengthen bilateral economic and political ties, making the UAE an increasingly important partner for Azerbaijan on the global stage.

Recently, the Central Bank of Azerbaijan reported that from January to September of this year, direct investments from Azerbaijan into the economy of the United Arab Emirates (UAE) amounted to $431 million. This figure represents a 5.4-fold increase compared to the same period in 2023, equivalent to an additional $352 million. This sharp rise signifies a significant strengthening of economic ties between Azerbaijan and the UAE.

The trend of increased investment is expected to continue, with both countries looking to deepen their cooperation in various sectors, further boosting trade and economic growth. Particularly in renewable energy, the two nations have established a special partnership that aims to leverage their respective strengths and resources. This sector is crucial as both countries seek to diversify their energy sources and enhance sustainability.

Speaking to Azernews on the issue, economist Vugar Bayramov said that in recent years, the economic and political relations between Azerbaijan and the United Arab Emirates (UAE) have been expanding. He recalled that not only does Azerbaijan invest in the UAE's economy but also the UAE makes investments in Azerbaijan’s economy.

“Particularly, there has been a special cooperation between the two countries in the field of renewable energy. Naturally, there are both economic and strategic reasons for the increasing share of Azerbaijani investments in the UAE economy,” the economist said.

Vugar Bayramov pointed out that the development of relations between the two countries makes the UAE economy attractive to both state and private companies. As a result, investments are being directed towards the country’s economy.

“On the other hand, the UAE is also considered one of the countries with an attractive economy in terms of profitability. All these factors naturally facilitate the flow of more investments into the UAE economy.

In general, the UAE has become one of the leading countries in terms of attracting foreign investments. The country has attracted a significant amount of foreign investments, which makes it an appealing destination for profit-oriented ventures,” he noted.

Bayramov underlined that there are also political reasons behind this trend. Political relations between the countries are dynamically developing, and this factor influences mutual investments in each other’s economies.

“For Azerbaijan’s economy, foreign investments are beneficial overall. The country not only attracts investments but also directs its investments abroad. Through its investment projects abroad, Azerbaijan can increase its revenues and generate more income. In this regard, managing investments abroad also helps to increase the volume of funds flowing back to the country. Therefore, investments directed abroad, including those in the UAE, represent new sources of income for Azerbaijan’s economy,” V.Bayramov concluded.