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Akbar Novruz

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Kazakh companies are expanding into the Azerbaijani market with significant support from the "QazTrade" Trade Policy Development Center, which has been facilitating their entry into various sectors including food, textiles, and mechanical engineering. More than 10 Kazakh companies have already entered the Azerbaijani market so far, benefiting from the program's comprehensive assistance in finding local partners, negotiating, and signing contracts.

In his interview with Azernews, Dr Umud Shokri, Senior Visiting Fellow at George Mason University, shared his perspective on the promising growth of trade turnover between Kazakhstan and Azerbaijan, highlighting the strategic initiatives fueling this expansion.

How do you envision the growth of trade turnover between Kazakhstan and Azerbaijan in the coming years?

"The trade turnover between Kazakhstan and Azerbaijan is projected to experience significant growth in the coming years, supported by recent trends and strategic initiatives. In the first three months of 2024, trade turnover exceeded $162 million, reflecting a 31.6% increase compared to the same period last year, indicating a strong upward trajectory in bilateral trade. This builds on positive historical trends, as seen in 2023 when trade turnover reached $529.4 million, a 14.2% increase from 2022. Both countries have set an ambitious goal of achieving $1 billion in trade turnover, demonstrating their shared commitment to strengthening economic ties through government support, strategic partnerships, and high-level meetings.

Several initiatives are fueling this growth. Kazakhstan's "QazTrade" Trade Policy Development Center actively supports Kazakh companies entering the Azerbaijani market, with approximately 190 companies participating in export acceleration programs. Additionally, the diversification of traded goods into sectors like food, textiles, and mechanical engineering broadens economic collaboration beyond traditional industries. This, combined with existing growth momentum and joint government efforts to expand trade and economic relations, lays a strong foundation for sustained growth. With these factors in place, the trade turnover between Kazakhstan and Azerbaijan is likely to continue its robust expansion, potentially reaching or even surpassing the $1 billion target in the near future."

In your opinion, what unique value do Kazakh companies bring to Azerbaijan’s market that differentiates them from competitors?

"Kazakh companies have the potential to bring significant value to Azerbaijan’s market by leveraging their strengths across a variety of sectors. In agriculture, Kazakhstan, as a major wheat exporter with $95.7 million worth of exports to Azerbaijan in 2022, can offer advanced agricultural technologies and expertise to enhance Azerbaijan's farming sector. Similarly, the energy sector offers opportunities for collaboration, with Kazakhstan’s refined petroleum exports to Azerbaijan reaching $84.8 million in 2022. Kazakh companies can contribute specialized knowledge in oil and gas operations, fostering stronger ties between the two energy-rich nations. Additionally, Kazakhstan’s growing industrial base positions its companies to bring expertise in metallurgy, metalworking, and chemical industries, further diversifying industrial partnerships.

Beyond traditional sectors, Kazakh firms are well-positioned to contribute in emerging and strategic areas. Companies from Kazakhstan span industries such as food production, textiles, and mechanical engineering, introducing a diverse product range to Azerbaijan’s market. With Kazakhstan's strategic position in the Middle Corridor, its firms can enhance Azerbaijan’s role in trans-Eurasian trade by providing innovative logistics and transportation solutions. The establishment of a joint investment fund also enables Kazakh companies to bring capital and expertise into developing new industries, particularly in Azerbaijan’s liberated territories. By facilitating cross-border trade and capitalizing on cultural similarities and strong bilateral relations, Kazakh firms can play a pivotal role in strengthening economic cooperation and fostering long-term growth between the two nations."