BAKU, Azerbaijan, September 25. Azerbaijan is becoming a production hub between Central Asia and Europe, Minister of Economy Mikayil Jabbarov said at the 2nd Azerbaijan International Investment Forum held in Baku today, Trend's correspondent reports from the event.
According to him, Azerbaijan's geographical location, developing transport infrastructure, and long-term investments have transformed the country into a key economic and logistics hub connecting Central Asia, the South Caucasus, Türkiye, and Europe.
The minister noted that investors want assurance that the commitments they undertake and the conditions underpinning their investment decisions will remain stable and sustainable in the long term.
"Azerbaijan’s domestic political stability, policy consistency, relatively low public debt, substantial financial reserves, and predictable policymaking provide a solid foundation for investors. This foundation is further strengthened by geopolitical developments in the region at a time when connectivity between Central Asia and the South Caucasus is becoming a reality," Jabbarov pointed out.
According to him, a key aspect of Azerbaijan's investment policy is the establishment of predictable regulations and their effective implementation.
"Transparent rules, investment protection, and reliable dispute resolution form the basis of our economic policy. We are also shortening the time gap between the signing of an agreement and its implementation. To this end, a special commission led by the Deputy Prime Minister is currently accelerating strategic investment projects and coordinating efforts among various government agencies," the minister explained.
Jabbarov emphasized that, despite being a landlocked country, Azerbaijan has transformed into an international transport hub through long-term policies and sustained investments.
"Today, the East-West and North-South corridors passing through our territory are operational in both directions. The Baku International Sea Trade Port, the Baku-Tbilisi-Kars railway, our merchant fleet, and the Caspian cargo fleet are just a few elements of the Middle Corridor, which connects Central Asia with the South Caucasus, Türkiye, and Europe via the Caspian Sea," he mentioned.
The minister announced that, by working together with partner nations, Azerbaijan has established safe and reliable routes along these corridors.
"The volume of cargo transportation is increasing annually, and the potential is even greater. In its 2023 assessment, the World Bank estimated that appropriate investments and efficiency measures could triple trade flows along the Middle Corridor and halve transit times by 2030," Jabbarov said.
According to him, the development of the Middle Corridor is also reflected in the European Union's approach to this route.
Jabbarov highlighted that the construction of the sections of transport corridors within Azerbaijan has largely been completed, and the primary focus of the next stage will be on enhancing the quality of services.
"The construction of the sections of these corridors within our territory is complete, but the next phase is about quality—specifically, the quality of service. The goal is to ensure that the routes through Azerbaijan are not only secure in the current geopolitical climate but also competitive in terms of cost and time," the minister underscored.
He also noted that increasing investments in digitalization and artificial intelligence-based solutions, in cooperation with partner states, serves precisely this objective.
"Logistics terminals, digital services, and the industrial sectors emerging around them create additional opportunities for targeted investments," Jabbarov said.
The minister further noted that the peace process in the South Caucasus is opening up new opportunities for the region's economic and investment potential. "In August 2025, the leaders of Azerbaijan and Armenia signed a joint declaration and initialed a peace agreement with the participation of the US President. This transformed the situation in the South Caucasus and boosted the investment and economic capitalization of the broader Central Asia-South Caucasus region," he clarified.
According to Jabbarov, peace opens up access to previously unreachable markets, supply chains, and investment opportunities.
"We are striving to transition from transport corridors to economic corridors; therefore, our priority is to transform this into a diversified, export-oriented economy led by the private sector," the minister stressed.
He noted that from 2021 through 2025, the non-oil and gas sector in Azerbaijan saw an average annual real growth of 6%, the non-oil industry expanded by 50%, and non-oil and gas exports nearly doubled.
"In 2025, the non-oil and gas economy accounted for 71% of GDP, and this figure is expected to reach 82% by 2030," said Jabbarov.
Furthermore, the minister highlighted the expansion of Azerbaijan's economic ties with Central Asia.
"In November 2025, Azerbaijan became a full participant in the Consultative Meeting of the Heads of State of Central Asia format. In practical terms, Azerbaijan and Central Asia are increasingly coordinating their approaches to transit, logistics, energy, and investment," he noted.
Jabbarov emphasized that these processes are creating new opportunities for companies operating in Azerbaijan.
"For a company based in Azerbaijan, this signifies a production base connected to Central Asian markets on the one hand, and to Türkiye and Europe on the other," the minister added.
