BAKU, Azerbaijan, September 25.The 2nd Azerbaijan International Investment Forum opened today in Baku, bringing together leading international investors, representatives of government agencies, financial institutions and business circles. The two-day forum being held under the patronage of the President of Azerbaijan Ilham Aliyev is dedicated to the theme "Rebuilding Trust in a Fragmented World: The South Caucasus as a Pillar of Global Connectivity and Investment Stability".
The scale of the forum reflects the level of interest in this agenda. More than 3,000 participants registered for the event, including 803 foreign representatives from 70 countries. Government officials, representatives of international financial institutions, investors, and heads of companies and think tanks gathered at the venue.
Amid the restructuring of global supply chains, trade tensions, and persistent geopolitical uncertainty, Azerbaijan aims to establish itself not only as an attractive investment destination but also as a regional platform facilitating the flow of capital, technology, goods, and energy resources to markets in the South Caucasus, Central Asia, and Europe.
In his address to the forum participants, President Ilham Aliyev noted that macroeconomic stability, investments, and favorable conditions for entrepreneurship in the country create a solid foundation for long-term investor confidence.
“Azerbaijan's strategic geographical location, transport and logistics capabilities, well-developed infrastructure in economic zones, tax and customs incentives, as well as public-private partnership mechanisms and joint investment funds established with partner countries, offer investors broad opportunities to participate in sustainable projects and to build partnerships that bring technology, capital and expertise to the whole region,” the head of state said.
In this context, it is significant that 11 documents were signed between Azerbaijan and foreign partners during the event, covering areas such as construction and development, the digital economy, renewable energy, high-tech manufacturing, agriculture, veterinary medicine, pharmaceuticals, banking investments, water resource management, and investment promotion. This composition indicates that Azerbaijan’s investment agenda is becoming increasingly diversified and gradually extending beyond traditional energy projects.
Last year, investment agreements totaling over $10 billion were signed at the inaugural Azerbaijan International Investment Forum, with more than $7 billion of that amount allocated to the non-oil and gas sector. The current agenda continues this trend.
The signed documents include a cooperation agreement on construction and development between Azerbaijan’s Ministry of Economy and ROX Group, a memorandum of cooperation with Microsoft to develop Azerbaijan’s digital economy, and an agreement with ROX Group regarding solar and wind energy projects.
A distinct area of focus involves the development of manufacturing capabilities. Plans are in place for cooperation within the Alat Free Economic Zone to produce silicon carbide, silicon oxide, and silicon using new technologies. This is particularly important for industrial diversification: the objective is no longer merely to attract capital for existing infrastructure but to establish production facilities targeting more technologically advanced sectors.
Three additional documents pertain to the agricultural sector, veterinary medicine, and pharmaceuticals. Specifically, these cover the establishment of Azerbaijani-Swiss plantations and processing facilities (ABAK-WASSERSTEIN), a project to build a poultry complex in Aghdam, the production of veterinary vaccines, and the creation of a pharmaceutical manufacturing plant. Thus, the investment landscape is expanding in two directions simultaneously: moving from large-scale infrastructure and energy projects toward manufacturing and processing, and shifting from raw-material industries to sectors with higher value-added potential.
The agreement regarding the Azerbaijan-Oman Direct Investment Fund’s acquisition of a non-controlling stake in Azer-Turk Bank JSC stands out as a distinct development. It demonstrates that investment cooperation is viewed not merely as a means of financing new enterprises but also as a way to participate in existing economic infrastructure.
Another document outlines cooperation between Esyasoft, the State Water Resources Agency of Azerbaijan, and SOCAR. This initiative is significant for the technological transformation of core infrastructure. Water, energy, and digital technologies increasingly intersect in modern investment projects, while the digitalization of resource management is emerging as a key driver of economic efficiency. Finally, Azerbaijan and Ukraine signed an agreement on investment promotion cooperation between AZPROMO and UkraineInvest.
In this way, the forum simultaneously fosters new projects and expands institutional channels for attracting further capital.
Why diversification becoming central theme
This is of strategic importance to Azerbaijan. While the energy sector remains a core competitive strength, the country’s investment strategy is gradually evolving toward a broader model—one in which energy is complemented by industry, transport, logistics, digital technologies, agriculture, the financial sector, and renewable energy.
Meanwhile, particular emphasis is placed on projects capable of bringing in technology and capital, boosting labor productivity, creating skilled jobs, and integrating Azerbaijan into regional and global value chains. Indeed, the shift from simply attracting capital to generating value-added output is a pivotal element of the current investment agenda. Against this backdrop, Azerbaijan’s geographical location takes on particular significance. CEO and Managing Partner of the Italian TEHA Group, Valerio De Molli, identified three areas that could serve as the foundation for the country’s future competitiveness: the Middle Corridor and logistics, the digital economy, and energy.
He specifically highlighted Azerbaijan’s advantages regarding transport links between China and Europe. He noted that the route via the Suez Canal takes about 30 days and the route around the Cape takes approximately 40 days, whereas the Trans-Caspian route can reduce this time to around 12 days.
For Azerbaijan, the value of this advantage lies in more than just the potential increase in transit volumes. The development of transport routes creates conditions for the emergence of new manufacturing and logistics hubs around them, thereby enabling transit to generate broader economic benefits.
It’s precisely here that investment policy and the development of the Middle Corridor intersect.
Middle Corridor: next stage goes beyond infrastructure
The Middle Corridor emerged as a central theme of the forum, with discussions extending well beyond the construction of railways and ports.
Rahman Hummatov, Deputy Minister of Digital Development and Transport, announced that Azerbaijan’s transit freight volume is expected to exceed 16 million tons by 2026. This is roughly three times the pre-pandemic figure recorded in 2019. Specifically, freight volume along the Middle Corridor could reach approximately 5.5 million tons by 2026, with the number of regular container trains from China hitting around 600.
According to forecasts by international organizations, freight volume along the Middle Corridor could approach 11 million tons by 2030, while container transit could reach 900,000 TEUs annually. However, further growth in these figures will depend on more than just physical infrastructure.
Deputy Minister of Finance and Economy of Turkmenistan, Perhat Yagshiev, emphasized that enhancing the competitiveness of the Middle Corridor requires a comprehensive approach. The first level involves physical infrastructure: railways, road routes, ports, terminals, and logistics centers. Ensuring sufficient throughput capacity across all sections of the route is essential. The second level concerns the speed and predictability of transport. For businesses, the ability to accurately forecast timelines is just as important as shipping costs. Consequently, the harmonization of tariffs, schedules, cargo handling procedures, and operator coordination becomes a critical factor.
The third level is digitalization. Electronic document management, advance notification of customs authorities, and the integration of information systems across ports, railways, and other stakeholders can significantly reduce cargo transit times. It is the combination of these three elements—infrastructure, organizational coordination, and digital solutions—that will determine the route's future competitiveness.
Azerbaijan building not just corridor, but economic ecosystem
For its part, Azerbaijan is already implementing a comprehensive approach. The country identifies the Baku-Tbilisi-Kars railway, the Baku International Sea Trade Port, and the under-construction Horadiz-Aghband railway as key pillars of the Middle Corridor. At the same time, a broader logistics and economic ecosystem is taking shape around Alat. The cargo airport currently under construction in Alat is set to complement the region's multimodal capabilities and support the development of the Alat Free Economic Zone.
A significant outcome of the forum was that the Middle Corridor was viewed through a lens broader than just China-Europe transit. Uzbekistan’s Minister of Investment, Industry and Trade, Laziz Kudratov, said in an exclusive interview with Trend that the volume of freight transport between Uzbekistan and Azerbaijan via the Middle Corridor has more than doubled over the past few years. Uzbekistan aims to increase its trade turnover with Azerbaijan to $2 billion within the next few years.
Moreover, this involves more than just an increase in trade. Uzbekistan is investing in Azerbaijan’s textile sector and participating in joint automotive manufacturing projects. Conversely, Azerbaijan is investing in Uzbekistan’s mining, energy, and food sectors, as well as in real estate. New projects are also being discussed in pharmaceuticals, construction materials, agriculture, and food processing. Thus, the investments themselves begin to generate additional freight flows.
Damirbek Bikulov, a representative of the National Investment Agency of Kyrgyzstan, outlined a similar prospect. In an exclusive interview with Trend, he said that Azerbaijan could serve as a "gateway" to European markets for Kyrgyzstan, while Kyrgyzstan could become a partner for Azerbaijan in Central Asia. He specifically highlighted the potential of the Azerbaijan-Kyrgyzstan Development Fund for projects in tourism, agriculture, and heavy industry.
Consequently, the Middle Corridor is gradually taking on an additional function: it is becoming a mechanism for expanding investment ties between the countries.
Energy remains pillar, but changes structure
The second major component of the new model is energy. Azerbaijan remains a key energy partner for European markets; however, the country's energy strategy is gradually expanding to include renewable energy. A document signed at the forum regarding solar and wind energy projects in Azerbaijan demonstrates that this transformation is already being reflected in the concrete investment agenda.
In his address to the forum participants, President Ilham Aliyev noted that Azerbaijan's energy vision is increasingly extending beyond mere energy supply to encompass the development of green energy corridors.
"Azerbaijan is a reliable energy partner for a growing number of countries. Our vision increasingly extends beyond energy supply to the development of green energy corridors, enabling the integration of renewable energy into regional markets and strengthening connectivity between Azerbaijan, the wider South Caucasus, Central Asia and Europe," the head of state said.
This opens up the prospect of linking energy strategy with transport and regional connectivity. In the long term, Azerbaijan aims to simultaneously strengthen traditional energy ties with Europe and develop renewable energy, which could serve as the foundation for new regional energy routes.
Expanding geographic scope: from U.S. and Europe to Middle East
The forum also highlighted the widening circle of Azerbaijan's potential partners. Natig Bakhishov, Executive Director of the U.S.-Azerbaijan Chamber of Commerce (USACC), noted the heightened interest among American companies in Azerbaijan and the broader South Caucasus and Central Asia region. According to him, following the August summit and the resumption of more active U.S. government engagement with the region, American companies have shown greater confidence, and the USACC is receiving numerous inquiries on a weekly basis.
At the same time, the geographic scope of investment contacts is extending to the Middle East. Syria has expressed interest in expanding cooperation with Azerbaijan in trade, technology, energy, agriculture, and industry.
In an interview with Trend, Syrian Minister of Economy and Industry Mohammad Nidal Al-Shaar highlighted the existing experience of cooperation in the gas sector and the positive impact of Azerbaijani gas supplies on the country's energy provision. He stated that the establishment of a Joint Business Council between the two countries should provide an additional mechanism for exploring investment opportunities and developing business ties.
Peace and regional integration as new investment factor
The changing regional context is of particular significance.
In his address to the forum participants, President Ilham Aliyev noted that the emerging peace in the South Caucasus creates new opportunities for regional cooperation, transport connectivity, trade, and investment, while fostering deeper economic integration and diversification.
For the business community, this signifies a potential expansion of the economic landscape, where infrastructure projects can operate not in isolation, but as components of a unified regional system. In this context, the Middle Corridor, new energy links, and the growth of trade between the South Caucasus and Central Asia mutually reinforce one another.
The more production and investment ties established between countries, the greater the potential demand for transport infrastructure. Conversely, more efficient infrastructure lowers trade costs and enhances the economic appeal of new investment projects. That is precisely why the continued development of the Middle Corridor cannot be viewed solely as the responsibility of transport authorities; it is simultaneously a matter of industrial policy, trade, investment, digitalization, and regional integration.
Thus, the 2nd Azerbaijan International Investment Forum illustrates a gradual shift in Azerbaijan’s role within the regional economy: moving from a nation offering investors isolated projects to one providing access to an emerging economic system that links energy, manufacturing, digital technologies, and transport with the markets of Europe, the Caucasus, and Central Asia.
