BAKU, Azerbaijan, October 9. Since gaining independence, all post-Soviet states began under nearly the same conditions - shattered economies, instability, and uncertainty. Yet only a few managed to turn those challenges into opportunities. Azerbaijan stands out as one such example - a country that, despite war, occupation, and the displacement of over a million refugees and internally displaced persons, has achieved remarkable progress and become one of the region’s most successful nations. This transformation is the result of the strategic and visionary leadership of President Ilham Aliyev.
Azerbaijan has not only strengthened its military capabilities and liberated its occupied territories but has also successfully reintegrated them into the national economy. Peace in the South Caucasus today brings benefits far beyond the region itself: Azerbaijan has secured stability at home while reshaping the political and economic landscape across the region - opening up new opportunities for investment, trade, and prosperity. Immediately after the Victory, Azerbaijan took the initiative in launching a peace process based on respect for sovereignty and territorial integrity. The Washington meeting on August 8 of this year marked a milestone for peaceful settlement, reflecting Azerbaijan’s diplomatic maturity and the strategic leadership of President Ilham Aliyev.
Azerbaijan’s economic breakthrough: from investment to leadership in energy and transport
Azerbaijan’s international success is backed not only by diplomatic achievements but also by strong economic performance. Recent decisions by major credit rating agencies have sent a clear signal of the country’s economic resilience.
Moody’s upgraded Azerbaijan’s sovereign credit rating from Ba1 to investment grade Baa3, highlighting the country’s progress in transforming itself into a transport and energy hub that supports growth in non-oil sectors such as logistics, construction, and tourism. A major factor in this transformation is the development of the liberated territories of Karabakh and East Zangezur, which is accelerating economic diversification and demonstrating how peace and stability directly enhance Azerbaijan’s investment appeal.
Fitch Ratings has also affirmed Azerbaijan’s long-term issuer default rating at “BBB–” with a stable outlook, noting reduced currency risks. Meanwhile, unemployment has fallen to a historic low of 5%, a clear reflection of effective economic management and job creation.
The energy sector remains the flagship of Azerbaijan’s economy. The country now exports natural gas to 14 nations, maintaining a leading global position in pipeline gas supplies. At the same time, Azerbaijan is expanding its renewable energy sector, aiming to generate around 40% of its total electricity from renewables by 2030. This approach not only reduces environmental risks but also strengthens Azerbaijan’s position as an attractive partner for international investment in clean energy.
The country’s strategic location and advanced transport infrastructure further enhance its economic potential. Azerbaijan has become a key transit hub linking East and West, North and South. Freight volumes along the Middle Corridor have surged by almost 90% since 2022, while the Caspian’s largest merchant fleet - with an annual capacity of up to 25 million tons - together with nine international airports and the Baku–Tbilisi–Kars railway, ensures uninterrupted logistics flows. These assets make Azerbaijan an indispensable link in global trade and transport networks, creating new opportunities for business and investors.
Azerbaijan’s economic momentum is therefore more than just a set of numbers - it reflects the reintegration of peaceful territories, the strengthening of energy independence, and the creation of a world-class logistics hub. The country has become a model of post-Soviet success and an increasingly attractive platform for international cooperation.
Azerbaijan is also deepening cooperation with CIS countries in Central Asia, evolving into a key economic and transport center for the wider region. This direction is part of a long-term strategy that views these countries not only as strategic partners but also as an essential link in building a shared space of stability, energy cooperation, and transport integration - stretching from the Caspian to Europe.
For Baku, this region is not just about markets or transit corridors. It is a space of shared history, cultural ties, and common challenges - a foundation for lasting economic partnership. Under the personal leadership of President Ilham Aliyev, joint initiatives have moved from declarations to concrete projects with tangible economic results.
Partnership with Uzbekistan is growing particularly rapidly. It now covers industry, the digital economy, green energy, and education. Joint industrial ventures, transport and logistics projects along the Middle Corridor, dual-degree programs, and research cooperation provide a solid foundation for deeper integration. The results are already visible: the number of Azerbaijani companies operating in Uzbekistan rose from 178 in 2019 to 278 by April 2025, while trade continues to expand in sectors such as agribusiness, textiles, petrochemicals, and engineering.
Cooperation with Turkmenistan is also developing swiftly, driven primarily by the energy sector. In parallel, projects in transport, logistics, and cultural exchange are reinforcing bilateral ties and making them more sustainable.
Regional meetings - such as the trilateral summit in Turkmenbashi on August 22, 2025 - have reaffirmed the strategic importance of transport, energy, and humanitarian initiatives. Memoranda on international air services, transport and logistics cooperation, and cultural exchange were signed, reflecting Azerbaijan’s comprehensive approach to regional integration.
Under the leadership of President Ilham Aliyev, Azerbaijan is not only strengthening and diversifying its own economy but is also shaping a new economic reality across the CIS. The country is emerging as a key energy and transit hub for Eurasia, opening fresh opportunities for investment, trade, and sustainable growth across the region.
Azerbaijan’s story is a vivid example of how a nation that has endured war, occupation, and major challenges can become a driver of economic growth, an energy leader, a transport hub, and a reliable regional partner. The strategic leadership of President Ilham Aliyev has turned the country’s geopolitical position into a powerful tool for influence and sustainable development.
Today, Azerbaijan is not just a successful state but a model for the CIS - with a strong economy, resilient sovereignty, a clear foreign policy vision, and a growing role in the global system.