ABU DHABI, UAE, July 9. In recent years, relations between Azerbaijan and the United Arab Emirates (UAE) have shown steady progress, expanding across a wide range of sectors—from energy and investment to humanitarian cooperation. One of the most visible areas of deepening partnership is in the context of the global climate agenda, as both countries, along with Brazil, are part of the COP Troika (COP28, COP29, and COP30).
Energy and renewables: a strategic priority
Energy remains a cornerstone of bilateral cooperation. Since summer 2023, the UAE’s national oil and gas company ADNOC has held a 30% stake in Azerbaijan’s Absheron gas-condensate project. In May 2024, SOCAR acquired a 3% share from ADNOC in the SARB (Satah al Razboot) and Umm Lulu oil field development project in the UAE. This marked the first time SOCAR joined an upstream project abroad. The reserves of the SARB and Umm Lulu contract area exceed 1.5 billion barrels.
Renewable energy development is also a key pillar of cooperation. In January 2024, SOCAR and Masdar signed an agreement to jointly develop renewable and hydrogen energy projects with a combined capacity of 4 GW. As part of this effort, investments began in the construction of solar power plants with capacities of 445 MW in Bilasuvar and 315 MW in Neftchala. Total investment in these projects will exceed $600 million.
Speaking at Caspian Oil and Gas 2025 in Baku, Murad Sadykhov, Head of Masdar’s office in Azerbaijan, noted that Masdar’s total project portfolio in Azerbaijan will surpass 1.2 GW by 2027. Active in the country since 2018, Masdar launched its first project with the 230 MW Garadagh solar plant. It is currently working with SOCAR Green on two more projects, including the 240 MW Absheron-Garadagh wind farm.
Political dialogue and the climate agenda
On July 3, 2025, UAE Minister of Industry and Advanced Technology and COP28 President Sultan Ahmed Al Jaber visited Azerbaijan to attend the 17th Economic Cooperation Organization (ECO) Summit. The visit underscored the two countries’ shared approach to economic and climate-related issues.
Earlier, in January 2024, President Ilham Aliyev of Azerbaijan participated in the opening ceremony of Abu Dhabi Sustainability Week, further highlighting the strong political dialogue and mutual support for key climate initiatives.
Economic and investment cooperation
The UAE ranks among the top five foreign investors in Azerbaijan’s economy. In 2024, investments from the UAE totaled $490.2 million, placing it fifth among Azerbaijan’s main investor countries with a 7% share of total FDI.
Trade between the two countries reached $33.2 million in the first quarter of 2025, a 45.6% increase compared to the same period in 2024. Non-oil exports from Azerbaijan to the UAE grew by 40.2%, amounting to $19 million. The UAE is now the seventh-largest destination for Azerbaijan’s non-oil exports.
According to the Central Bank of Azerbaijan, personal remittances from Azerbaijan to the UAE reached $18.8 million in Q1 2025, up 52.1% from the same period in 2024.
Cooperation is also expanding in financial markets. During a visit to the Abu Dhabi Securities Exchange, Chairman of the Central Bank of Azerbaijan Taleh Kazimov discussed opportunities for cooperation, including joint efforts to develop capital markets. A presentation of the exchange’s operations laid the groundwork for potential financial system integration.
Humanitarian aid and demining
Humanitarian cooperation remains an important area of engagement. In 2024, the UAE expressed readiness through its embassy in Baku to financially support Azerbaijan’s Mine Action Agency (ANAMA) in clearing liberated territories. A memorandum of understanding was signed by ANAMA Chairman Vugar Suleymanov and UAE Ambassador Mohammed Al Bloushi. The support will enhance ANAMA’s technical capacity, enable the purchase of specialized equipment, and fund mine risk education efforts.
Azerbaijan–UAE relations are advancing along a comprehensive and upward trajectory. While energy and renewables form the foundation, growing attention is being given to trade, investment, finance, and humanitarian cooperation. Both nations place strong emphasis on the global climate agenda and are positioning themselves as key players in sustainable development. Given the scale of ongoing projects and agreements, the strategic partnership between Azerbaijan and the UAE is poised to deepen further—serving national priorities and contributing to broader global goals.