BAKU, Azerbaijan, December 25. In recent years, the United Arab Emirates (UAE) has actively shaped the direction of its foreign policy through a series of strategic initiatives. This is reflected in the diversification of its trade and diplomatic relations, coupled with an increased focus on expanding its influence within neighboring regions. Furthermore, the UAE has significantly ramped up investment across a variety of sectors, particularly in traditional and renewable energy, digitalization, data center development, and logistics. Notably, the global logistics landscape would be incomplete without the presence of a key UAE player, DP World. As an international logistics giant operating in over 40 countries, DP World facilitates 10% of global container transportation, underscoring the UAE's pivotal role in the sector.
Central Asia has emerged as a key region in the UAE's efforts to expand its economic influence. Although Central Asia’s share in the foreign trade of Gulf Cooperation Council (GCC) countries remains relatively modest, it is largely shaped by the UAE's growing economic engagement, underscored by bilateral agreements with several regional nations. According to the IMF’s December 6 report, "Gulf Cooperation Council (GCC) - Enhancing Resilience to Global Shocks: Economic Prospects and Policy Challenges for the GCC Countries," the report highlights that improvements in logistics, governance, and the simplification of trade procedures hold considerable potential for further boosting interregional trade.
In this context, recent remarks by the UAE Ambassador to Turkmenistan, Ahmed Alhai Hamad Khamis Alhameli, regarding the country’s aim to double trade with Turkmenistan in the coming years, align closely with expectations from regional stakeholders. His statement, issued against the backdrop of a marked acceleration in economic ties between Ashgabat and Abu Dhabi, signifies a broader shift in the nature of their bilateral cooperation.
By the end of 2024, non-oil trade between the UAE and Turkmenistan reached approximately $1.76 billion, a 75% increase compared to the previous year. These figures indicate that the process is already in an active phase rather than just declarative intentions. In 2025, the UAE became one of the top three largest trading partners of Turkmenistan, signaling a qualitative shift in Ashgabat’s trade geography.
A significant factor in this growth has been the increased presence of Emirati businesses in Turkmenistan’s energy sector. In 2024-2025, the UAE's state oil company, ADNOC, and its international investment division, XRG, entered the Turkmen market. Notably, XRG purchased a 38% stake in the large gas field "Block I" in Turkmenistan’s Caspian Sea sector, which holds 7 trillion cubic meters of gas, with daily production reaching 400 million cubic meters. These agreements are of a strategic nature and lay the foundation not only for increasing trade volumes but also for establishing a sustainable Emirati investment presence in Turkmenistan’s key economic sector.
In this context, the statement by President Serdar Berdimuhamedov at the International Forum on Attracting Foreign Investment in Turkmenistan’s Economy, held in the UAE in 2023, is noteworthy: “We place special emphasis on foreign investment. One of our key tasks is to develop licensed blocks of Turkmenistan’s Caspian section through foreign capital, based on the Production Sharing Agreement,” said the President.
At the same time, the official rhetoric from the Emirati side focuses particularly on non-oil trade. This approach aligns with the UAE’s strategy of diversifying its foreign economic relations and reducing dependence on the hydrocarbon sector. For Turkmenistan, this focus is also important: Ashgabat consistently declares its intention to expand the range of its exported goods and attract foreign investment into manufacturing, infrastructure, and related industries.
In addition to energy, cooperation in the transport and logistics sector is also developing significantly. The signing of a memorandum of understanding between Etihad Rail and the Turkmenistan Railways Agency "Turkmendemiryollary" under the Ministry of Communications of Turkmenistan reflects both parties' interest in forming transit routes connecting Central Asia to the port infrastructure of the Persian Gulf. In the context of the restructuring of global supply chains, such projects have the potential to influence the structure of bilateral trade and increase the share of higher-value-added products.
At the same time, the institutional foundation for cooperation is being strengthened. ADNOC has opened an office in Ashgabat, contacts between chambers of commerce have intensified, and business forums and meetings are being regularly held. This reflects a transition from political agreements to a more practical form of cooperation focused on specific commercial projects and investment decisions.
For the UAE, its cooperation with Turkmenistan aligns with a broader strategy of expanding its economic influence in Central Asia, a region rich in energy resources and strategically positioned as a vital transit hub between East and West. For Ashgabat, collaboration with Abu Dhabi offers valuable access to capital, advanced technologies, and managerial expertise, while also providing a gateway to the Middle Eastern markets.
In this context, Ambassador Alhameli's statement underscores an ongoing trend: trade and economic cooperation are increasingly central to the bilateral relationship. Current initiatives in energy, infrastructure, and logistics are poised to play a critical role in realizing the objective of doubling trade turnover, thereby reinforcing the development of a systematic and enduring economic partnership between the UAE and Turkmenistan.