In 2024, Azerbaijan’s foreign direct investment (FDI) landscape experienced notable shifts, reflecting the country’s strategic position as a regional economic hub. The total volume of FDI in Azerbaijan increased to 7.046 billion US dollars, representing a 5.83% rise from the previous year. However, a closer examination of these inflows and outflows reveals intricate patterns of economic activity, particularly in relation to Azerbaijan’s investments in other countries and the inflow of foreign capital from key partners.

UAE's growing investment in Azerbaijan

The United Arab Emirates (UAE) played a significant role in Azerbaijan’s economic development, with FDI from the UAE rising by 53.7% to 490.1 million US dollars in 2024. This marked a substantial 171.2 million US dollar increase from 2023, underscoring the UAE’s growing confidence in Azerbaijan’s economic potential. The UAE’s share of total FDI in Azerbaijan reached 7%, signaling its prominent position in the country’s investment framework.
Such a sharp increase in UAE investments could be indicative of the UAE’s long-term strategy to strengthen ties with Azerbaijan, particularly in sectors such as energy, infrastructure, and tourism. The UAE’s expertise in these areas, coupled with Azerbaijan’s favorable investment climate, creates a synergistic environment for mutual growth. Moreover, the diversification of........

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