As peace negotiations between Azerbaijan and Armenia show renewed momentum, analysts suggest the potential economic dividends for the South Caucasus could be transformative. The prospect of long-term peace is no longer just a diplomatic objective -- it is increasingly seen as a critical economic catalyst for both countries and the wider region.

The most recent high-level meetings between Azerbaijani and Armenian officials signal that the two countries may be inching closer to a comprehensive peace agreement. Analysts argue that the normalization of relations could mark the beginning of a new era, one characterized by economic integration, infrastructure development, and regional connectivity.

According to ING Bank, the potential peace agreement could significantly improve the investment climate in the region. “Further investor interest could be unlocked if the ongoing normalization of relations with Armenia continues,” ING noted in a recent article, emphasizing that peace could open new investment channels, particularly for Azerbaijan.

This view is echoed by Azerbaijani economist and Member of Parliament Vugar........

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