UAE and Azerbaijan to Strengthen Economic Partnership Across Multiple Sectors

Technology

UAE and Azerbaijan to Strengthen Economic Partnership Across Multiple Sectors

The UAE and Azerbaijan have committed to enhancing their economic partnership across various sectors, including entrepreneurship, tourism, new economy, technology, innovation, and agriculture. This agreement was reached during the ninth session of the UAE-Azerbaijan Joint Intergovernmental Commission (JIC) for Economic, Trade, and Technical Cooperation held in Shusha, Azerbaijan. The meeting was co-chaired by H.E. Abdulla bin Touq Al Marri, UAE Minister of Economy, and H.E. Mikayil Jabbarov, Azerbaijan's Minister of Economy, and attended by senior officials and representatives from both nations.

H.E. Bin Touq emphasized the long-standing strategic relations between the UAE and Azerbaijan, which have evolved over three decades through frequent high-level exchanges. The recent visit of H.H. Sheikh Mohammed bin Zayed Al Nahyan, President of the UAE, to Azerbaijan in January underscored this relationship, resulting in several Memorandums of Understanding (MoUs) in areas of mutual interest.

“The latest JIC session marks a significant milestone in strengthening the economic ties between our countries. We discussed various vital sectors that have the potential to drive sustainable development for both economies. We are eager to collaborate closely with our Azerbaijani partners to explore new avenues and create diverse opportunities,” H.E. Bin Touq stated.

The UAE's business environment, including recent amendments to the Commercial Companies Law allowing 100% foreign ownership, has attracted significant attention. H.E. Bin Touq highlighted that more than 275,000 new companies were registered in the UAE within a year and a half, bringing the total to over 788,000 by the end of 2023. Additionally, revamped visa and residency systems have enhanced the UAE’s appeal to global talents, competencies, and entrepreneurs.

Azerbaijani private sector representatives were encouraged to capitalize on the UAE's flexible and competitive business policies. Recent legislative updates, such as laws on family businesses, commercial agencies, cooperatives, and modern trade technologies, have fostered a supportive business climate. The UAE's commitment to sustainable economic growth was also emphasized, particularly through the ‘UAE Circular Economy Agenda 2031,’ which aims to enhance sustainability over the next decade.

Both parties agreed to establish joint work teams to explore further economic collaboration opportunities. These teams will support exporters and importers, enhance the exchange of goods and services, and diversify trade. Given the UAE's role as a vital trade gateway, facilitating Azerbaijani exports to regional markets was also discussed.

Key areas of cooperation include:

Entrepreneurship and SMEs: Implementing programs to boost startup growth, enhancing investment opportunities, and enabling market access.

Tourism: Organizing joint exhibitions, events, and conferences to highlight key attractions and diverse tourism offerings, leveraging the 185 monthly flights connecting the two countries.

Digitalization and Innovation: Strengthening collaboration in digitalization, innovation, and technology, and promoting cooperative efforts between government entities focused on AI and innovative solutions.

Agriculture and Food Security: Enhancing trade in food products and agricultural goods, and reviewing the latest agricultural trends.

Energy and Renewable Energy: Fostering cooperation in energy sectors, exploring new projects, and organizing workshops on energy efficiency.

The UAE is Azerbaijan's top Arab trading partner, accounting for 40% of its regional trade. In 2023, non-oil trade between the two countries surpassed USD 1.64 billion (AED 6 billion), a 68% increase from 2022. Preliminary figures for January to April 2024 indicate a 62% growth in non-oil trade, reaching USD 617 million (AED 2.3 billion). The UAE’s investments in Azerbaijan are estimated at USD 1.1 billion, making it the largest Arab and seventh largest global investor in Azerbaijan. Azerbaijani investments in the UAE amounted to over USD 210 million as of the end of 2021.