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Nazrin Abdul

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Azerbaijan’s deepening economic and strategic ties with the Gulf countries mark a significant evolution in the South Caucasus nation’s foreign policy and energy diplomacy. As the world undergoes an energy transition and as regional dynamics shift in the Middle East, Azerbaijan is positioning itself not only as a traditional energy exporter but also as a rising actor in green energy and regional mediation. This transformation is driven by both necessity and opportunity - and increasingly involves key players from the Gulf such as the United Arab Emirates (UAE) and Saudi Arabia.

Energy diplomacy in the Middle East: From gas exports to green partnerships

For decades, Azerbaijan's economic identity was anchored in fossil fuel exports. Today, however, the country is leveraging its strategic geography and energy infrastructure to diversify both its export markets and its energy mix. Traditionally focused on supplying natural gas to Europe, Baku is now exploring the Middle East as a viable new market—a significant shift in its energy diplomacy.

In a landmark move, Azerbaijan has begun supplying natural gas to Syria through a quadrilateral cooperation involving Türkiye and Qatar. This humanitarian and economic initiative not only addresses Syria’s energy shortages but also demonstrates Azerbaijan’s capacity to operate as a regional energy facilitator, even amid complex geopolitics. President Ilham Aliyev has publicly confirmed that 1.2 billion cubic meters of gas have already been earmarked for Syria, with plans for further expansion.

Critically, Baku is also exploring ways to utilize the Arab Gas Pipeline and other swap or transit mechanisms to extend its energy outreach deeper into the Middle East. As President Aliyev noted, this marks Azerbaijan's first meaningful energy engagement in the Arab world, representing a new frontier in its export strategy.

Green energy as a cornerstone of Azerbaijan-Gulf countries' relations

While hydrocarbons remain important, renewable energy has become the defining theme of Azerbaijan’s partnership with Gulf nations. This cooperation aligns closely with Azerbaijan’s national objective of generating 6 gigawatts of solar and wind energy by 2030, a goal that would have been unthinkable just a decade ago.

Two Gulf giants - Masdar of the UAE and ACWA Power of Saudi Arabia—have emerged as flagship partners in Azerbaijan’s green transformation.

Key projects:

Garadagh Solar Power Plant: Built in partnership with Masdar, it marks Azerbaijan’s first foreign-invested solar plant, now fully operational.
Nefthchala, Bilasuvar, and Absheron-Garadagh Plants: Foundations laid during the 2024 Baku Energy Week, totaling 1 GW of capacity, further cement UAE’s role in Azerbaijan’s renewable sector.
Khizi-Absheron Wind Power Plant: Developed by ACWA Power, this 240 MW facility will be the largest wind energy project in Azerbaijan, expected to be completed in 2025, generating 1 billion kWh annually and saving 220 million cubic meters of natural gas.

These investments are not just about energy - they reflect strategic trust and long-term alignment between Azerbaijan and Gulf nations on sustainability, economic diversification, and mutual prosperity. They also signal Baku’s growing attractiveness as a regional green energy hub - supported by infrastructure, investor-friendly policies, and political stability.

Cross-investments: A two-way street

The relationship is not one-sided. In a milestone development, the UAE's ADNOC acquired a stake in one of Azerbaijan's largest Caspian Sea gas fields, while SOCAR, Azerbaijan’s national oil company, gained a stake in a UAE oil development project. This reciprocal investment model reflects deep mutual confidence and signals a new phase of economic interdependence.

Moreover, one of Saudi Arabia's leading engineering companies has been selected to construct a water desalination plant on the Caspian coast, further expanding cooperation beyond energy into water security and agriculture - key priorities for both nations.

Azerbaijan’s soft power: Religious harmony and regional mediation

Beyond economics, Azerbaijan is also carving out a role as a platform for intercultural and interreligious dialogue -- a theme that resonates strongly with the Gulf.

President Ilham Aliyev, in a recent interview with Saudi Arabia’s Al Arabiya, emphasized Azerbaijan’s unique religious model, where Shia and Sunni Muslims pray together and religious minorities live in harmony. He stressed that sectarian division is the greatest threat to the Muslim world, and Azerbaijan’s own societal model proves that unity is achievable without foreign interference.

This positioning gives Azerbaijan moral capital in the region. Baku’s hosting of biennial International Conferences on Intercultural Dialogue has attracted religious and political leaders from across the Islamic world, serving as a platform for countering sectarianism and extremism.

Azerbaijan’s involvement in facilitating gas supplies to Syria and its quiet role in talks between Syria and Israel show that its diplomacy is evolving. It no longer sees itself solely as an exporter or economic player, but increasingly as a regional peace broker -- one with credibility in both the West and the Islamic world.

President Aliyev's comments reflect a pragmatic foreign policy rooted in territorial integrity, anti-separatism, and regional cooperation -- principles that resonate with many in the Arab world, especially amid the fragmentation of state authority in parts of the Middle East.

Strategic outlook: Azerbaijan and the Gulf in a multipolar world

Azerbaijan's burgeoning ties with the Gulf are not isolated; they are part of a broader realignment of global economic and energy flows. With Europe’s shifting energy priorities, and the Gulf’s Vision 2030 diversification strategies, Azerbaijan is emerging as a bridge between regions -- commercially, logistically, and ideologically.

The relationship is mutually beneficial:
For the Gulf, Azerbaijan offers a stable, secular Muslim partner at the crossroads of Europe and Asia.
For Azerbaijan, Gulf capital and technological know-how are essential to its transition into a post-oil, clean-tech economy.

The future will likely see deepened cooperation in smart agriculture, water tech, tourism, logistics, and Islamic finance - further expanding the strategic scope of Azerbaijan-Gulf relations.

Azerbaijan’s expanding cooperation with the Gulf countries reflects a multi-dimensional foreign policy, rooted in pragmatism, diversification, and shared values. From gas diplomacy to green energy partnerships, and from cross-border investment to intercultural dialogue, Azerbaijan is redefining its global identity—not just as an energy supplier, but as a connector of economies, cultures, and ideologies in an increasingly interconnected world.

In a time of geopolitical fragmentation, Azerbaijan’s message to the Gulf and the broader Muslim world is clear: Unity, investment, and sustainability must shape the path forward.