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Wednesday September 3 2025

Caucasus meets Gulf: Azerbaijan, Bahrain eye diversified cooperation

3 September 2025 17:39 (UTC+04:00)
Caucasus meets Gulf: Azerbaijan, Bahrain eye diversified cooperation

By Elnur Enveroglu and Qabil Ashirov | AzerNEWS

The relationship between Azerbaijan and Bahrain has steadily evolved since the establishment of diplomatic ties in 1996. Despite geographical distance, both nations share common values rooted in Islamic heritage, mutual respect, and a commitment to regional stability. Bahrain has consistently supported Azerbaijan’s territorial integrity, including during critical moments such as the Garabagh Conflict. This solidarity has laid a strong foundation for deeper cooperation.

In recent years, Azerbaijan has emerged as a strategic player in the Middle East. Its balanced foreign policy, energy diplomacy, and active participation in regional forums like the Manama Dialogue have elevated its profile. As a secular, Muslim-majority country with a pragmatic approach to international relations, Azerbaijan is increasingly seen as a bridge between East and West, and between the Gulf and the Caucasus.

The decision to open an Azerbaijani embassy in Manama marks a significant milestone. It signals Baku’s intent to deepen bilateral ties and engage more actively with the Gulf Cooperation Council (GCC) countries. A resident embassy will allow for more agile diplomacy, faster response to regional developments, and stronger representation of Azerbaijan’s interests in Bahrain and the wider Gulf.

One of the practical benefits of establishing an embassy is the improvement of consular services. Azerbaijani citizens living in or travelling to Bahrain will gain easier access to passport renewals, visa assistance, and legal support. In times of emergency, having a local diplomatic mission can be crucial for protecting citizens' rights and safety.

Bahrain, with its open economy and financial sector, offers fertile ground for Azerbaijani businesses and investors. The embassy can serve as a hub for promoting trade, facilitating business delegations, and identifying joint ventures in sectors such as energy, agriculture, tourism, and fintech. Azerbaijan’s growing non-oil economy aligns well with Bahrain’s diversification goals under its Economic Vision 2030.

Although trade between the two countries remains modest, the potential for growth is substantial. With the embassy in place, Azerbaijan can actively promote its exports—ranging from petrochemicals to agricultural products—and attract Bahraini investment into its industrial parks and free economic zones. Bilateral trade could see a significant uptick in the coming years.

Diplomatic presence also opens doors for cultural diplomacy. Azerbaijan can showcase its rich heritage through exhibitions, concerts, and academic partnerships. Student exchange programs and scholarships can strengthen people-to-people ties, fostering mutual understanding and long-term goodwill between the two nations.

Bahrain and Azerbaijan share concerns over regional security, extremism, and cyber threats. The embassy can facilitate closer coordination in defense and intelligence matters, building on existing agreements. Joint training programs and strategic dialogues can enhance both countries’ resilience in an increasingly complex geopolitical landscape.

Both nations are active members of international organisations such as the United Nations, the Organisation of Islamic Cooperation (OIC), and the Non-Aligned Movement. A stronger bilateral relationship can translate into more coordinated positions on global issues, from climate change to humanitarian aid, amplifying Azerbaijan’s voice on the world stage.

Ultimately, the opening of the Azerbaijani embassy in Bahrain is more than a diplomatic formality; it is a symbol of Azerbaijan’s vision for deeper integration into the Middle East. It reflects a commitment to long-term partnership, economic prosperity, and regional peace. As Azerbaijan continues to rise as a regional power, its presence in Bahrain will be a testament to its strategic foresight and diplomatic maturity.

Azerbaijan's vision for cooperation with Gulf states

Azerbaijan, already recognised as the safest and most cost-effective transit and transport hub in the South Caucasus, has always prioritised an independent policy and diplomacy. Baku, which has realised its role as a bridge between East and West through many large-scale projects, does not want to confine itself to the region. This is because limiting Azerbaijan’s opportunities only to the Russia, US, and China blocs would be too restrictive. The existing possibilities and conditions open new horizons for Azerbaijan to turn the South Caucasus into a more competitive space.

The Middle East, when viewed from a certain angle, shares a similar fate with the South Caucasus; both regions have historically been centres of intense conflict. Yet today, Azerbaijan is expanding a major path to peace by fostering interregional connections. Moreover, both the South Caucasus and Gulf states are striving to establish new ties in pursuit of economic diversification.

Naturally, one might ask: Why would Gulf countries need Azerbaijani gas?

Azerbaijan's interest in supplying gas to Gulf countries reflects its strategic goal to diversify its export markets, strengthen regional energy ties, and elevate its role as a key player in international energy diplomacy. Historically reliant on European markets, Azerbaijan is now seeking to expand its reach into the Gulf region, which is rapidly developing its energy infrastructure and geopolitical influence.

The Gulf countries, especially nations like Saudi Arabia, the United Arab Emirates, and Qatar, are increasingly looking to diversify their energy sources and enhance cooperation with non-Western gas suppliers amid shifting global energy dynamics. Azerbaijan, with its substantial natural gas reserves and emerging infrastructure, including the Southern Gas Corridor and plans for new pipeline projects, is well-positioned to meet this demand. Its proximity to Gulf nations offers a strategic advantage for establishing overland and subsea pipeline routes, potentially via infrastructure developments connecting Caspian and Arabian Peninsula pipelines.

Mutually, the prospects for Azerbaijan and Gulf countries are promising but complex. For Gulf nations, engaging with Azerbaijan offers access to a stable, reliable supplier outside traditional Western-controlled markets and an opportunity to diversify energy partnerships amid geopolitical tensions and market uncertainties. For Azerbaijan, expanding into Gulf markets enhances its energy diplomacy, increases revenue sources, and balances its relationships with Western and regional partners such as Turkiye, Russia, and Iran.

However, there are challenges to overcome, including geopolitical sensitivities, regional rivalries, and logistical complexities of pipeline construction. Diplomatic negotiations will be essential to secure agreements that align with the strategic interests of all parties. Moreover, the growing emphasis on renewable energy and global climate policies requires Azerbaijan to balance its hydrocarbon ambitions with sustainability goals.

Overall, Azerbaijan's pursuit of gas exports to Gulf countries holds substantial potential for deepening regional cooperation, boosting economic gains, and reinforcing Azerbaijan’s strategic position as an energy hub connecting Eurasia with the Middle East. Both sides stand to benefit from this expanding partnership, provided they navigate geopolitical risks and infrastructural hurdles effectively.

As regards the Azerbaijan–Bahrain economic relations, the future of it lies in complementary diversification strategies. Both countries are actively working to move beyond oil dependence. Literally, Azerbaijan, through its non-oil industrial expansion and strategic transit role in the South Caucasus, and Bahrain, through its Vision 2030 programme, which emphasises innovation, finance, logistics, and tourism.

Moreover, Bahrain, with its small but growing gas needs, could benefit from Azerbaijan’s experience in natural gas exploration, pipeline management, and renewable transition projects. Bahrain’s investments in LNG terminals make it a potential client and partner for Azerbaijani gas and expertise.

Looking at the country from a finance and investment perspective, Bahrain is one of the Gulf’s financial hubs. Its Islamic finance sector can serve as a channel for Gulf capital into Azerbaijani infrastructure, renewables, tourism, and technology projects. Conversely, the Azerbaijani sovereign wealth fund (SOFAZ) could explore financial vehicles in Bahrain.

We should not limit our focus to these areas alone, as broader opportunities exist in logistics and connectivity. Azerbaijan’s role as a transport hub between Asia and Europe naturally complements Bahrain’s ambition to become a Gulf logistics centre. Enhanced cooperation in ports, free economic zones, and customs digitalisation could establish new trade corridors linking the South Caucasus with the Gulf.

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