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Wednesday December 17 2025

Azerbaijan, UAE deepen strategic alignment across energy to digital sport

17 December 2025 12:35 (UTC+04:00)
Azerbaijan, UAE deepen strategic alignment across energy to digital sport
Elnur Enveroglu
Elnur Enveroglu
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Once, imagining that relations between the South Caucasus and Arab countries would develop rapidly and become firmly established seemed like something out of One Thousand and One Nights. Today, however, this has become an observable reality. This is because the diplomatic pathways that opened up in the South Caucasus region, where Azerbaijan is located, were once limited to northern and neighbouring states. Since gaining independence, Azerbaijan has made it a guiding principle to expand the scope of its diplomatic relations further. It has aimed to develop the country’s political and economic independence not within a narrow framework alone, but across the Western, Central, Middle Eastern and Far Eastern dimensions.

Certainly, President Ilham Aliyev’s upcoming visit to the United Arab Emirates reflects the steady elevation of Azerbaijan-UAE relations from pragmatic cooperation to a broad-based strategic partnership. Over the past decade, ties between Baku and Abu Dhabi have expanded well beyond traditional diplomacy and energy cooperation. Today, the relationship encompasses green energy, tourism, investment, cyber technologies, education, humanitarian engagement and digital innovation. This multidimensional agenda provides the political and economic context for the Azerbaijani President’s visit to Abu Dhabi on 16 to 17 December, undertaken at the special invitation of UAE President Shaikh Muhammad bin Zayed Al Nahyan.

At the heart of this visit is President Ilham Aliyev’s participation in the opening ceremony of the Global Games of the Future 2025, a global sporting event that combines physical and digital competition. The tournament, hosted by the UAE after winning a competitive bid in 2024, reflects the country’s ambition to position itself as a global hub for innovation and future-oriented industries. For Azerbaijan, whose own development strategy increasingly prioritises digitalisation, cyber technologies and innovation-driven growth, participation at the highest political level signals both alignment with these priorities and an interest in shaping emerging global platforms.

The Games of the Future will take place from 18 to 23 December at the Abu Dhabi National Exhibition Centre, bringing together athletes from across the world to compete in eleven disciplines. Organised by Phygital International, an organisation headquartered in the UAE, the tournament merges traditional sport with digital skills, reflecting broader transformations in global culture and technology. With a total prize fund of five million US dollars, the event is also designed to attract international visibility and investment. President Ilham Aliyev’s attendance underscores Azerbaijan’s intention to be present where global innovation agendas are being set.

Beyond the symbolic importance of the event, the visit carries clear political significance. A bilateral meeting between President Ilham Aliyev and Shaikh Muhammad bin Zayed Al Nahyan is planned, continuing a pattern of intensive leader-level engagement that has become a defining feature of Azerbaijan-UAE relations. President Aliyev has visited the UAE six times, while the UAE President has made three high-level visits to Azerbaijan. These exchanges have played a decisive role in advancing cooperation across sectors and in establishing mutual trust at the highest level.

The political foundation of the relationship was significantly strengthened in recent years through landmark agreements. During Shaikh Muhammad bin Zayed Al Nahyan’s first official visit to Azerbaijan on 8 January 2024, the two sides signed a Memorandum of Understanding on Strategic Partnership. This was followed on 16 September 2025 by the Joint Declaration on Comprehensive Strategic Partnership Relations, signed during the UAE President’s subsequent visit to Azerbaijan. Together, these documents elevated bilateral relations to a qualitatively new level, committing both sides to deeper cooperation in politics, trade, energy, investment and other priority areas.

Economic cooperation has become one of the most dynamic pillars of the partnership. In January to October 2025, bilateral trade turnover reached 147.49 million US dollars, representing an increase of more than 80 per cent compared to the same period of the previous year. This sharp growth reflects both improved market access and expanding business contacts, facilitated in part by the Comprehensive Economic Partnership Agreement signed in Abu Dhabi on 9 July 2025. That agreement aims to increase trade volumes, diversify investment flows, promote innovation and green technologies, and strengthen ties between business communities.

Investment cooperation has also taken on an institutional character. In 2023, the Azerbaijan Investment Holding and the Abu Dhabi Development Holding Company established a Joint Investment Fund designed to support mutually beneficial projects. Several initiatives are currently being implemented through this mechanism, signalling long-term confidence in economic cooperation and shared development goals.

Energy remains a central strategic area, but its focus is increasingly forward-looking. UAE companies Masdar and ADNOC play an active role in Azerbaijan’s energy sector. Under the so-called Mega project with Masdar, large-scale renewable energy facilities are being developed, including solar power plants in Bilasuvar and Neftchala and a wind power plant in the Absheron Garadagh area. These projects, with a combined capacity of nearly one gigawatt, are expected to be commissioned between 2026 and 2027 and are central to Azerbaijan’s green transition strategy. ADNOC’s participation in the Absheron gas project further anchors energy cooperation on a strategic footing.

People-to-people ties reinforce these economic and political links. Direct flights between Baku and Abu Dhabi, Dubai and Sharjah have boosted tourism, with nearly 39 thousand UAE citizens visiting Azerbaijan this year. Transit transport volumes between the two countries have also increased by more than 20 per cent, strengthening Azerbaijan’s role as a regional connectivity hub.

Humanitarian and cultural cooperation adds depth to the relationship. The UAE’s contribution of five million US dollars to mine clearance efforts in Azerbaijan’s liberated territories has been widely appreciated, reflecting political solidarity and practical support. In education and culture, initiatives such as the opening of the Sheikh Zayed Arabic language auditorium at the Azerbaijan University of Languages and the organisation of Shusha Days in Abu Dhabi in November 2024 have strengthened mutual understanding.

President Aliyev’s visit, therefore, should be seen not as a single event, but as part of a broader strategic trajectory. By accepting a special invitation from the UAE leader and engaging in a platform that blends sport, technology and global visibility, Azerbaijan signals its intention to deepen partnerships that support its long-term political and economic objectives. The visit reflects a convergence of interests between two states seeking influence through innovation, connectivity and strategic foresight.

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