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Nazrin Abdul

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The global economy is no longer merely about generating wealth, it is mainly about diversifying revenue sources, particularly for nations historically reliant on natural resources. States that successfully implement such diversification strategies tend to achieve more stable and resilient growth. Azerbaijan exemplifies this approach. Long celebrated as an oil and gas hub, the country experienced significant economic revival during the oil boom. Today, it is actively pursuing diversification, with agriculture and food security emerging as critical pillars of its economic transformation.

Interestingly, while Azerbaijan derives 85-90% of its national income from oil, the workforce composition tells a different story. Only 31.6 thousand people are employed in the oil and gas sector, whereas approximately 1.73 million work in non-oil sectors. Agriculture alone accounts for 36% of the employed population, yet contributes a mere 6% to GDP - a striking indicator of underutilized potential. This imbalance underscores the necessity of structural reforms and technological modernization in the sector.

Recent developments signal a promising shift. Azerbaijan has actively engaged the United Arab Emirates (UAE) in discussions to strengthen agricultural cooperation. Bilateral non-oil trade between the two nations surged by 43% last year, reaching $2.4 billion, reflecting deepening economic ties beyond hydrocarbons.

Amna bin Abdullah Al Dahak Alshamsi, UAE Minister of Climate Change and Environment, emphasized the strategic nature of these collaborations in a recent interview. Highlighting the UAE’s National Food Security Strategy 2051, she explained that the UAE leverages advanced technologies, high-tech solutions, and artificial intelligence to overcome the challenges of its arid environment. “Although the UAE is located in a difficult, arid geography, we are transforming our agricultural reality through the most modern technologies,” she noted, emphasizing the potential for joint innovation with Azerbaijan.

UAE’s food security model offers blueprint for economic diversification

The UAE’s success in developing agriculture despite harsh climatic conditions offers a blueprint for Azerbaijan. While agriculture represents only 0.7% of the UAE’s GDP, the sector thrives through cutting-edge technological interventions. Azerbaijan, endowed with fertile lands and favorable climate, could significantly amplify agricultural productivity by integrating the UAE’s advanced agricultural technologies, precision farming, and smart supply chain management.

Minister Alshamsi outlined a vision for structured cooperation: a roadmap with clear milestones to translate dialogue into practical outcomes. This structured approach ensures that both governments and private sectors can track progress, foster intergovernmental and business-to-business partnerships, and convert strategic discussions into tangible projects.

The potential impact of combining Azerbaijan’s natural advantages with the UAE’s technological expertise cannot be overstated. Over the past two years, more than 20 bilateral agreements have been signed, demonstrating a sustained commitment to cooperation across sectors. Agriculture is now poised to become a central focus, promising mutual benefits in food security, sustainable production, and export capacity.

Beyond economic gains, this partnership represents a broader strategic alignment. By sharing knowledge, technology, and investment, Azerbaijan and the UAE aim to enhance regional food security, create long-term economic resilience, and foster sustainable growth for both nations.

The convergence of Azerbaijan’s agricultural potential and the UAE’s technological innovation signals a transformative chapter in bilateral relations. With strong governmental support, private sector engagement, and a clear strategic roadmap, the agricultural partnership could become a benchmark for international cooperation, replicating the success both countries have already achieved in the energy sector.