Azernews.Az

By Ulviya Poladova | AzerNEWS

Saudi Arabia’s 2030 vision lays out a blueprint for the kingdom's long-term goals and expectations reflecting its strengths and capabilities. Some of the principles target the kingdom becoming a "global investment powerhouse" and aim to transform the country's unique strategic location into a global hub connecting three continents, Asia, Europe and Africa.

A key objective of Vision 2030 is to reduce the Kingdom's reliance on oil revenues, particularly in light of fluctuating oil prices. The plan aims to attract private capital and foreign investment to stimulate growth in non-oil sectors. With a focus on diversifying its economy away from oil dependence, Vision 2030 encompasses a wide array of projects and investments that promise to redefine the future of Saudi Arabia.

The program also includes plans to privatize state-owned enterprises, including parts of the oil sector, which can attract foreign investment and expertise. Initiatives to streamline regulations and improve the business environment are being implemented to encourage entrepreneurship and innovation.

Azerbaijan's evolving economic and strategic ties with Saudi Arabia represent another edge of Vision 2030's broader ambitions. The deepening relationship reflects Azerbaijan's pivot toward diversified partnerships beyond its traditional markets. According to the Central Bank of Azerbaijan, direct investments in Saudi Arabia surged to $15.789 million in 2025, a remarkable increase that underscores the growing engagement between the two countries.

Despite this sharp rise, Azerbaijan’s investments in Saudi Arabia still account for only 0.6% of its total outward foreign direct investment (FDI), indicating significant potential for further expansion. At the macro level, while foreign direct investment into Azerbaijan's economy saw a decline, its outward FDI rose substantially by 43.4%, signaling a shift towards a more outward-looking investment strategy.

Economist Fuad Gasimov noted that investment relations between Azerbaijan and Saudi Arabia are becoming increasingly strategic, especially within the framework of Saudi Vision 2030, which aims to diversify the Kingdom’s economy beyond oil. In his comment for AzerNEWS, Azerbaijan's recent progress in key areas that bring the country in focus. F Gasimov says that Azerbaijan is emerging as an important partner due to its strategic geographic position at the crossroads of key transport corridors linking Europe, Central Asia, and the Middle East, as well as its ongoing economic transformation focused on non-oil sectors, infrastructure, digitalization, and green energy. He emphasized that the interests of both countries are well aligned: Saudi Arabia is seeking new avenues for global capital expansion, while Azerbaijan is looking for long-term strategic investors. According to him, this cooperation is already evolving beyond traditional diplomacy into deeper institutional partnerships involving sovereign wealth funds, government bodies, and private-sector players.

Moreover, Gasimov highlighted that Azerbaijan offers several highly attractive opportunities for Saudi investors, particularly in construction and infrastructure. He pointed to tourism infrastructure as a key area, noting the country’s active development of coastal, mountainous, and newly liberated regions, which could benefit from Saudi Arabia’s extensive experience in large-scale hospitality and resort projects. Expert also stressed the importance of residential construction and smart city development, especially in Karabakh and Eastern Zangezur, where entirely new, technologically advanced urban environments are being built. In addition, he identified industrial and logistics real estate as a direction, driven by Azerbaijan’s growing role in the Middle Corridor and increasing demand for modern logistics hubs and industrial parks. Expanding business activity is also fueling demand for commercial real estate, including offices, shopping centers, and business parks. Overall, he described the partnership as mutually beneficial, enabling Saudi Arabia to diversify its investments and strengthen its presence in Eurasia, while providing Azerbaijan with capital inflows, job creation, technology transfer, and improved infrastructure standards.

Looking ahead, Gasimov underscored that innovation could become a central pillar of bilateral cooperation in the coming decade. He explained that both countries are shifting toward knowledge-based, technology-driven economies, creating strong potential for collaboration in areas such as tourism, fintech, artificial intelligence, cybersecurity, and smart city solutions. He particularly emphasized tourism as a promising sector, where Saudi expertise in smart tourism technologies, such as AI-driven personalization, digital platforms, and automated hospitality systems, could accelerate Azerbaijan’s development in this field. Beyond that, he suggested practical mechanisms for cooperation, including the creation of joint innovation funds, startup accelerators, technology incubators, and research and development centers, combining Saudi financial resources with Azerbaijan’s growing technological ecosystem and strategic regional position.