Azernews.Az

Qabil Ashirov

Read more

Azerbaijan and Uzbekistan are increasingly demonstrating what a modern regional economic partnership can look like: not simply the exchange of goods, but the movement of capital, technology, energy and infrastructure across borders. The growing relationship between Baku and Tashkent is particularly notable because the economic strengths of the two countries are complementary. Azerbaijan offers a gateway across the Caspian Sea toward the South Caucasus and European markets, while Uzbekistan brings the scale, industrial capacity and market potential of Central Asia. President Ilham Aliyev recently highlighted this complementarity precisely in an interview with Uzbekistan’s National Information Agency (UzA), saying that the economic opportunities of the two countries open broad horizons for new forms of cooperation.

The economic relationship between Baku and Tashkent increasingly supports that assessment. The two countries are no longer simply expanding trade in goods. Their cooperation is gradually developing into a broader economic partnership involving investment, industrial production, energy, renewable power, transportation and tourism.

The most visible sign of this momentum is the growth in bilateral trade. Trade turnover between Azerbaijan and Uzbekistan increased more than threefold in 2025, reaching $795 million. In January-May 2026, it rose by another 33 percent year on year to $144 million. While these figures remain modest compared with the trade volumes of much larger economies, their growth rate demonstrates how quickly economic ties are expanding.

More importantly, the relationship is increasingly moving from trade toward investment. The Azerbaijan-Uzbekistan Investment Company, established with total capital of $500 million, provides a platform for financing projects in both countries. Such an institution can have a greater long-term impact than rising trade alone because it creates opportunities for companies from the two countries to participate in projects together and build permanent economic links.

Industrial cooperation is already providing examples of this approach. Azerbaijan and Uzbekistan are cooperating in the production of Chevrolet vehicles and Isuzu buses. By July 13, 2026, 10,720 Chevrolet vehicles and 275 Isuzu buses had been produced. These projects demonstrate the potential for cooperation to extend beyond importing and exporting finished products toward manufacturing, supply chains, technology and local production.

Energy is another major component of the relationship. Azerbaijani and Uzbek companies have been cooperating in the oil and gas sector for years, while the creation of Turan Energy AFEZCO has added another dimension to this partnership. The joint venture between SOCAR and Uzbekneftegaz exports high-pressure polyethylene produced by Azerikimya to Uzbekistan, linking the two economies through petrochemicals as well as traditional energy cooperation.

At the same time, the partnership is beginning to look toward the energy systems of the future. In 2025, Azerbaijan, Kazakhstan and Uzbekistan established the Green Energy Corridor Alliance in Baku to coordinate the development of a regional green energy corridor, renewable energy exports and the potential transmission of electricity under the Caspian Sea. If these plans advance, Azerbaijan could become an important bridge between Central Asia’s renewable energy resources and markets farther west.

Transport is equally important. Transit shipments between Azerbaijan and Uzbekistan increased by 6.7 percent in 2025 to 1.4 million tons, while the first six months of 2026 recorded a further 12.2 percent increase. These figures highlight the complementary geographical positions of the two countries. Uzbekistan is located at the heart of Central Asia, while Azerbaijan connects the region with the South Caucasus, the Caspian Sea and routes leading toward Türkiye and Europe.

This is where the broader importance of the Middle Corridor becomes clear. Greater connectivity between Central Asian producers and western markets can create opportunities not only for transportation companies but also for manufacturers, logistics operators, investors and energy businesses. For Azerbaijan and Uzbekistan, better connectivity can therefore reinforce both trade and investment.

The relationship is also becoming more balanced in terms of investment flows. More than 130 companies with Uzbek investment are registered in Azerbaijan, operating in sectors including industry, agriculture, construction, transport and services. Azerbaijan, meanwhile, is investing in Uzbekistan through projects such as PASHA Holding’s Ritz-Carlton hotel and residential complex in Tashkent and the Sea Breeze Uzbekistan tourism and residential development in the Tashkent region.

Taken together, these developments suggest that Azerbaijan and Uzbekistan are building something considerably broader than a conventional trading relationship. Their economic interests complement each other: Uzbekistan brings a large Central Asian market, industrial capabilities and access to regional supply chains, while Azerbaijan offers connections across the Caspian Sea and toward the South Caucasus, Türkiye and European markets.

The next challenge will be to turn this complementarity into deeper economic integration. More joint ventures, manufacturing projects, investment flows, transport links and energy cooperation could make the bilateral partnership increasingly resilient.

The rapid trade growth is therefore only one part of a larger story. Azerbaijan and Uzbekistan are gradually constructing an economic relationship in which goods, capital, energy and infrastructure move across borders together. If this process continues, their partnership could become an important economic bridge between Central Asia and the wider Eurasian market.