Azernews.Az

Qabil Ashirov

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Azerbaijan’s economic partnership with Georgia continues to play an important role in the development of the South Caucasus. In 2025, Azerbaijan ranked as Georgia’s second-largest source of foreign direct investment, according to revised data published by Georgia’s National Statistics Office (Geostat) in August 2026. This achievement highlights the importance of Azerbaijani capital in Georgia’s investment landscape and provides a strong foundation for examining the wider economic relationship between the two neighbouring countries.

The latest figures announced in October 2026 further illustrate the scale of this partnership. More than 5,500 companies operating in Georgia have Azerbaijani investment, while the total volume of Azerbaijani investment in the country stands at $3.6 billion, according to Azerbaijan’s Ambassador to Georgia, Faig Guliyev. These figures demonstrate the extensive business connections between the two economies and the role of Azerbaijani investors in Georgia’s commercial environment.

The investment relationship also continued throughout 2026. According to Geostat, Azerbaijani direct investment in Georgia reached $45.3 million during the first half of the year. This figure reflects investment recorded during January–June 2026, while the $3.6 billion figure represents the overall investment volume cited by the Azerbaijani ambassador. Together, these indicators illustrate both ongoing investment activity and the broader scale of Azerbaijani economic engagement in Georgia.

The significance of these investments extends across multiple areas of economic activity. Azerbaijani businesses operating in Georgia can access local customers, develop commercial partnerships and participate in regional supply chains. Their activities can support employment, business services and infrastructure development, while Georgian companies can benefit from closer connections with Azerbaijani investors and the wider regional market.

Trade represents another important dimension of bilateral cooperation. The annual trade turnover between Azerbaijan and Georgia stands at approximately $1.4 billion, with both countries aiming to increase the figure to $2 billion. Achieving this objective would expand commercial opportunities for producers, exporters, transport companies and service providers across both economies.

Energy cooperation provides a longstanding foundation for these economic ties. The Baku–Tbilisi–Ceyhan oil pipeline and the South Caucasus gas pipeline connect Azerbaijan’s energy resources with international markets through Georgian territory. These routes support energy exports, transit services and regional connectivity, reinforcing the economic importance of cooperation between the two countries.

Transport infrastructure adds another dimension to this partnership. The Middle Corridor links Central Asia and the Caspian Sea with Azerbaijan, Georgia, Türkiye and European markets. The Baku–Tbilisi–Kars railway forms a key component of this network, creating opportunities for freight transportation, logistics services and investment in related infrastructure. As international trade develops, companies in both countries can benefit from expanded cargo flows and stronger commercial connections.

The geographical positions of Azerbaijan and Georgia create complementary advantages. Azerbaijan serves as a gateway across the Caspian Sea, connecting the South Caucasus with Central Asian economies. Georgia provides access towards the Black Sea and Türkiye, linking regional transport routes with wider international markets. Their cooperation therefore supports economic activity extending beyond bilateral trade and investment.

Looking ahead, the partnership offers opportunities in renewable energy, electricity transmission, tourism, agriculture, manufacturing and digital services. Azerbaijani investment can contribute capital and commercial expertise, while Georgia’s transport links and business environment offer opportunities for companies seeking regional expansion. Cooperation in these sectors can broaden the economic relationship and encourage greater participation by private businesses.

The regional significance of this partnership lies in its combination of investment, trade, energy and transport connectivity. Azerbaijan’s second-place position among Georgia’s foreign direct investors in 2025, the continued investment recorded in 2026 and the presence of more than 5,500 Azerbaijani-invested companies illustrate the breadth of their economic relationship.

By expanding these connections, Azerbaijan and Georgia can strengthen their commercial ties, create new opportunities for businesses and reinforce the South Caucasus as a bridge between the Caspian region and international markets. Their shared economic interests provide a substantial platform for continued cooperation and regional prosperity.