Since the presidential election in April 2018, the Government of Azerbaijan has undergone significant changes. These include the nomination of a new prime minister and the appointment of several key ministers in charge of education, tax reforms, agriculture and rural development, the environment, and energy. The new Government has been tasked with continuing the reforms in key sectors to recover economic growth.

Supported by stable oil production and a modest acceleration in domestic demand, real GDP expanded by 1.4 percent in 2018. While oil production plateaued, the hydrocarbons sector overall posted growth of 1.1 percent, thanks to higher exports of natural gas. The non-energy economy expanded by 1.8 percent, reflecting greater dynamism in most economic sectors. Consumer price inflation decelerated sharply in 2018, falling to 1.6 percent from 7.9 percent in 2017.

The notable increases in the 2019 budget allocations for education (up by 13 percent) and health care (by 44.5 percent) are important in terms of improving human capital. But further efforts are needed to align budget spending with development needs, including through strengthening medium-term budgeting and the public investment management system.

Last Updated: Apr 10, 2019

Dubai Non-oil trade with Azerbaijan

Source: Dubai Customs

Among countries trading with Dubai, Azerbaijan ranks No. 98 (2018). 

Certificates of Origin

• In 2017, 2,766 certificates were issued with a total value of 386,908,474 AED,
• In 2018, 2,786 certificates were issued with a total value of 377,565,481 AED,
• In Jan – Jul 2019, 1,534 certificates were issued with a total value of 195,464,805 AED.

Gross Domestic Product

• 87 billion USD (2016)
• 87 billion USD (2017)
• 94 billion USD (2018)

Opportunities

• Export-oriented agribusiness, including:
  • Fruit and vegetable farming and processing, meat and poultry farming and processing, cotton farming and textiles.
• Tourism and hospitality, including:
  • construction and operation of 4* and 3* hotels
  • introduction of F&B and entertainment franchises
• Logistics and transportation:
  • Port of Alat has been built outside of Baku, which will feature a free zone that has been developed under an advisory contract with JAFZA
  • North-South Transportation Corridor: Azerbaijan, Russia, Iran, India and many European countries stand to benefit greatly from the upcoming launch of the North-South Multimodal Transportation Corridor, which is set to significantly cut transit time for cross-continental Asia-Europe cargo
  • One Belt – One Road: China, Central Asian countries, Azerbaijan, Georgia, and Turkey stand to benefit greatly also from the ancient Silk Road, which is being revitalized currently with significant political support from China.

Tourism Potential

Three UAE airlines conduct daily flights to Baku.

• Flydubai
• Etihad
• Air Arabia

UAE accounted for the maximum number of tourists visiting Azerbaijan, amongst the GCC countries.  UAE residents and citizens were the 5^th largest group to visit Azerbaijan in 2018.