Uzbekistan and Azerbaijan: A New Stage of Partnership

Bilateral relations between Uzbekistan and Azerbaijan are reaching a new level. Historical proximity, cultural affinity, and geographic connectivity are increasingly being transformed into concrete economic projects and infrastructure initiatives.

Today, cooperation is characterized by active political dialogue, growing trade turnover, and increasing investment flows. The key drivers are foreign direct investment, industrial cooperation, and joint infrastructure projects. In the future, the strategic partnership between the two countries will focus on expanding trade, deepening economic cooperation, and developing tourism exchange. In 2025, the parties signed programs for industrial cooperation and trade development to increase mutual trade turnover to $1 billion by 2030.

Macroeconomic Dynamics and Investment Plans

An analysis of macroeconomic indicators demonstrates a steady positive trend in bilateral cooperation. Over the past eight years, Uzbekistan has attracted $120 billion in foreign direct investment, with capital inflows accelerating amid economic liberalization and an improved investment climate.

To significantly increase trade turnover, the governments of Uzbekistan and Azerbaijan are working on creating a favorable legal and technical trade regime. Uzbekistan has announced new priorities in its investment policy, planning to attract an additional $50 billion in foreign investment in 2026.

AUIC Strategy

The Azerbaijan – Uzbekistan Investment Company (AUIC) focuses on projects with sustainable long-term growth potential, primarily within the territories of the two countries. At the same time, the company remains open to initiatives from other countries, provided they align with the strategic interests of both countries.

The investment strategy is built around two areas: stable sectors with predictable demand and emerging sectors with high technological potential. This balance makes it possible to both reduce risks and participate in the development of new markets. Priority areas include healthcare, logistics, manufacturing, food processing, fintech, IT, education, and energy.

The company is actively developing international partnerships, cooperating with chambers of commerce and industry as well as business associations. Potential partners include companies from Germany, Italy, other European countries, Japan, and the Middle East.

Investment Projects

AUIC is already implementing several investment initiatives. In particular, the company invested $1.7 million in a joint venture with “Engineering+” in the technology sector. The project envisages localizing the production of next-generation data center equipment based on ICE+ immersion cooling technology, including micro data centers and high-performance servers for artificial intelligence and cloud computing tasks. The products are oriented toward both the domestic market and export to Central Asian and Middle Eastern countries. In the field of education, AUIC acquired a stake in the American University of Technology in Tashkent, which operates in partnership with Cintana Education and Arizona State University. The volume of direct investment amounted to $2 million. The funds are directed toward infrastructure development and strengthening the university’s material and technical base. Currently, the company is considering 15 promising projects across various sectors.

Prospects

Historically, ties between Uzbekistan and Azerbaijan were shaped through trade and cultural exchange. Today, they are being strengthened through economic integration, the development of transport connectivity, and investment cooperation.

The expansion of business contacts, the creation of joint ventures, and the exploration of new market niches are forming a solid foundation for further growth in investment flows. This comprehensive approach makes it possible not only to consolidate achieved results but also to ensure the long-term development of the strategic partnership. In the context of the redistribution of global investment flows, countries are shaping a regional model of partnership focused on developing the investment climate, infrastructure, and technology.

G. Khonnazarov, UzA