UAE, Azerbaijan agree to develop economic partnership

SHUSHA, Azerbaijan, 1st August 2024 (WAM) — The ninth session of the Joint Intergovernmental Commission (JIC) of the United Arab Emirates and Azerbaijan on Economic, Trade and Technical Cooperation between the two countries was held in the Azerbaijani city of Shusha, chaired by Abdullah bin Touq Al Marri, Minister of Economy; and his Azerbaijani counterpart Mikayil Jabbarov. The session was attended by several high-ranking officials and government and private sector representatives from both sides.

During the meeting, the UAE and Azerbaijan agreed to develop their existing economic partnership in the sectors of entrepreneurship, SMEs, new economy, tourism, aviation, industry, innovation, technology, agriculture, food security, logistics, culture, energy, renewable energy and investment.

Bin Touq said the UAE and Azerbaijan have strong strategic relations and economic partnerships that have been developed for more than three decades. These relations are characterized by frequent exchange of high-level visits between the two countries. The latest was the visit President His Highness Sheikh Mohamed bin Zayed Al Nahyan to Azerbaijan in January last year, during which agreements were signed between the two countries in areas of mutual interest.

He said, “The latest JIC session is a key milestone in strengthening economic ties between the UAE and Azerbaijan. The meeting discussed several important economic sectors that have the potential to drive sustainable development of both economies. We want to work closely with our Azerbaijani partners to open new avenues of cooperation and create diverse opportunities in various sectors, thereby supporting sustainable growth of both economies.”

During the meeting, Bin Touq discussed the opportunities and benefits offered by the UAE business community, in particular the changes made to the Commercial Companies Law that allowed 100 percent foreign ownership. The change led to the registration of over 275,000 new companies in the UAE in a year and a half, bringing the total number of companies operating in the UAE to over 788,000 by the end of 2023. In addition, visa and residency systems were modernized, self-employment and green residency paths were introduced, thus promoting the country’s attractiveness to talents, skills and entrepreneurs in various strategic sectors.

Bin Touq called on the private sector of Azerbaijan to take advantage of the flexible and competitive policies offered by the UAE business environment, which facilitate the establishment and launch of new businesses. He noted that recent updates to various laws, including the law on family businesses, commercial agencies, cooperatives and trade through modern technological means, have contributed to providing a more favorable business climate. He further emphasized the UAE’s commitment to driving sustainable economic growth by promoting a circular economy, in particular highlighting the “UAE Circular Economy Agenda 2031.” This agenda is crucial to increasing sustainability in the country’s development over the next decade.

In detail, both sides agreed to establish joint working teams consisting of members of relevant entities from both sides to explore further opportunities for economic cooperation in priority sectors at both government and private levels. They will also provide comprehensive support to exporters and importers to facilitate and streamline the exchange of goods and services, as well as their diversification. This is especially important considering that the UAE serves as an important trade gateway, facilitating the flow of Azerbaijani exports to regional markets. The meeting also explored promising investment opportunities in the food and manufacturing industries and sought to create new channels of communication between the two business communities.

The UAE and Azerbaijan explored the potential of implementing tailored programs and initiatives to boost startup growth in both markets. Discussions focused on increasing investment opportunities and enabling exports to access new markets. Both sides agreed on the importance of motivating SME owners and entrepreneurs to invest in new sectors of the economy, thereby increasing their contribution to the GDP of both countries.

The UAE and Azerbaijan have expressed interest in organizing joint tourism exhibitions, events and conferences to highlight the main tourist and historical attractions of both countries and to leverage their diverse tourism offerings. This cooperation is expected to increase the inflow of tourists from all over the world, especially considering the fact that there are over 185 flights between the two destinations every month, operated by UAE national carriers.

The two sides discussed ways to strengthen cooperation in the areas of digitalization, innovation and technology. The need to exchange insights on the development of an innovation ecosystem and promote cooperation between government entities focused on artificial intelligence and innovative solutions in both countries was emphasized.

The UAE and Azerbaijan explored ways to strengthen cooperation in food security and agriculture by increasing trade in food products, as well as agricultural and livestock products. Both sides also reviewed the latest trends in the agricultural sector.

Strengthening cooperation and investment exchange in the energy and renewable energy sector was another important area of ​​focus. The JIC session further explored prospects for partnerships to launch new projects, especially in power generation, and organized workshops for experts from both countries on improving energy efficiency.

The UAE is Azerbaijan’s largest trading partner in the Arab world, accounting for 40 percent of its trade with the region. In 2023, non-oil trade between the two countries exceeded $1.64 billion (AED 6 billion), an impressive 68 percent increase compared to 2022.

Preliminary data also indicates an increase in non-oil trade between the two countries during the period January-April 2024, which reached USD 617 million (AED 2.3 billion), an increase of 62% compared to the same period in 2023.

UAE investments in Azerbaijan are estimated to reach $1.1 billion by the end of 2022, making it the largest Arab and seventh-largest global investor in Azerbaijan. Meanwhile, Azerbaijani investments in the UAE amounted to over $210 million by the end of 2021.