During the official visit of President of Azerbaijan Ilham Aliyev to Germany, the “Joint Declaration on the Establishment and Activities of the Azerbaijan-Germany Business Council” was signed. This document marks the transition of economic relations between the two countries to a new institutional stage by establishing a systematic, continuous, and results-oriented dialogue mechanism between state institutions and the private sector. The Business Council will serve as a platform for expanding direct contacts between the business communities of the two countries and identifying new cooperation opportunities.

 

The creation of the Council reflects Germany’s growing interest in Azerbaijan’s economic potential, investment opportunities, and its role in regional connectivity. The main objectives of the Business Council are to promote sustainable, innovative, and future-oriented economic ties; support the identification, development, and implementation of joint initiatives and investment opportunities; ensure the exchange of expertise, knowledge, and experience across sectors (including through working formats); and prepare recommendations aimed at improving the business and investment environment in both countries.

 

Azerbaijan-Germany strategic economic partnership

Economic cooperation between Azerbaijan and Germany has reached a qualitatively new stage in recent years. More than 200 enterprises backed by German investment operate in Azerbaijan across the industrial, agricultural, transport, construction, trade, and service sectors. To date, total direct investments from Germany to Azerbaijan have reached $937.5 million, with $53.4 million allocated to the oil and gas sector and $884.1 million to the non-oil and gas sector. During the same period, direct investments from Azerbaijan to Germany totaled $667.5 million.

 

In the first half of the current year (January–June), trade turnover between Azerbaijan and Germany stood at approximately $573 million. Over the six-month period, Azerbaijan exported goods worth $234.77 million to Germany, while imports from Germany to Azerbaijan amounted to $338.11 million. Last year, bilateral trade turnover between the two countries exceeded $1.376 billion.

 

The cooperation prospects between Azerbaijani and German companies are high. Azerbaijan’s favorable investment climate, regional connectivity, and transport-logistics potential create new opportunities for collaboration in green energy, industry, and technology transfer. The signing of the Joint Declaration on the Establishment of the Azerbaijan-Germany Business Council during President Ilham Aliyev’s official visit to Germany is one of the most important outcomes of this process. The new body will not only strengthen cooperation between the business communities of the two countries but will also contribute to a more systematic and institutional development of economic relations.

 

The establishment of the Azerbaijan-Germany Business Council holds special significance as it institutionalizes the economic dialogue between the two nations. The new platform will ensure regular meetings of business representatives, discussions on joint projects, preparation of investment initiatives, and the prompt resolution of issues faced by entrepreneurs. Thus, economic cooperation will move beyond sporadic business contacts and become a sustained, long-term mechanism.

 

Creation of the Business Council reflects Germany’s growing interest in Azerbaijan’s economic potential

In recent years, Azerbaijan has become one of the region’s key transport and logistics hubs. The development of the Middle Corridor, the country’s role in the East-West and North-South international transport routes, and its contribution to energy security in the Caspian basin have further drawn the attention of European states.

 

At the same time, reforms carried out to diversify the Azerbaijani economy, the creation of industrial parks and free economic zones, the development of the digital economy, and “green energy” projects create new cooperation opportunities for companies from technologically advanced countries like Germany.

 

Germany possesses one of Europe’s largest economies and advanced industrial technologies. Its rich experience in mechanical engineering, the automotive industry, chemicals, alternative energy, digital technologies, and vocational education aligns closely with Azerbaijan’s economic development priorities.

 

The activities of the Business Council are expected to increase the investment activity of German companies in Azerbaijan in industry, agriculture, logistics, transport, renewable energy, water management, and digital transformation. Simultaneously, Azerbaijani companies will be able to expand their access to the German market. One of the main advantages of the Council is the creation of an effective coordination mechanism between state institutions and the business community. Through this platform, entrepreneurs will have the opportunity to directly discuss legal, administrative, and investment-environment issues.

 

In addition, expert groups and working formats will carry out the exchange of knowledge and experience across sectors, leading to recommendations for improving economic policy. This will contribute to further enhancing the business environment and strengthening investor confidence.

 

Azerbaijan’s large-scale projects in renewable energy open special prospects for cooperation with Germany. The declaration of the Karabakh and East Zangezur economic regions as “green energy zones” and the expansion of wind and solar energy projects create significant opportunities for applying German technologies. At the same time, favorable conditions are being formed to implement joint projects in the digital economy, Industry 4.0, energy efficiency, smart cities, and innovative manufacturing technologies.

 

Azerbaijan’s position as a strategic transit hub creates advantages for German business

Azerbaijan’s position as a strategic transit hub between Europe and Central Asia creates additional advantages for German businesses. German companies can expand their reach into the South Caucasus, Central Asia, and other regional markets through Azerbaijan. This dynamic can transform bilateral cooperation into an important platform for broader regional economic development.

 

The establishment of the Azerbaijan-Germany Business Council marks the beginning of a new stage in developing economic relations between the two countries. The Council will play a significant role in promoting sustainable, innovative, and future-oriented economic ties, shaping new investment projects, expanding technology and knowledge exchange, and improving the business environment.

 

This initiative reflects Germany’s appreciation of Azerbaijan’s growing economic and geostrategic importance, while demonstrating the further strengthening of Azerbaijan’s position in international economic cooperation platforms. In the medium and long term, the Business Council's activities will make a significant contribution to increasing mutual investments, developing the non-oil sector, and deepening the strategic economic partnership between the two nations.

 

Azerbaijani products presented at various exhibitions in Germany

Azerbaijani products were showcased this year in March at the 30th International Wine and Spirits Fair in Düsseldorf under the unified “Made in Azerbaijan” country stand. Our companies will also present their products at the unified country stand during the “Anuga 2027” international fair, which will take place in Cologne on October 9–13 next year.

 

Additionally, Azerbaijan has been represented 14 times at the traditional “International Green Week,” considered one of Europe’s largest exhibitions, where local products were displayed under the unified “Made in Azerbaijan” banner.

 

Furthermore, in May last year, a “Roadmap for the Expansion of Trade, Economic and Investment Relations between Azerbaijani and German Companies” was signed by the Eastern Committee of German Economy, the Export and Investment Promotion Agency (AZPROMO), and the German-Azerbaijani Chamber of Foreign Trade. The implementation of this document continues to strengthen bilateral economic, trade, and investment ties while driving joint projects and initiatives forward.

 

Fruitful cooperation between SOCAR and German companies

SOCAR continues its successful, long-term, effective, and mutually beneficial cooperation with German energy companies, particularly Uniper. The joint projects implemented through this partnership carry significant weight for European energy security. A dedicated Cooperation Program between SOCAR and Uniper covers the 2025–2026 period, with clear prospects for further expanding cooperation across various areas.

 

In addition, SOCAR maintains long-standing, effective ties with SAP SE, the multinational enterprise software provider located in Walldorf, Baden-Württemberg. Mutual relations have developed steadily over the years; in 2008, SOCAR began implementing the SAP ERP system—a leading solution in business resource management—alongside International Financial Reporting Standards. SOCAR has now utilized SAP across its operations for 18 years. Moving forward, both companies see strong existing and future opportunities for collaboration in human capital, innovation, and digital transformation.