Investments Up 10%: Azerbaijan Courts Foreign Capital in Baku

From January through August, Azerbaijan invested 12.6 billion manat in fixed assets. That amounts to approximately 6.5 billion euros, a 10% increase compared to the same period last year. The figure comes from Azerbaijan’s State Statistics Committee. Only 8.4 billion manat went to sectors outside of oil and gas. This segment grew by 1.4%.

With these figures in hand, Baku opened the second Azerbaijan International Investment Forum on September 25. According to the organizers, participants signed twelve documents on the first day.

Growth Comes from the Non-Oil Sector

The overall economy is growing slowly. From January through August, gross domestic product reached 87.7 billion manat, or approximately 45.4 billion euros. In real terms, this represents a 1.2% increase over the previous year, the Statistics Committee reported. Value added in the oil and gas sector fell by 0.8%. The non-oil sector grew by 2.1%.

The Central Bank of Azerbaijan lowered its forecast at the end of July. “We expect economic growth of 0.5% for 2026,” said Central Bank Governor Taleh Kazimov on July 31. Previously, the central bank had expected 1.1%. The EBRD is more optimistic. In its September forecast, it maintains its projections of 2% for 2026 and 2.5% for 2027.

Banks are performing well. Their net profit rose by 22.7% from January to August to 949.7 million manat, or about 490 million euros. This is according to data from the central bank. In the same period last year, the figure was 774.3 million manat.

The Middle Corridor as a Selling Point

In his speech, Minister of Economy Mikayil Jabbarov focused on transit. He cited a 2023 World Bank study, which indicated that trade via the Middle Corridor could triple by 2030. Transport times could be cut in half if the right investments are made.

According to Jabbarov, the infrastructure along the corridors is now complete. He mentioned the Port of Baku, the Baku–Tbilisi–Kars railway line, the shipyard, and the Caspian freight fleet. The next phase is intended to improve the quality of services. To this end, Azerbaijan is investing in digitalization and logistics terminals together with partner countries.

Jabbarov also emphasized energy relations. Azerbaijan supplies natural gas to 16 countries, ten of which are in the EU. Most foreign companies in the country reinvest their profits locally, the minister said.

What German Companies Need to Know

A market is opening up for German logistics companies, plant manufacturers, and software providers. Baku is seeking partners for terminals, digital customs clearance, and industry along the transit routes. The infrastructure is in place; now the focus is on operations and efficiency. Investors should factor in the country’s dependence on oil prices. The non-oil sector is growing, but at a modest rate of just over 2%.

Sources: State Statistical Committee of Azerbaijan (EN), Central Bank of Azerbaijan (EN), EBRD Regional Economic Prospects September 2026 (EN), APA (EN), Trend (EN), ECB Reference Rate September 24, 2026 (DE)

SK, Frankfurt