Non-oil exports up 17.6%: Azerbaijan is selling more sugar, aluminum, and yarn

Azerbaijan’s non-oil exports rose by 17.6% to $2.81 billion from January through August 2026. This was reported by the Center for Analysis of Economic Reforms (CAERC), a government agency in Baku. In August alone, exports rose by 13% to $350.8 million. The country is thus distancing itself from the oil sector, which is struggling.

Oil and gas are slowing down, while everything else is growing

The State Statistics Committee estimates economic output for the first eight months at 87.7 billion manat. This represents a 1.2% increase compared to the same period last year. The oil and gas sector contracted by 0.8% to 26.2 billion manat. The economy excluding oil and gas grew by 2.1% to 61.5 billion manat. Industrial production excluding oil rose by 5.4%, while total industrial output fell by 0.4%.

President Ilham Aliyev outlined these figures on September 26 at the second International Investment Forum in Baku. He noted that the non-oil sector currently accounts for more than 70% of economic output. At the same time, he emphasized: “Cooperation with international partners will continue in order to reduce the dominance of oil and gas in exports.”

Oil nevertheless remains the mainstay of state finances. The state-owned oil company SOCAR reported a decline for its marketing division, which sells non-oil goods. Its revenues fell by 23.9% from January to August, to $207.3 million. That is $65 million less than in the same period last year.

Agriculture and metals drive growth

According to CAERC data, Azerbaijan sold agricultural products worth $732 million, an increase of 19.2%. Processed agricultural products generated $255.8 million, 22.1% more than in the previous year. Together, the two groups totaled $987.8 million, representing a 19.9% increase.

For individual commodities, the increases were even more significant. Sugar exports more than doubled, rising 2.3-fold according to the CAERC. Cotton yarn increased by 62.2%, and aluminum by 42.8%. Animal and vegetable fats and oils grew by 30.2%, and ferrous metals by 20.5%. Fruit and vegetable exports are up 13.7% from the previous year, and tea exports are up 12.1%.

The government is supporting this trend. It plans to reimburse exporters for a portion of their logistics costs, as reported by the Trend agency.

For German exporters and investors, this means: Azerbaijan is seeking partners in the processing, metal, and agricultural technology sectors. Suppliers of machinery for sugar refineries, spinning mills, or aluminum plants will benefit from government support and growing demand. Investors should factor in the government’s reliance on oil revenues: A weak oil price first affects the budget, then purchasing power.

Sources: State Statistical Committee of Azerbaijan (EN), Center for Analysis of Economic Reforms (CAERC) (EN), Presidential Administration via APA (EN), Report.az (EN), Trend (EN)

SK, Frankfurt