UAE And Azerbaijan Commit To Strengthening Economic Partnership For Sustainable Growth

The ninth session of the UAE-Azerbaijan Joint Intergovernmental Commission (JIC) for Economic, Trade and Technical Cooperation took place in Shusha, Azerbaijan. The meeting was chaired by Abdullah bin Touq Al Marri, Minister of Economy, and his Azerbaijani counterpart Mikayil Jabbarov. Senior officials and representatives from both governments and private sectors attended the session.

During the meeting, both nations agreed to enhance their economic partnership across various sectors. These include entrepreneurship, SMEs, tourism, aviation, industry, innovation, technology, agriculture, food security, logistics, culture, energy, renewable energy and investment. Bin Touq highlighted that the UAE and Azerbaijan have strong strategic relations that have evolved over three decades.

"The latest JIC session is a key milestone in strengthening the economic ties between the UAE and Azerbaijan. The meeting discussed several vital economic sectors that have the potential to drive the sustainable development of both economies. We are keen to work closely with our Azerbaijani partners to open up new avenues for collaboration and create diverse opportunities in various sectors, thereby supporting the sustainable growth of both economies," said Bin Touq.

Bin Touq reviewed the UAE’s business environment improvements during the meeting. Notably, amendments to the Commercial Companies Law now allow 100 percent foreign ownership. This change led to over 275,000 new companies registering in just a year and a half. By the end of 2023, more than 788,000 companies were operating in the UAE.

He urged Azerbaijani businesses to leverage these flexible policies for establishing new ventures. Recent legislative updates in family businesses law and commercial agencies have also contributed to a supportive business climate. Additionally, visa and residency systems were revamped to attract talents and entrepreneurs.

Trade and Investment Growth

The UAE is Azerbaijan's top trading partner in the Arab world, accounting for 40 percent of its trade with the region. In 2023, non-oil trade between them exceeded $1.64 billion (AED6 billion), marking a 68 percent increase from 2022. Preliminary figures indicate a further rise in non-oil trade from January to April 2024, reaching $617 million (AED2.3 billion), reflecting a 62 percent growth compared to the same period in 2023.

The UAE’s investments in Azerbaijan were estimated at $1.1 billion by the end of 2022. This makes it the largest Arab investor and seventh globally in Azerbaijan. Meanwhile, Azerbaijani investments in the UAE amounted to over $210 million as of late 2021.

Joint Initiatives

Both parties agreed on forming joint work teams from relevant entities to explore further economic collaboration opportunities at government and private sector levels. They will support exporters and importers to enhance goods exchange and diversify services. Given that the UAE serves as a vital trade gateway for Azerbaijani exports to regional markets.

The discussions also focused on boosting startups' growth through tailored programs and initiatives. Both sides emphasised motivating SME owners to invest in new economy sectors to increase their GDP contributions.

Tourism Collaboration

The UAE and Azerbaijan expressed interest in organising joint tourism exhibitions and events to highlight their key attractions. This collaboration aims to boost global tourism inflows since there are over 185 flights connecting both destinations monthly via UAE's national carriers.

Innovation and Technology

Collaboration in digitalisation, innovation, and technology was another focus area during the meeting. Both sides highlighted exchanging insights on developing an innovative ecosystem and promoting cooperative efforts between government entities focused on AI solutions.

Agriculture and Food Security

The two countries explored ways to strengthen cooperation in food security through increased trade in food products as well as agricultural goods. They reviewed recent trends in agriculture while discussing potential partnerships for new projects.

Energy Sector Cooperation

The JIC session also focused on enhancing cooperation in energy sectors like power generation. Prospects for launching new projects were explored alongside organising workshops for experts on energy efficiency improvement from both countries.

The meeting concluded with an agreement on implementing tailored programs for startups' growth while enhancing investment opportunities across various sectors.

With inputs from WAM