ADB: Regional cooperation to secure new markets essential to Azerbaijan’s accession to WTO

The Asian Development Bank will explore non-sovereign investments in renewable energy, manufacturing, agribusiness, and logistics, including those made through blended finance and in both foreign and local currencies, according to the ADB's Azerbaijan: Country Partnership Strategy (2025–2029), Report informs.

The ADB says Azerbaijan aims to continue transitioning to a diversified, competitive, and green economy while reducing the public sector
footprint, as evident in the government’s plan to corporatize several state-owned enterprises (SOEs):

"The government strives to create a more resilient economy by incentivizing renewable investments, climate- and disaster-resilient infrastructure, and improved disaster risk management. ADB plans to help accelerate economic diversification by supporting hard and soft trade infrastructure, investing in local businesses, and promoting innovation. ADB will also support the development of the local capital market."

According to the document, export diversification will require the development of products and services with higher value-added: "Focusing on
increased non-oil exports can also attract more productive foreign direct investment, create jobs, and reduce the economy’s emission intensity. Diversifying fossil fuel exports to knowledge-based products and services will create a resilient growth model. Measures to diversify Azerbaijan’s export products could include facilitating new industries in, for example, manufacturing or digital services by reducing entry barriers, promoting entrepreneurship, and attracting domestic and foreign investment; corporatizing SOEs; supporting the
development of a robust innovation ecosystem; fostering efforts to upskill the workforce; and creating better opportunities for technically qualified women in emerging sectors."

The ADB believes regional cooperation to secure new markets is essential to Azerbaijan’s trade diversification strategy, as is its accession to the World Trade Organization (WTO).

Azerbaijan has been a member of ADB since 1999. During this period, the bank has provided the country with more than $5 billion in loans, including $1.5 billion for transport projects, $1.7 billion for energy projects.