In our recent Geopolitical Report Podcast, we delved into Azerbaijan’s ongoing economic diversification efforts and Baku’s foreign policy initiatives in the Caspian Sea region and Central Asia with Simona Scotti, a Senior Researcher at the Topchubashov Center of Baku.
Scotti, whose expertise lies in security, geopolitics, and energy in the South Caucasus, highlighted Azerbaijan’s progress in diversifying its economy while acknowledging that the energy sector remains its primary driver.
Despite notable advancements, Azerbaijan is still in the process of economic diversification, with non-oil and gas sectors doubling their revenues even though their contribution to the national economy is still limited. Key areas in this diversification include logistics, agriculture, and green energy.
Scotti emphasised Azerbaijan’s active promotion of relations with Caspian Sea countries and Central Asian republics, particularly Turkmenistan and Kazakhstan, highlighting its strategic importance in Baku’s foreign policy agenda.
Azerbaijan’s strategic location and its efforts towards regional cooperation position it well to become a crucial logistics hub bridging Europe and Asia. This role, if successfully realised, could significantly contribute to the country’s economic diversification and support national economic development objectives. Central to this vision is leveraging partnerships with neighbouring countries and enhancing transport infrastructure.
In the concluding segment of the podcast, Scotti outlined several Azerbaijani investment projects and highlighted sectors offering attractive opportunities for foreign companies and countries. These include infrastructure development, agriculture, and renewable energy, signalling potential avenues for international collaboration and investment in Azerbaijan’s evolving economic landscape.
Read also | Strategic Significance of the new Azerbaijan-Iran Railway Project: Shaping South Caucasus Geopolitics |
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