When the Belt and Road Initiative (BRI) was announced over a
decade ago, many countries saw their role simply as transit points,
conduits for the colossal flow of Chinese goods westward.
Azerbaijan, however, envisions something far more ambitious:
transforming itself from a logistical waypoint into a thriving
center of business, innovation, and investment.
In a recent interview, Azerbaijani President Ilham
Aliyev laid out a compelling vision of this future — one
that leans heavily on infrastructure built over the past two
decades and on Azerbaijan’s strategic position straddling
East-West and North-South corridors. But the
country’s ambitions go beyond mere geography. The strategy is to
build lasting industries along the Belt and Road, drawing in
Chinese capital, technology, and entrepreneurship to fuel
Azerbaijan’s transformation into a commercial hub.
Already, signs of this pivot are evident. Azerbaijan has
established six trade houses in China and begun exporting wine to
Chinese markets, a modest but symbolic entry into one of the
world’s most lucrative consumer spaces. More significantly, at a
recent bilateral forum, Chinese and Azerbaijani companies inked
over $300 million in new investment agreements, a figure that
Azerbaijani officials believe will soon scale into the
billions.
“We want to talk in billions, and I think this is
absolutely realistic,” the President said. Sectors
like renewable energy, manufacturing, and transportation are at the
forefront of Azerbaijan’s push, with the country highlighting its
skilled labor force, growing domestic market, and investor-friendly
legal environment as key draws for foreign capital.
This approach mirrors a broader global trend among emerging
economies participating in the Belt and Road
Initiative. No longer content to be passive transit zones,
countries like Azerbaijan are seeking to leverage their
infrastructure to build dynamic, diversified economies. The idea is
simple: if goods are passing through, why not ensure that some of
the value stays?
Few countries are as well-positioned to execute this strategy as
Azerbaijan. Years of heavy investment in infrastructure, including
highways, railways, seaports, and eight international airports,
have paid off. The country now boasts one of the largest air cargo
operations globally, enhancing its ability to move goods swiftly
and efficiently. Reforms in customs administration, particularly
digitalization, have slashed the time it takes for cargo to move
from China to the Black Sea through Azerbaijan to just 10 to 12
days, a remarkable achievement in a region often plagued by
bureaucratic delays.
The result? An 86% growth in transit transportation between
China and Azerbaijan over the past year, with officials insisting
that this is “only the beginning.” Azerbaijan is positioning itself
as a safer, shorter, and more efficient alternative to traditional
transit routes. In a world increasingly concerned about
geopolitical tensions and supply chain vulnerabilities, this
message resonates.
Yet, challenges remain. Expanding trade volumes is only one part
of the equation. Building the industries and businesses that can
sustain long-term economic growth requires deep institutional
support, continued legal reforms, and above all, the ability to
attract and retain investors in a competitive global
environment.
Azerbaijan’s officials are acutely aware of this. Hence, they
emphasize the ease of doing business in the country: a favorable
tax regime, numerous incentives for foreign investors, and a
government eager to facilitate cross-border partnerships. The goal
is not just to move goods but to create ecosystems where
manufacturing, technology, and services flourish.
Another part of the strategy is regional cooperation. Azerbaijan
has launched joint ventures with neighboring countries to
streamline cargo movement and create integrated logistics
corridors. In the face of global trade disruptions and an
increasingly fractured international order, such regional
partnerships may offer crucial resilience.
Looking ahead, Azerbaijan’s ambitions seem closely tied to two
key drivers: renewable energy and digital
transformation. As the world pivots toward greener
economies, Azerbaijan hopes to become a significant player in
renewables, particularly wind and solar. Simultaneously, by
embracing digitalization — in customs, in logistics, and
potentially in broader sectors — the country is setting the
groundwork for a future economy less dependent on traditional
energy exports.
Critics might argue that Azerbaijan’s pivot is ambitious given
global economic headwinds and increasing competition from other
transit routes, including the northern railways through Russia and
the southern sea lanes. However, in an era when supply chain
security has become a premium, Azerbaijan’s bet on reliability and
efficiency could give it an edge.
Ultimately, Azerbaijan’s story is one of evolution: from an
energy-exporting economy heavily reliant on oil and gas to a
diversified, innovation-driven market strategically situated at the
crossroads of continents. By actively participating in and helping
shape the next phase of the Belt and Road Initiative, Azerbaijan is
staking a claim to a more prosperous, connected future.
As the second decade of the Belt and Road begins, Azerbaijan is
making it clear: it does not merely wish to be a bridge between
East and West. It wants to be a destination.
