Azerbaijan emerges as a manufacturing hub between Central Asia and Europe
Azerbaijan's Economy Minister Mikayil Jabbarov said the country is becoming a manufacturing hub between Central Asia and Europe. According to him, this is being driven by its geographic location, transport infrastructure and long-term investment.
Abdulrahman Sadikhli4 min read
Azerbaijan is becoming a manufacturing hub between Central Asia and Europe. This was stated by Economy Minister Mikayil Jabbarov at the 2nd Azerbaijan International Investment Forum, which is taking place in Baku on September 25.
According to the minister, the country's geographic location, developing transport infrastructure and long-term investment have turned Azerbaijan into a key economic and logistics node linking Central Asia, the South Caucasus, Turkey and Europe.
Jabbarov noted that investors want to be assured of the stability and sustainability of the obligations and conditions under which their investment decisions are made.
Azerbaijan's domestic political stability, policy consistency, relatively low government debt, substantial financial reserves and predictability of decisions provide a solid foundation for investors. This foundation is further strengthened by geopolitical changes in the region at a time when connectivity between Central Asia and the South Caucasus is becoming a reality.
The minister stressed that an important part of investment policy is the creation of predictable rules and their effective application. According to him, a special commission under the leadership of the deputy prime minister is accelerating strategic investment projects and coordinating the work of various government agencies.
Corridors and logistics
Jabbarov said that, despite having no access to the sea, Azerbaijan has become an international transport hub thanks to long-term policy and sustained investment. The East-West and North-South corridors passing through the country's territory operate in both directions.
Today the East-West and North-South corridors passing through our territory operate in both directions. The Baku International Sea Trade Port, the Baku-Tbilisi-Kars railway, our merchant fleet and the Caspian cargo fleet are just some elements of the Middle Corridor, which links Central Asia with the South Caucasus, Turkey and Europe via the Caspian Sea.
According to the minister, freight volumes are growing every year, and the potential is even greater. A 2023 World Bank assessment says that relevant investment and efficiency measures could triple trade flows along the Middle Corridor and halve transit time by 2030.
Jabbarov noted that construction of the transport corridor sections within Azerbaijan is largely complete, and that the main priority of the next stage will be improving the quality of services. According to him, the goal is to make routes through Azerbaijan not only safe in the current geopolitical situation, but also competitive in terms of cost and time.
The peace process and the economy
The minister also said that the peace process in the South Caucasus opens up new opportunities for the region's economic and investment potential. He recalled that in August 2025 the leaders of Azerbaijan and Armenia signed a joint declaration and initialled a peace agreement with the participation of the US president.
We seek to move from transport corridors to economic corridors, so our priority is to turn this into a diversified, export-oriented economy led by the private sector.
According to Jabbarov, from 2021 to 2025 Azerbaijan's non-oil and gas sector demonstrated average annual real growth of 6%, non-oil industry grew by 50%, and non-oil and gas exports almost doubled. In 2025 the non-oil and gas economy accounted for 71% of GDP, and this figure is expected to reach 82% by 2030.
The minister also noted the expansion of economic ties with Central Asia. In November 2025 Azerbaijan became a full participant in the format of the Consultative Meeting of the Heads of State of Central Asia.
For a company based in Azerbaijan, this means a production base linked to the markets of Central Asia, on the one hand, and to Turkey and Europe, on the other.
Source: trend.az
