Economic relations between Azerbaijan and Türkiye have developed dynamically since the early years of Azerbaijan’s independence, becoming one of the key pillars of the strategic partnership between the two countries. The legal foundation of bilateral economic relations is the “Agreement on Trade and Economic Cooperation,” signed on 1 November 1992 and entering into force on 23 January 1993. In the subsequent period, a number of important steps were taken to expand economic cooperation, identify new areas of partnership, and further strengthen the legal and contractual framework.
The institutional mechanisms of bilateral economic cooperation include the Azerbaijan–Türkiye High-Level Strategic Cooperation Council, the Intergovernmental Joint Economic Commission, and other joint mechanisms operating in various fields. Within these frameworks, regular efforts are undertaken to advance cooperation in trade and investment, industry, energy, transport, logistics, and other areas. The adoption of a new 110-point Action Plan at the 12th meeting of the Commission, held in Baku on 22 December 2025, was another important step aimed at further expanding the bilateral economic agenda.
Investment cooperation is one of the most important areas of the Azerbaijan–Türkiye economic partnership. Between 1995 and 2025, the total volume of foreign direct investment from Türkiye to Azerbaijan reached USD 18.4 billion. Of this amount, USD 13.6 billion was directed to the oil and gas sector, while USD 4.8 billion was invested in the non-oil sector. Turkish companies operate extensively across various sectors of Azerbaijan’s economy, including energy, industry, telecommunications, finance, construction, transport, food, textiles, and healthcare.
The scale of Azerbaijan’s investments in the Turkish economy also demonstrates the depth of bilateral economic relations. Between 1995 and 2025, the total volume of foreign direct investment from Azerbaijan to Türkiye amounted to USD 21.1 billion. Currently, nearly 2,000 companies with Azerbaijani capital operate in Türkiye. One of the largest projects undertaken by Azerbaijani capital in Türkiye is the STAR Refinery, established by SOCAR in the Aliağa district of İzmir with a capital investment of USD 6.3 billion. The activities of Azerbaijani investors in Türkiye extend beyond the energy sector to include industry, petrochemicals, logistics, finance, and other areas.
Trade relations between the two countries have also continued to expand steadily. Türkiye is one of Azerbaijan’s principal trading partners in terms of both import and export operations, as well as overall foreign trade turnover. In 2025, bilateral trade turnover between Azerbaijan and Türkiye amounted to USD 5.72 billion. During the same period, Azerbaijan’s exports to Türkiye totaled USD 3.38 billion, while imports from Türkiye amounted to USD 2.34 billion. The leaders of the two countries have identified increasing bilateral trade turnover to USD 15 billion as one of their strategic objectives for the coming period.
Another important indicator of economic relations is the number of Turkish companies operating in Azerbaijan. Currently, 6,791 Turkish companies are registered in Azerbaijan. Turkish companies are also actively involved in the reconstruction and sustainable development of the territories liberated from occupation. At present, 111 projects are being implemented in these territories with the participation of Turkish companies.
The Preferential Trade Agreement is of particular importance for further expanding trade relations. Under the Agreement, signed in 2020 and entering into force on 1 March 2021, a preferential trade regime was initially introduced for 15 products. As a result of amendments adopted in 2023–2024, the list of products covered by preferential treatment was expanded to 30 products. The implementation of this mechanism creates additional opportunities for diversifying bilateral trade and expanding cooperation in the non-oil sector.
One of the strategically important areas of the Azerbaijan–Türkiye economic partnership is the implementation of regional projects in the energy and transport infrastructure sectors. With the initiative, participation, and support of the two countries, internationally significant projects such as the Baku–Tbilisi–Ceyhan (BTC), Baku–Tbilisi–Erzurum (BTE), Baku–Tbilisi–Kars (BTK), and Trans-Anatolian Natural Gas Pipeline (TANAP) have been successfully implemented.
The BTC and BTE projects have expanded Azerbaijan’s access to global energy markets while also making a significant contribution to strengthening Türkiye’s position as a regional energy transit and supply hub. TANAP is of strategic importance for the transportation of Azerbaijani natural gas to the Turkish and European markets. The project contributes to strengthening Europe’s energy security, diversifying energy supply sources, and advancing regional energy cooperation.
In the transport sector, the Baku–Tbilisi–Kars railway is an important regional infrastructure project connecting Azerbaijan, Georgia, and Türkiye. The BTK railway facilitates the expansion of international freight and passenger transportation, enhances transit opportunities, and contributes to deeper regional economic integration. At the same time, as an important component of the Middle Corridor connecting Europe and Asia, the project plays a significant role in enhancing the transit and logistics potential of both Azerbaijan and Türkiye.
Overall, economic relations between Azerbaijan and Türkiye have evolved into a multifaceted and strategic partnership encompassing mutual investments, trade, energy, transport, logistics, industry, and other areas. The high level of mutual investment, expanding trade relations, major regional projects implemented jointly by the two countries, and existing institutional cooperation mechanisms provide a strong foundation for more effective integration of the economic potential of Azerbaijan and Türkiye. In this regard, significant opportunities exist for further expanding and deepening Azerbaijan–Türkiye economic cooperation through new areas of partnership in the coming period.
In this regard, information on local producers in the Republic of Azerbaijan in 2025, including their contact details and the products they manufacture, can be accessed via the provided link.