Economy of Azerbaijan

Main article: Azerbaijan

GDP

Main article: GDP of Azerbaijan

Financial system

Inflation

2022: Inflation in November - 13.7%

Currency: manat

2015: Manat devaluation by 33% in 1 day

On Saturday morning, February 21, 2015, Azerbaijani officials said that the manat is stable, we control the process. They reminded of the gold and foreign exchange reserves of Azerbaijan - about $50 billion, commensurate with GDP. However, already in the middle of the day, a message from the Central Bank of Azerbaijan about the new course came: now $1 was sold for 1.05 manat, devaluation - by 33.5%. Prices for cars and electronics immediately rose. The price tags in grocery supermarkets have not changed, apparently by agreement with the authorities.

"At the first moment, of course, we panicked," says Rauf from Baku. What if it falls further? But two days later, the president spoke on TV and said that the course has changed, but that's it. "

Unlike Russia, only the state trades in oil and gas in Azerbaijan. The manat course depends entirely on the decision of the authorities. Why, as oil prices fell, did the authorities spend gold and foreign exchange reserves to maintain manat? There are many versions. The most real: in countries such as Azerbaijan, Kazakhstan (where tenge was devalued by 20% per day a year ago), their ideas about stability. Azerbaijan was waiting for the moment when it would be possible to adjust the course immediately and for a long time. What is this moment? Stabilization of the Russian ruble exchange rate.

The fact that the cheaper ruble is becoming a serious problem was told to me by the tomato producer and the hotel manager in Naftalan: Russia is in fourth place among importers of Azerbaijani products, but apparently in the first non-oil sector. Entire areas focused on growing vegetables and fruits for Russia were wary of the new season: with a cheap ruble, everything could rot in the fields. "Of course, our cost of roses will increase - fertilizers, for example, imported ones," Rashid Aliyev commented on the devaluation of the manat. "On the other hand, it will be easier for us to compete with imported colors." The rest of Russia's neighbors simultaneously or gradually, but have already devalued their currencies, adjusting them against the ruble, Azerbaijan simply remained the last to not do so. And after the devaluation, the loss of manual control, which passed from Father Ilham Aliyev, does not seem to threaten the country.

2005: Introduction of a new 1-to-1-dollar manat

After the introduction of a new manat in Azerbaijan in 2005, its exchange rate was equated to the US dollar. As oil prices rose, the manat rate grew. Starting from 2011 and February 2015, 0.78 manat was given for $1. This, of course, was an anomaly against the general background: in 2014, the Russian ruble against the dollar almost halved, and all other currencies of the post-Soviet countries - from 6% to 50%.

Key rate

Remittances of individuals

2022: The rise of money transfers from Russia 5 times in the 1st half of the year

80% of all transfers from individuals to Azerbaijan came from Russia. In the first half of 2022, out of $1.6 billion, Russians transferred $1.2 billion, which is five times more than in the same period last year. The growth occurred against the background of Russia's military special operation in Ukraine and a strong depreciation of the dollar against the Russian ruble.

Electronic Payment Systems

• Electronic payment systems in Azerbaijan

Mining

Gas Production and Export

• TANAP Trans-Anatolian gas pipeline

2025:1% increase in gas production to 50.92 bcm

In January 2026, the State Committee on Statistics of Azerbaijan published the final data on gas production for 2025. According to the report, the volume of natural gas production in the country amounted to 50.92 billion cubic meters, which is 1% higher than in 2024. The production of marketable gas prepared for supply to consumers reached 38.88 billion cubic meters, an increase of 0.7%.

Earlier, the Ministry power engineering specialists Azerbaijan released operational data, according to which gas production for 2025 reached 51.5 billion cubic meters, which means an increase of 1.8%. The main increase was provided by the Shahdeniz field, where 27.9 billion cubic meters of gas were produced. A significant contribution was made by the Azeri-Chirag-Guneshli group with a volume of 14.1 billion cubic meters. Production at the Absheron field amounted to 1.6 billion cubic meters. m. The state oil company SOCAR produced 7.9 billion cubic meters of gas.

Azerbaijan increased gas production to 50.92 billion cubic meters

The total export of Azerbaijani natural gas in 2025 remained at the level of 25.2 billion cubic meters. The key direction remained Europe, where 12.8 billion cubic meters were delivered. This volume is 0.8% less than in 2024. 9.6 billion cubic meters of gas were exported to Turkey, which is 3% lower than the previous year. Half of this volume (5.6 billion cubic meters) was delivered through the Trans-Anatolian gas pipeline TANAP.

Exports to Georgia decreased by 4.2%, to 2.3 billion cubic meters. Syria became a new direction of export supplies in 2025. Deliveries began in August 2025, and by the end of the year 0.5 billion cubic meters of natural gas were exported to this country. Thus, the structure of Azerbaijan's gas exports demonstrates stability in terms of total volume with changes in dynamics in certain areas and diversification of sales markets.^[1][2][3]

2024

Reduction of gas exports by 3.2% to 25 billion 772 million cubic meters

The State Customs Committee of Azerbaijan (SCC) recorded a decrease in gas exports by 3.2% to 25 billion 772 million cubic meters in 2024. Official data of the SCC were published in January 2025.

According to Finmarket, the share of gas exports in the total volume of foreign trade in Azerbaijan amounted to 31.66% against 40.35% in 2023. The CPF keeps records of export operations on the basis of customs declarations, which are drawn up after the actual sale of gas, and not at the time of its transportation.

Azerbaijan has reduced gas exports. Top 10 Buying Countries

Azerbaijan supplies gas to ten European states on the basis of various treaty mechanisms. Long-term contracts with fixed volumes of supplies have been concluded with Italy, Greece and Bulgaria. Agreements with Romania, Hungary, Serbia, Slovenia, Croatia and Slovakia provide for flexible terms for procurement volumes. A memorandum of cooperation was signed with North Macedonia.

Azerbaijani gas is transported to Turkey through two main pipelines - TANAP and the South Caucasus Pipeline Line (YKTM). Deliveries to Georgia are made through the YKTM and the Gazimagomed-Gazakh gas pipeline.

The system of accounting for export operations of the state customs committee of Azerbaijan is based on the principle of declaration after actual sales, which ensures the accuracy of statistical data on the volumes of gas sold.

The total value of exported gas in 2024 reached $8.407 billion, which demonstrates a decrease in the indicator by 38.5% compared to the previous period. Such dynamics reflect changes in the global energy market.^[4]

Gas exports to 8 European countries

In August 2024, Azerbaijan is negotiating to expand natural gas exports to at least three more countries. Europe The country already supplies gas to 8 European countries and has an agreement with this region to double exports by 2027.

For Italy, Azerbaijan has become the main supplier of oil and the second exporter of gas. For Baku, Italians are one of the main trading partners: trade between the countries reaches $16 billion.

2022: Gas Exports by Pipeline

2015: Gas production growth

At the beginning of 2015, oil reserves are estimated at 2 billion tons, gas - at 2.65 trillion cubic meters. m. Gas production in 2014 (almost all in deep-sea fields) - 29 billion cubic meters. m. Gas is used mainly for its own needs, 9 billion cubic meters are exported. m. Oil exports - 35-36 million tons per year^[5].

"As we move to deeper horizons, the share of gas increases," said Minister power engineering specialists Azerbaijan Natig Aliyev. "Today, our task is to maintain the level of oil production, increasing gas production. We expect an additional 16 billion cubic meters. m per year, for which the southern gas corridor is built. All this production has already been contracted: 6 billion cubic meters. m beret Turkey, 10 billion -. " Europe

According to the contract, 30% of the products went to Azerbaijan, 70% to investors. However, as the initial investments returned, the proportion changed: in 2006 they reached 80/20, and in 2015 it was already 90/10. However, the contract signed for 30 years will certainly be extended after this period.

Oil production

• SOCAR - SOCAR - State Oil Company of the Republic of Azerbaijan

2025: Azerbaijan reduced oil production by 4.7% to 27.7 million tons over the year

At the end of 2025, oil production with gas condensate in Azerbaijan decreased by 4.7%, amounting to 27.68 million tons. The data were published on January 20, 2026 by the Neftegaz news agency. The source of information is the materials of the State Committee on Statistics of the Republic of Azerbaijan,

The volume of production of marketable oil with condensate reached 27.62 million tons, which is 4.8% lower than in 2024. In December 2025, negative dynamics remained: monthly production amounted to 2.4 million tons, having decreased by 4% compared to December of the previous year.

Azerbaijan reduced oil production by 4.7 per year

Natural gas production in the country showed an increase of 1%, reaching 50.92 billion cubic meters. m per year. The volume of sales gas increased by 0.7% to 38.88 billion cubic meters. In December 2025, gas production amounted to 3.4 billion cubic meters. m, which is 5.6% less than the result of December 2024.

Data from the Statistics Committee confirms the Ministry's operational estimate, power engineering specialists Azerbaijan which previously reported a 4.7% reduction in oil production to 27.7 million tons and a 1.8% increase in gas production to 51.5 billion cubic meters. m.

The oil and gas sector remains the basis of the Azerbaijani economy, forming a significant part of the state budget revenues and providing the main export revenues, Neftegaz notes.

The Modern.az news agency reports that in the draft state budget of Azerbaijan for 2026, the revenues of the oil and gas sector amount to 42.6%, or 16.435 billion manats ($9.667 billion). The non-oil and gas sector accounts for 57.4%, or 22.174 billion manats ($13.043 billion) of the total projected revenues.

According to the project, compared to the forecast for 2025, the revenues of the oil and gas sector (including the transfer from the State Oil Fund) will decrease by 1.876 billion manats ($1.103 billion), or 10.2%. At the same time, revenues from the non-oil sector will grow by 2.129 billion manats ($1.252 billion), which corresponds to an increase of 10.6%.^[6][7]

2024: Production cut 3.6% to 29.1 million tonnes

2023: Azerbaijan provides about 40% of Israel's oil needs in exchange for weapons

As of November 2022, Azerbaijan provides about 40% of Israel's oil needs. In exchange, Azerbaijan receives billions of dollars in modern weapons from Israel.

According to the Stockholm International Peace Institute (SIPRI), Israel at that time supplies almost 70% of modern weapons to Azerbaijan. Azerbaijan's interests are also defended by pro-Israel lobbying groups in Washington.

2021

For 2020, Azerbaijan is the second largest oil producer in the Caspian Sea region. The country exports a large share of its oil through the Baku-Tbilisi-Ceyhan pipeline to the export oil export terminal in Turkey.

1994:13 oil companies led by BP qualify for main oil production in Azerbaijan

By the 1990s, old oil fields were noticeably depleted. In a record 1941, 23 million tons of oil were produced in Azerbaijan, and in 1993 - only 9 million tons.

The main reserves of Azerbaijan were concentrated in deep-sea fields: in Soviet times they were only explored.

In May 2007, the Daily Mail newspaper published a revealing article based on the testimony of a former senior BP employee responsible for securing lucrative contracts in Azerbaijan after the collapse of the Soviet Union.

They claimed millions were spent with corporate credit cards on champagne, drugs, prostitutes and rampant parties for local officials. They also claimed that MI-6 was well aware of these actions and encouraged them, working closely with BP to win the tender and "influence the political course of governments" in the region.

The article was withdrawn without explanation within hours of publication, presumably at the direct direction of the British government,^[8] resources has^[9] disappeared without^[10].

The official version sounds different:

"There

were no technologies, the necessary production facilities for the construction of the platforms themselves, underwater pipelines," Minister power engineering specialists Azerbaijan Natig Aliyev told Dengam in an interview. "But most importantly state , there was not a cent in the treasury. We then believed that the launch of the first stage requires from $7.5 billion. Who will give such money to a country that has a military conflict, internal instability? So Heydar Alievich personally met with investors, convinced that everything would be calm in Azerbaijan, guaranteed the protection of capital. "

According to the contract of September 20, 1994, 13 oil companies began to develop three deep-sea fields with their own funds, receiving in return participation in the production sharing. The development operator is BP as a participant with the maximum share. Unlike Russia, there was no privatization of the oil industry in Azerbaijan: only the State Oil Company of the Republic of Azerbaijan (SOCAR, better known in the Latin version of SOCAR) is producing at 56 old fields (35 onshore and 19 offshore) and BP on two new offshore ones.

"What is the distribution between them? A good question! - notes Natig Aliyev. "In 2014, we produced 43.3 million tons of oil: 35 million from two new deep-sea fields, 8 million from all the others combined." After that, it is clear why the Day of the Oilman in Azerbaijan is now celebrated on September 20. And in general, from the date of signing the "contract of the century," the new history of the country is counted

.

1890

Gold, silver, copper, molybdenum, zinc

2025: 11.3% increase in gold production to 2.97 tons, silver - by 14.5% to 3.65 tons

Gold production in Azerbaijan in 2025 amounted to 2.97 tons, which is 11.3% more than in 2024. Silver production in 2025 grew by 14.5% to 3.65 tons. This was reported in January 2026 by the State Statistics Committee. All extracted precious metals were transferred for processing. According to statistics, as of January 1, 2026, there were 43.5 kg of mined gold and 361.9 kg of silver in the warehouses of manufacturing companies. In Azerbaijan, the state-owned company AzerGold and the British Anglo Asian Mining PLC are engaged in the extraction of precious metals.^[11]

2024: Reduction in gold production by 3.5% (to 663.5 kg), silver - by 14% (to 184.9 kg)

Azerbaijan in 2024 reduced gold production by 3.5% compared to the previous year (to 663.5 kg), silver - by 14% (to 184.9 kg). Such data were provided by the State Committee on Statistics of the country in mid-January 2025.

It follows from these materials that as of January 1, 2025, 56 kg of gold and 334.9 kg of silver were mined at the warehouses of manufacturing companies in Azerbaijan. By the specified date, the state-owned company AzerGold and the British Anglo Asian Mining PLC were engaged in the extraction of precious metals.

2023

The British Anglo-Asian Mining plays an important role in mining in Azerbaijan. For more on the company, see Mohammad Reza Waziri

Energy carriers

2024: Reduction in petroleum products production

The volume of production of basic petroleum products in 2024 in Azerbaijan showed a decrease in all key categories:

• Motor gasoline - a decrease of 16.2% to 1.25 million tons.
• Diesel fuel - a reduction of 13.3% to 2.06 million tons.
• Jet fuel - a decrease of 4.6% to 590.2 thousand tons.
• Liquefied gas - a drop of 29.7% to 166.3 thousand tons.
• Petroleum coke - a decline of 23.5% to 183.3 thousand tons.
• Oil bitumen - a decrease of 4.6% to 264.9 thousand tons.

At the same time, some categories of petroleum products showed an increase in production. The production of fuel oil increased 4.9 times to 27.4 thousand tons, and the production of lubricating oils increased by 16.2% to 69.6 thousand tons.

As of January 1, 2025, stocks of finished products were stored at the warehouses of the Baku Oil Refinery: 16.3 thousand tons of gasoline, 15.6 thousand tons of jet fuel, 29.2 thousand tons of diesel fuel, 1.1 thousand tons of fuel oil, 6 thousand tons of lubricating oils, 10.2 thousand tons of oil bitumen and 14.9 thousand tons of petroleum coke.^[12]

2018: Petrol price below €1 per litre

Power

Black Sea Energy - Agreement on the export of electricity to the EU along the bottom of the Black Sea

• Black Sea Energy - a project of an underwater cable along the bottom of the Black Sea for the transmission of electricity from Azerbaijan.

2020: Low per capita energy consumption

and

Transport infrastructure

Azerbaijan Railways

Main article: Azerbaijan Railways

Middle corridor

Main article: Middle Corridor (Trans-Caspian International Transport Route)

Zangezur corridor

Main article: Zangezur corridor

North-South Corridor

In October 2022, Russia proposed to Azerbaijan and Iran to create a single logistics operator on the North-South international transport corridor according to the model of the existing OTLK ERA, which is owned on a parity basis by the railways of Russia, Kazakhstan and Belarus.

However, unlike the OTLK ERA route, the railway in the new direction is not developed enough, it is not even continuous. The development of routes is much more active in the message Russia - Azerbaijan than through the border of Azerbaijan with Iran, where the cargo flow does not exceed 500 thousand tons.

R&D

2020: R&D expenses - $352 million

ICT market

• Azerbaijan IT market
• Communication (Azerbaijan market)
• Digital economy of Azerbaijan

Foreign trade

2025

Azerbaijan's foreign trade turnover grew by 3.8% and reached $49.42 billion

At the end of 2025, Azerbaijan's foreign trade turnover reached $49.42 billion. This is 3.8%, or $1.81 billion, more than in the previous year, when the figure was $47.61 billion. The corresponding data at the end of January 2026 was published by the State Customs Committee of the republic.

In the total volume of foreign trade Azerbaijan turnover in 2025, exports accounted for $25.04 billion, or 50.67%. For comparison, a year earlier, exports provided $26.55 billion. At the same time, the contribution of imports is estimated at $24.38 billion, or 49.33%, against $21.06 billion in 2024. Thus, year-on-year exports decreased by 5.7%, while imports increased by 15.8%. The foreign trade surplus in 2025 amounted to about $663 million.

Azerbaijan ends the year with a foreign trade surplus of $663 million

If we consider exclusively the export segment, then in 2025 $11.45 billion, or 45.72%, fell on the public sector. The contribution of the private sector is estimated at $13.45 billion with a share of 53.69%. Approximately $148.46 million, or 0.59%, was provided by individuals. In the field of imports, the public sector showed a result of $8.28 billion, or 33.98%. The private sector provided $13.91 billion, or 57.06%, individuals - $2.18 billion, or 8.96%.

The published materials say that trade between Azerbaijan and Russia in 2025 reached $4.92 billion. This is 2.5% more compared to the previous year, when the indicator was at the level of $4.8 billion. At the same time, the export of Azerbaijani products to Russia in 2025 amounted to $1.18 billion, an increase of 0.5% on an annualized basis. Imports of goods from the Russian Federation rose to $3.74 billion, showing an increase of 3.2%. In general, Russia in 2025 ranked third among Azerbaijan's trading partners with a share of 9.96%. In the first place is Italy with 24%, in the second - Turkey with 11.58%.^[13]

Trade between Russia and Azerbaijan grew by 2.5% over the year and reached $4.92 billion

Trade between Azerbaijan and Russia amounted to $4.92 billion at the end of 2025, an increase of 2.5% to the level of 2024. Trade operations with Russia accounted for 9.96% of the total foreign trade turnover of Azerbaijan. It is reported by "Finmarket" with reference to the data of the State Customs Committee of Azerbaijan on January 21, 2026.

Russia is the third foreign trade partner of Azerbaijan after Italy and Turkey. The volume of exports of Azerbaijani products to the Russian Federation amounted to $1.18 billion with an increase of 0.5%. Imports from Russia reached $3.74 billion, an increase of 3.2%. The negative balance of Azerbaijan in trade with the Russian Federation for the reporting period amounted to $2.55 billion.

Annual trade turnover between Russia and Azerbaijan increased by 2.5%, amounting to 4.92 billion dollars

The Russian Federation ranks third among the countries to which Azerbaijani products are exported. Supplies to Russia accounted for 4.73% of Azerbaijani exports. In terms of imports, the Russian Federation ranks second among the countries from which Azerbaijan imports products. Russian supplies accounted for 15.33% of total imports. The largest supplier is China.

Russia is the largest buyer of Azerbaijani non-oil products. Its deliveries to Russia in 2025 amounted to $1.17 billion with an increase of 1%. Russia's share in Azerbaijan's non-oil exports reached 32.37%. Diversification of Azerbaijan's economy makes the non-oil sector increasingly significant.

Azerbaijan traditionally exports agricultural products to Russia. The main categories include fruits and vegetables that are in demand on the Russian market. Azerbaijani tomatoes, grenades, persimmons occupy stable niches. Viticulture provides supplies of grapes and wine.

In addition to fresh fruits and vegetables, Azerbaijan exports processed products. Tomato paste of Azerbaijani production is competitive in quality and price. Canned vegetables and fruits expand the range. Tea is grown in the southern regions of the country.

Light industry supplies textile products and products from it. The chemical industry exports polymers and fertilizers. Metallurgy provides supplies of aluminum and steel products. Mechanical engineering is developing more slowly than other sectors.^[14]%

2024

10th in imports of goods from Iran ($726.4 million)

At the end of 2024, Azerbaijan took 10th place in the import of goods from Iran. This is stated in the materials of the World Trade Organization (WTO), which TAdviser got acquainted with at the end of January 2026. Read more here

Trade turnover of Russia and Azerbaijan for the year increased by 10.1% and reached $4.8 billion

The State Customs Committee of Azerbaijan in January 2025 announced an increase in trade with Russia by 10.1% to $4.8 billion in 2024.

According to Sputnik, trade operations with Russia accounted for 10.08% of the total foreign trade turnover of Azerbaijan. According to this indicator, Russia ranked third among the republic's trading partners after Italy and Turkey.

The export of Azerbaijani products to Russia increased by 1.5% to $1.178 billion. Russia retained its leadership in importing non-oil products from Azerbaijan, the volume of which increased by 4.3% to $1.162 billion.

To tank

Imports of Russian products to Azerbaijan increased by 14.5% to $3.621 billion. Russia accounted for 17.2% of the total import of goods into the republic, which allowed it to become the second largest supplier.

In 2024, Russia ranked third among the countries to which Azerbaijani goods are exported, the report of the State Customs Committee of Azerbaijan says.

According to customs statistics, the growth of trade turnover between countries has shown positive dynamics in all key sectors. The supply of non-oil products increased especially noticeably, which indicates the diversification of trade relations.

The basis of trade is food products, products of mechanical engineering, chemical industry and agriculture. The expansion of trade and economic cooperation takes place within the framework of a strategic partnership between the two countries.

In the structure of bilateral trade, there is a tendency to increase the share of non-primary goods. This contributes to the development of industrial cooperation and the creation of joint ventures in various sectors of the economy.

Foreign trade indicators reflect the strengthening of economic ties between Russia and Azerbaijan, as well as the effectiveness of joint projects in the field of industry, transport and logistics.^[15]

Reducing foreign trade surplus by 3 times to $5.5 billion

In January 2025, the State Customs Committee of Azerbaijan reported that the foreign trade surplus in 2024 amounted to $5.5 billion, which is 3 times lower than the level of 2023. According to the results of 2024, the country's foreign trade turnover decreased by 7%, to $47.6. Exports amounted to $26.55 billion, a decrease of 21.7% compared to 2023. The main part of exports was the products of the oil and gas sector (87.36%). In 2024, Azerbaijan increased imports by 21.8%, to $21.06 billion.

Sharp rise in imports from China

Total exports China to, and Armenia Azerbaijan Georgia reached $1.1 billion in the first quarter of 2024 compared to $0.4 billion in the first quarter of 2019. This 150% growth is clearly not to meet any boom in domestic demand in the Caucasus. All these goods are sent to, Russia said chief economist IMF Robin Brooks in May 2024.

2023

Trade with Russia for the year increased by 17.5% and reached $4.3 billion

Trade turnover between Azerbaijan and Russia in 2023 increased by 17.5%, reaching $4.3 billion. This is evidenced by the data of the State Customs Committee of Azerbaijan, which TAdviser got acquainted with at the end of August 2024.

According to the committee, in 2023, the export of Azerbaijani products to Russia amounted to $1.196 billion, which is 22.7% more compared to 2022. Imports of Russian goods to Azerbaijan also showed growth, increasing by 15.6% and reaching $3.162 billion. Thus, Russia consolidated its third place among the largest trading partners of Azerbaijan, second only to Italy and Turkey. Trade with Russia amounted to 8.52% of the total foreign trade turnover of the republic.

Baku, Azerbaijan

According to TASS, the growth in trade is largely due to the implementation of large joint projects. Over the past three years, the volume of trade operations between Azerbaijan and Russia has doubled, which has become possible thanks to active industrial cooperation. For example, the opening of the Azermash JSC plant in the Gadzhigabul industrial quarter made it possible to establish the production of GAZ Group cars, and the Russian company Abrau-Durso successfully expanded its presence in the Azerbaijani market by launching wine production.

Investment projects also made a significant contribution to the growth of trade. In 2023, Russian companies invested about $295 million in the Azerbaijani economy, which significantly exceeded the previous years. In turn, Azerbaijani investments in Russia reached $33.3 million. This indicates the expansion of mutually beneficial cooperation between the two countries.

Cooperation in engineering and pharmaceutical spheres plays an important role in strengthening trade and economic ties. In particular, the Russian company R-Pharm has completed the construction of a plant for the production of drugs for the treatment of diabetes, and is also working to localize the production of insulins in Azerbaijan. These projects not only contribute to the growth of trade, but also create new jobs, which is of social importance for both countries.^[16]

Rising imports from Turkey and China

Unemployment

2020: Unemployment rate - 6.5%

Incomes of the population

2023: Minimum wage - $186

Tourism

2025: Tourist flow to Azerbaijan for the year decreased by 2.1% to 2.57 million people

Azerbaijan was visited by 2.57 million foreigners and stateless persons from 189 countries in 2025, which is 2.1% less than in 2024. Russia took first place among the source countries of tourist flow. This is evidenced by the data of the State Statistics Committee of Azerbaijan, which were published on January 23, 2026.

Among the arrivals, the distribution by country was as follows:

• Russia - 23.9%;
• Turkey - 17.7%;
• Iran - 8.1%;
• India - 6.5%;
• Georgia - 4.3%;
• Saudi Arabia - 4.1%;
• Kazakhstan - 4.0%;
• Pakistan - 3.5%;
• Israel - 2.7%;
• China - 2.5%;
• Uzbekistan - 2.4%;
• United Arab Emirates - 1.7%;
• Ukraine - 1.4%;
• Turkmenistan - 1.3%;
• Belarus, United Kingdom, Kuwait - 1.0% each;
• other countries - 12.9%.

Tourist flow to Azerbaijan decreased by 2.1% over the year

Males accounted for 67.0% of arrivals in Azerbaijan. Women - 33.0%. The predominance of male audiences is characteristic of business travel. Business tourism forms a significant part of the flow.

During the year, the number of arrivals from Israel increased 2.4 times. From Tajikistan - 1.6 times. From Jordan, the flow rose 49.9%. 41.7% more Chinese tourists arrived. Uzbekistan increased the flow by 34.3%. Kyrgyzstan - by 33.7%. The Netherlands - by 27.5%. Japan - by 25.8%. Kazakhstan - by 20.1%. Italy - by 13.7%. Pakistan - by 12.5%. Germany - by 11.1%.

The sharp increase in the Israeli flow is associated with the geopolitical situation in the region. Azerbaijan has become an alternative destination for Israeli tourists. The development of air traffic has facilitated access. The Central Asian republics have increased tourist flow due to the simplification of the visa regime.

The number of arrivals from the EU countries increased by 7% and amounted to 120.1 thousand people. European tourists are showing a growing interest in Transcaucasia. From the Gulf countries, the flow amounted to 414.8 thousand people with a decrease of 2.4%. Economic factors affected demand in this region.^[17]

2024: Tourist flow to Azerbaijan increased by 25.9% thanks to Russians

The number of foreign tourists visiting Azerbaijan in 2024 amounted to 2.627 million people, which is 25.9% more than in 2023. According to the State Committee on Statistics of the Republic in January 2025, the largest share among foreign guests was made up of Russian citizens.

According to Interfax, the Russians provided 27.8% of the total number of tourists in Azerbaijan, although in 2023 their share was 30%. Other leading countries in terms of the number of arrivals include Turkey (16.2%), India (9.3%), Iran (8%), Georgia (4.2%) and Saudi Arabia (3.7%). In total, citizens of 196 states visited the country. Among all arrivals, 67.3% were men, 32.7% were women.

To tank

Compared to 2023, the tourist flow from India increased 2.1 times, from Spain - 2 times, from South Korea and China - 1.9 times. Significant growth was recorded in other directions: the number of tourists from Kazakhstan increased by 48.6%, from Pakistan - by 46.7%, from the Philippines - by 44.3%, from Oman - by 41.6%, from Jordan - by 39.7%. The increase in the number of arrivals was also noted from Poland (37%), the USA (35.1%), Italy (35.1%), Germany (27.4%), Iran (27.2%) and several other countries.

In 2024, the number of tourists from the Persian Gulf countries increased by 21.4% and reached 425 thousand people, from the EU countries - by 34.9% (112.3 thousand), from the CIS - by 18.8% (979 thousand). Most travelers used air transport - 75.6% of the total, 23.1% crossed the border by train and car, 1.3% arrived by sea.

At the same time, the number of Azerbaijani citizens traveling abroad increased by 15.5% and amounted to 2.159 million people. The most popular destinations were Turkey (41% of the total number of trips), Russia (20.7%), Georgia (8.7%) and Iran (8.7%). The growth in the number of trips to Iran was 32%, to Russia - 11.6%, to Georgia - 11.5%, to Turkey - 8.5%.

According to the State Agency for Tourism of Azerbaijan, the total tourist flow was lower than the predicted 2.9-3 million people, and also lost 17% to the pre-pandemic level. However, steady growth in indicators over the past two years indicates a recovery in the industry.^[18]

2022:80% increase in tourist flow from Russia

The tourist flow from Russia Azerbaijan to in 2022 increased by about 80%, Azerbaijan President Ilham Aliyev said in November 2022.

2019

Revenues of international tourism - 8.5% of the total export of goods and services

How much Azerbaijan depends on tourism:% of the industry in GDP

2018

Economic history

2006: Diversification

"We can talk about the Azerbaijani development model," Deputy Minister of Economy and Industry of Azerbaijan Niazi Safarov said in an interview with Money in early 2015. Today, the share of the non-oil sector of GDP is 59%, according to the development concept, by 2020 this figure will rise to 80%. Over the past ten years, $160 billion has been invested in the country's economy, of which $105 billion has been invested in the non-oil sector. More than 500 new industrial enterprises have been created in the districts, of which 240 in 2014 alone. "

We went to the other end of Azerbaijan, to the Shamkir region, to see new enterprises. Since Soviet times, it has been considered agrarian. Actually, in 2015, when you drive along the highway, the greenhouses completely overloaded with polyethylene are around. Samir, the owner of one of these plantations of 2.5 hectares, says that local production has always focused on deliveries to Russia and now up to 90% are sent to the Russian Federation. Carnations were grown 10-15 years ago, but now they are sold poorly in Russia. Switched to tomatoes, cucumbers, salad. Samir has modern drip irrigation under nondescript polyethylene. Long rows of bushes - like a ruler. They remove three crops a year. Delivered to Moscow and St. Petersburg, from there is already being transported around the country. Samir claims that his tomatoes fall into both Auchan and Pyaterochka.

"Yes, this year we hope to sell more than in the past," Samir nods in response to my assumption about the benefits for Azerbaijani business of the Russian embargo on European products. Azerbaijanis historically have not only a vegetable business in Russia, but also a flower business. However, both vegetables and flowers for Russia have long been purchased mainly To Europe in. But in Azerbaijan it is not colder, and it is convenient to deliver to Moscow. The question is the introduction of new technologies that would allow us to compete with Europe. Director of the flower farm Azagro (trademark S. Buket) Rashid Aliyev clearly does not look like a collective farmer: a young man in an elegant blue suit. It takes us to a greenhouse where roses grow in mineral wool: Dutch technology. The equipment is imported, the staff studied in. Holland Even packaging is purchased in Europe. At the same time, the cost due to the climate is lower than in Holland. The company was launched in the fall of 2012. So far, the volumes have been completely eaten up by domestic consumption, but now they have increased: after March 8, according to Rashid, these flowers will begin to be supplied to Moscow. Asked how much was invested, who is the main shareholder, Rashid said with a smile that investments are only domestic, including soft government loans.

A quote from the current President of Azerbaijan Ilham Aliyev is displayed on the wall at the entrance to the Zeyam Tehnopark metal structures workshop. Translated: "We have chosen the right direction - development in the field of industrial production." The workshop opened a few months ago, while metal structures are being produced here, mainly for modern greenhouse complexes - the same flower farms. However, according to director Agil Asarov, the next phase of production will be boilers, generators, apparently, again for the needs of local agriculture. Agil Asarov was invited from Turkey, led the same production there. Actually, all the other enterprises that we looked at in the Shamkir region differed from each other only in the field of activity. The rest is like a carbon copy. The director is a young man in an expensive suit, knows foreign languages, studied or trained in the USA or Great Britain. On the wall are the mandatory words of the president, corresponding to the field of activity. For example, at the bakery, launched in November 2014, the quote: "Social orientation is the main principle of our economy," and the technologist is Dutch, he used to work in Poland, Saudi Arabia.

Sumgait, located near Baku, has been the center of the Azerbaijani petrochemical industry since the 1950s. Today, the Sumgait chemical industry is run by Azerichimia, a SOCAR division. The head of the Azerikhimia design bureau, Rza Rzaev, demonstrates polyethylene production plants: 95% is exported.

Unlike Azerichimia, the Sumgait Technology Park (STP) is built at the expense of private investors. 13 factories have been erected from scratch on a giant territory - this is 3 thousand workplaces. Here, under its own brand STP, payment terminals, monitors, various sensors, controllers are produced. I am proudly shown the high-voltage cable factory. Previously, BP imported the cable, and today it buys Sumgait products not only for Azerbaijani projects, but also for divisions in other countries. The most interesting thing is the precision mechanics plant. "The equipment that stands here can be compared with 3D printers of micron accuracy: on these machines you can make any parts for any equipment," says Jamil Gasymov, head of the STP business development department. Now parts are being made for oil and gas equipment.

Old-timers recall that, while still the first secretary of the Central Committee of the AzSSR, Heydar Aliyev spoke about diversification - the development of agriculture. In particular, about the transformation of viticulture and winemaking into the second most important industry after oil. The industry developed before the famous Gorbachev anti-alcohol campaign - most of the vineyards were cut down in Azerbaijan. Today, winemaking is only being revived. According to Alesker, director of the St. George winery, installed here under the tsar, the oldest laying of cognac alcohol was made by them only seven years ago. In the meantime, he demonstrates a new line for bottling vodka: it is more popular in Azerbaijan than cognac.

In one of the conversations with local officials, it was said that the main idea of ​ ​ the revival of Azerbaijan is to create everything again using modern technologies. This is most clearly seen in the tourism sector: they immediately invited foreign managers with foreign teams of service personnel, from cooks to waiters. At the luxury Excelsior Hotel in Shamkir, part of the team are Filipinos who previously worked in Dubai and Saudi Arabia. Basically, foreign specialists in Azerbaijan are from Turkey. Languages ​ ​ are close, but the task of foreigners is not only to put business at the initial stage, but also to train local ones, Timur Choshkun, one of the Turkish expats, manager of the Azerbaijani holding Synergy Group in Shamkir, explains to me.

The average salary in Azerbaijan (before devaluation) is about $600. In Kazakhstan, for example, it is somewhat higher, but there I met many janitors and builders from Uzbekistan and Kyrgyzstan. There are no guest workers in Azerbaijan: as I understand it, the arrival of only highly qualified specialists is welcome.

"Chinar" in Naftalan is now called not a sanatorium, but a hotel. In fact, this is precisely a sanatorium: they are treated with famous oil baths. The head physician Khurshad Namazalieva meets us in a white robe draped over our shoulders, as was customary in old Soviet sanatoriums. This analogies with the past end: a full-fledged resort hotel, as in Turkey. "Naftalan as a resort began in the 1930s, since the 1950s - as an all-Union health resort," says Namazalieva. "We have no problems with the medical component of the sanatorium, but there is not enough experience in organizing hotel service, business manager and managers in directions - from Turkey." Almost everywhere in Azerbaijan, inscriptions are duplicated only in English, and here in Russian: a noticeable proportion of patients are from Russia or the former USSR. "Chinar" - state, was closed in 1991 and opened after reconstruction in 2011. The rest of the sanatoriums of Naftalan (there are a dozen of them) do not work: for 20 years refugees from Karabakh lived in them, only recently they were resettled in specially built microdistricts. Here I received an answer to the question why most of the objects I saw were built recently: the first years of the oil rise, the country solved the problems of 1.2 million refugees. In total, there are about 9 million inhabitants in Azerbaijan.

AzSSR

In the USSR there were only two republics, invariably donor, - the RSFSR and the AzSSR. "Soviet Azerbaijan is walking wide!" - noted once after visiting the republic Brezhnev.

Alcohol market

Minimum age to purchase alcoholic beverages

Agriculture

2025: Azerbaijan increases agricultural production to $8.3 billion

The volume of agricultural production in Azerbaijan amounted to 14.19 billion manats (about $8.3 billion) in 2025. The increase to the level of 2024 reached 0.9%. It is reported by "Finmarket" with reference to the data of the State Committee for Statistics of Azerbaijan on January 20, 2026.

The volume of livestock production amounted to 7.44 billion manats (about $4.35 billion) with an increase of 0.3%. Crop production provided an output of 6.75 billion manats (about $3.95 billion) with an increase of 1.5%. The crop industry has shown more dynamic development compared to animal husbandry.

Azerbaijan's agricultural production reaches $8.3 billion

The country produced 659.2 thousand tons of meat at the level of 2024. Milk received 2.31 million tons with an increase of 0.3%. Egg production reached 2.34 billion units, an increase of 1.8%. Wool output decreased by 1.3% to 14.6 thousand tons.

As of January 1, 2026, there were 6.76 million heads of sheep and goats in the country. The number of cattle amounted to 2.44 million heads. Of these, 1.21 million heads of cows and buffaloes. Cows and buffaloes make up 49.6% of the cattle population.

Poultry enterprises produced 85.1 thousand tons of poultry meat in live weight in 2025. The production of eggs exceeded 1.19 billion pieces. In total, the number of birds in these farms amounted to 12.58 million heads. Average productivity from a single laying bed reached 246 eggs.

• grain and leguminous crops (including corn) - 3.38 million tons (an increase of 3%);
• vegetables - 1.77 million tons (a decrease of 3.8%);
• fruits and berries - 1.39 million tons (an increase of 5.8%);
• potatoes - 924.7 thousand tons (a decrease of 0.3%);
• melons - 459 thousand tons (a decrease of 6.4%);
• cotton - 363.2 thousand tons (an increase of 16.8%);
• sugar beets - 328.5 thousand tons (an increase of 13.2%);
• grapes - 210.9 thousand tons (an increase of 2.8%);
• sunflower - 31.8 thousand tons (an increase of 1.9%);
• tobacco - 8.4 thousand tons (an increase of 28.9%);
• green tea - 1.2 thousand tons (an increase of 12.7%).

Cotton posted a strong 16.8% increase. Azerbaijan is restoring the traditional cotton industry. Sugar beets increased by 13.2%, providing raw materials to the local sugar industry. Tobacco showed a maximum increase of 28.9%.^[19]

2019: Low use of pesticides in agriculture

Consumption

Meat

2023: Poultry meat is the most consumed type of meat

2019: Poultry meat is the most consumed type of meat

Notes