Economic bridge from the South Caucasus to the Middle East

On January 26, Azerbaijani President Ilham Aliyev received Israeli Foreign Minister Gideon Saar. It should be noted that the presidents of Azerbaijan and Israel recently discussed bilateral cooperation opportunities in the economic, trade and energy sectors in Davos. A number of issues were touched upon in accordance with this cooperation agenda at yesterday's meeting. Deepening cooperation in the fields of energy, artificial intelligence and agriculture was noted.

It is no coincidence that Saar was accompanied by more than 40 large Israeli business representatives. They represent giant companies operating in the water and agricultural sectors, cybersecurity, engineering, finance and healthcare. On the other hand, there was also an emphasis on the Azerbaijan-Israel business forum to be held in our country. This forum will contribute to the development of economic and trade relations between our countries. These summits and forums aim to increase mutual investments by creating a basis for future cooperation.

It should be noted that the briefing held by Azerbaijani Foreign Minister Jeyhun Bayramov and his Israeli counterpart Gideon Saar was also quite rich in terms of economic prospects. Considering that currently 130 commercial entities with Israeli investment operate in Azerbaijan, and the value of mutual investments is approximately $600 million.

The trade turnover between Azerbaijan and Israel is $78 million. In January-November, Azerbaijan's non-oil exports to Israel increased by 27 percent, from $16 million in the same period in 2024 to about $20.3 million.

The visit of the Israeli Foreign Minister to our country is also quite significant within the framework of the Azerbaijan-Israel business forum. It should be noted that a Memorandum of Understanding was signed between the National Confederation of Entrepreneurs (Employers) Organizations of Azerbaijan (ASK) and the Israeli Manufacturers Association (MAI) at the forum. The memorandum envisages the organization of business mission visits between the two countries, studies on mutual investments, holding B2B meetings, developing cooperation opportunities between the private sector and implementing exchange of experience, and other areas of cooperation.

In relations, the energy sector is of greater strategic importance. Azerbaijani oil is supplied to Israel through the Turkey-Georgia-Azerbaijan pipeline. A clear example of this is the acquisition by the State Oil Company of Azerbaijan of a 10 percent stake in Israel's Tamar gas field in the Mediterranean Sea last year. This field provides about 60-70 percent of Israel's electricity. SOCAR already holds gas exploration licenses for blocks in the Israeli Exclusive Economic Zone, together with BP and the Israeli company NewMed Energy. These steps include Azerbaijan in energy projects in the Mediterranean and create an opportunity to work on new export routes in the region. Azerbaijani oil is also regularly transported to Israel through the BTC pipeline.

Energy cooperation is also proving itself in other areas. For example, both sides plan to prioritize new projects in the field of renewable energy (solar, wind) and sustainable technologies in the future.

The strategic partnership is not limited to energy - close ties are also being established in the field of high technologies and startups. A cooperation agreement worth 15 million US dollars has been signed between the Azerbaijan Investment Company and the Israeli investment platform “OurCrowd”. This agreement aims to attract direct investment to Azerbaijani startups and ensure their rapid development. The target areas of the project include energy, health technologies (healthtech), agricultural technologies (agtech), food technologies, educational technologies and cybersecurity.

Through this platform, innovative young Azerbaijani companies will receive mentorship and financial support from experienced Israeli investors, increasing technology transfer in our country's economy.

Another important step in the field of industry and technology is the agreement signed between the Innovation and Digital Development Agency and the Israeli Space Industry. Within the framework of this memorandum, a High Technology Center will be established in Azerbaijan, and joint projects will be implemented in artificial intelligence, quantum technologies, sustainable space and energy technologies. Such initiatives provide Azerbaijan with the knowledge and technologies of Israel, which is considered a pioneer in the fields of industry 4.0, "smart cities" and cybersecurity.

Another pillar of economic relations is undoubtedly tourism. In 2025, the number of tourists from Israel to Azerbaijan more than doubled compared to the previous year. The increase in direct flight routes and the simplification of visas are among the factors contributing to this increase. Israeli tourists are discovering Azerbaijan as a new and attractive destination. They are interested in visiting the historical sites of Baku, the regions of our country, and especially the Red Settlement, a settlement of Mountain Jews in the Guba region. At the same time, the number of visits of Azerbaijani tourists to Israeli cities such as Tel Aviv and Haifa is increasing. Strengthening tourism exchange not only deepens friendship and mutual understanding between peoples, but also brings economic benefits.

Vugar BAYRAMOV,
Deputy of the Milli Majlis

A long-term and stable partnership has been formed between Azerbaijan and Israel. Given that the relations between the two countries are based on solid foundations, this cooperation is gradually strengthening, covering both the economy and energy, as well as a number of other areas.

One of the most important areas is undoubtedly cooperation in the economic and energy sectors. There are quite serious opportunities for cooperation in the energy sector. As Mr. President noted in his speech at the Davos Economic Forum, Azerbaijan may experience a “second oil boom”. We are talking about increasing oil production, and of course, Israel also has a demand in this area, especially for Azerbaijani oil.

In this regard, there are real opportunities for strengthening cooperation in the energy sector between the countries and for more extensive exports of Azerbaijani energy products to Israel. The potential in the economic sector is also quite large. On the one hand, it is important to develop cooperation in the agricultural sector and more actively use Israel's advanced experience. On the other hand, Israel is one of the important partners in terms of technology and innovation transfer. Especially considering that Israel is one of the leading countries in the world in this field.

In this regard, there are wider opportunities for using the transfer of Israeli technologies in the industrialization process. All these factors lead to the strengthening of economic relations between the countries. At the same time, Israel can become one of the important markets for exporting a number of Azerbaijani products.

The potential for strengthening economic and general cooperation between the two countries is quite large. The current situation shows that mutual visits, discussions, agreements reached and signed documents will serve to further deepen Azerbaijani-Israeli economic relations.

Nurlan ABDALOV
XQ