The CEPA signed between the two countries aims to expand trade beyond $4 billion in five years
UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan arrived in the Karabakh region of Azerbaijan on an official visit, marking a significant milestone in the growing strategic partnership between the two nations.
Upon arrival at Fuzuli International Airport, President Sheikh Mohamed was warmly received by Azerbaijani President Ilham Aliyev and other senior officials.
(Photo Credit: WAM)
The UAE delegation accompanying His Highness included key figures such as H.H. Sheikh Hamdan bin Mohamed bin Zayed Al Nahyan, Deputy Chairman of the Presidential Court for Special Affairs, and Sheikh Mohammed bin Hamad bin Tahnoun Al Nahyan, Adviser to the UAE President, alongside several cabinet ministers and senior officials.
This visit comes amid a period of enhanced bilateral cooperation underscored by recent agreements and consistent diplomatic engagement.
(Photo Credit: WAM)
Since Azerbaijan and the UAE established diplomatic relations in 1992—shortly after the UAE recognized Azerbaijan’s independence on December 26, 1991—the relationship has grown both politically and economically, elevating to a strategic partnership level.
Recent trade figures and economic cooperation
A key highlight in bilateral relations is the rapid growth in non-oil trade. According to ministry figures for 2024, bilateral non-oil trade between Azerbaijan and the UAE reached approximately $2.24 billion, representing about half of Azerbaijan’s total trade with the Gulf Cooperation Council (GCC) countries. The UAE stands as Azerbaijan’s largest GCC trade partner and a leading Arab investor, with cumulative investments exceeding $1 billion, especially in sectors like renewable energy, logistics, tourism, and construction.
(Photo Credit: WAM)
The nations solidified their economic ties further by signing a Comprehensive Economic Partnership Agreement (CEPA) in July 2025 in Abu Dhabi, attended by the UAE Minister of Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi and Azerbaijani Minister of Economy Mikayil Jabbarov. The agreement aims to expand two-way trade beyond $4 billion within five years by removing customs duties on 97 percent of tariff lines, streamlining customs procedures, and encouraging private sector investment. It also includes cooperation on renewable energy projects, logistics corridor development, and agricultural technologies.
(Photo Credit: WAM)
The UAE figures anticipate a contribution of about $680 million to its Gross Domestic Product (GDP) by 2031 from this partnership, while Azerbaijan expects an economic boost of around $300 million. These figures signify the importance of bilateral ties in fostering economic growth and diversification for both nations.