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Baku, Tashkent turning political friendship into economic power

Baku, Tashkent turning political friendship into economic power

azernews.az 23.08.2026 12:01 13 views
The Azerbaijan-Uzbekistan relationship has spent years accumulating political capital, and now the two countries are being challenged to turn that capital into economic power.

The Azerbaijan-Uzbekistan relationship has spent years accumulating political capital, and now the two countries are being challenged to turn that capital into economic power. Perhaps that is the real test facing President Ilham Aliyev’s 23–24 August state visit to Uzbekistan. Analysed politically and economically, the relationship is already unusually strong, as indeed, Baku and Tashkent describe one another as brotherly allies, supported by deep historical and cultural links.

Presidents of both countries maintain frequent contact, while a growing network of bilateral agreements has transformed political goodwill into formal strategic commitments. But the most interesting development is happening beneath the diplomatic headlines. As mentioned above, the economic relationship is moving faster than politics, with trade obviously rising sharply.

For example, investment structures are being created, companies are expanding across borders, transport flows are increasing, manufacturing partnerships are producing vehicles, and Uzbek businesses are participating in Azerbaijan’s reconstruction programme. In other words, the relationship is beginning to acquire an economic life of its own. Certainly, that matters because the strategic value of the partnership will ultimately depend on whether it can move beyond state-to-state diplomacy.

Moreover, in all these successes, not only words speak but numbers, which suggest tremendous momentum. Let's take a look at how bilateral trade climbed to $795 million in 2025, more than tripling from the previous year. During the first five months of 2026, trade was another 33 per cent higher year on year.

Besides, more than 130 Uzbek companies are operating in Azerbaijan, and the Azerbaijan-Uzbekistan Investment Company, established in 2023, provides another institutional channel for financing projects. We can admit that numbers speak volumes, but perhaps the next question is whether this momentum can be scaled. When deeply analysing, we can see that manufacturing offers an obvious opportunity.

For instance, cooperation through Azermash with Uzbek partners has already produced more than 10,000 Chevrolet vehicles and over 300 Isuzu vehicles, through which it demonstrates that bilateral economic relations are capable of moving beyond the traditional exchange of commodities. And the same logic applies to agriculture. Uzbekistan’s involvement in the 100-hectare “Friendship Garden” project in Fuzuli illustrates how economic cooperation is being connected to Azerbaijan’s reconstruction agenda.

Extract — continue reading at the source.

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