President Ilham Aliyev's UAE Visit Marks Milestone In Bilateral Relations

(MENAFN- AzerNews) Nazrin Abdul Read more

On January 13, 2025, President Ilham Aliyev of Azerbaijan arrived in the United Arab Emirates (UAE) for a pivotal business visit at the invitation of President sheikh Mohammed bin Zayed Al Nahyan. The visit underscores Azerbaijan's significant role in global sustainability efforts, as the country joins other selected nations, including leaders from the Turkic world, at the Abu Dhabi Sustainability Week (ADSW) summit. This event gathers global leaders to discuss vital issues of sustainability and climate action.

Besides, President Ilham Aliyev's participation highlights Azerbaijan's growing influence in regional and international affairs, reflecting his multifaceted diplomatic approach and Azerbaijan's role as an important partner for the UAE.

Throughout the visit, President Ilham Aliyev's strategic politics and the strengthened ties between Azerbaijan and the UAE were emphasized, particularly in sectors such as renewable energy and regional cooperation.

In a meeting held one-on-one, the UAE President fondly recalled his official visit to Azerbaijan in 2024 and his trip during COP29, along with the meetings and discussions he had with the Azerbaijani President during these visits. In his turn, President Ilham Aliyev praised the excellent level of political relations and pointed to the expanding economic and trade ties. He underscored that the UAE's investments in Azerbaijan's renewable energy sector serve as a testament to the friendship and partnership between the two countries.

It is a fact that the economic relationship between Azerbaijan and the United Arab Emirates (UAE) continues to grow, and it is marked by strategic collaboration in diverse sectors, with green energy emerging as a key area of cooperation. The diplomatic and economic ties between the two nations have evolved over the years, underpinned by shared interests in sustainability, energy security, and economic development.

Strengthening economic ties: Azerbaijan and the UAE's growing partnership

The economic relationship between Azerbaijan and the United Arab Emirates (UAE) has continued to thrive in recent years, characterized by a strategic collaboration across various sectors, with green energy standing out as a key area of cooperation. The diplomatic and economic ties between the two nations have evolved significantly, supported by shared interests in sustainability, energy security, and economic development.

Azerbaijan and the UAE continue to enhance their relationship, grounded in mutual friendship and respect. Their partnership is founded on shared values and a strong foundation of trust, aligning their common objectives and fostering an environment conducive to long-term collaboration. This growing alliance has not only strengthened bilateral trade but also positioned both countries as key players in the global push for sustainable energy solutions and economic transformation.

As their relationship progresses, Azerbaijan and the UAE are focusing on new opportunities for joint ventures, particularly in the realm of green energy. Their commitment to further enhancing their strategic partnership serves as a foundation for future growth and deeper collaboration in various sectors, ensuring both nations' prosperous and sustainable future.

Green energy: A cornerstone of strategic partnership

Azerbaijan's energy sector is central to the country's economic relations with the UAE. While Azerbaijan has long been a key player in Europe's energy security due to its vast oil and gas reserves, it is increasingly focusing on diversifying its energy portfolio by investing in renewable energy sources, particularly green energy. This strategic shift aligns with Azerbaijan's goal of becoming a significant electricity supplier, especially from renewable sources, by harnessing its renewable energy potential.

Azerbaijan's Caspian Sea region holds substantial wind energy potential, estimated at 157 gigawatts. The government has set a target for renewable energy to account for 30-40 percent of the country's electricity production by 2030. In line with these objectives, Azerbaijan and the UAE have strengthened their cooperation, particularly in solar energy projects. The Garadagh Solar Power Plant, the largest of its kind in the Caspian region and the CIS, is a prime example of this collaboration. The plant, which was inaugurated in October 2024, was established as part of a broader agreement between Azerbaijan's Ministry of Energy, AzerEnergy OJSC, and the UAE's Masdar company.

The foundation for the Garadagh Solar Power Plant was laid in 2022, with the participation of President Ilham Aliyev, underscoring the importance of this project. During the opening ceremony, President Aliyev highlighted the high level of bilateral relations and expressed optimism about the future of Azerbaijan-UAE cooperation in energy, trade, tourism, and other sectors. The successful completion of the Garadagh project reflects the shared commitment to green energy and sustainable development, and it is expected to provide a substantial contribution to Azerbaijan's renewable energy targets.

Expanding trade and economic relations

Beyond energy, Azerbaijan and the UAE have made significant strides in expanding economic and trade relations. A joint intergovernmental commission on economic, trade, and technical cooperation has been instrumental in fostering business ties, with eight meetings held to date. Both governments are focused on strengthening cooperation between small and medium-sized enterprises (SMEs) and increasing trade volumes.

The volume of trade turnover between the two countries has steadily increased. In 2022, trade between Azerbaijan and the UAE reached 94.62 million USD, a reflection of the growing commercial partnership. This upward trend in trade is complemented by an increase in tourism, with the number of UAE citizens visiting Azerbaijan more than doubling in 2022. Azerbaijan's attractiveness as a tourist destination is contributing to the deepening economic ties, alongside the flourishing energy and trade sectors.

Looking ahead, the potential for further strengthening Azerbaijan-UAE relations remains significant. As both nations prioritize green energy and sustainability, opportunities for collaboration in other renewable energy sectors, such as wind and hydro, are ripe for exploration. Furthermore, the ongoing developments in the energy sector are likely to create a more diversified and sustainable economic relationship, benefiting both countries in the long term.

In addition to energy and trade, both countries are keen on enhancing bilateral cooperation in regional and global contexts. Azerbaijan's role in global energy security and the UAE's leadership in sustainability initiatives, such as the Abu Dhabi Sustainability Week, provides a platform for continued collaboration on international matters.

The UAE's role as a key investor in Azerbaijan's renewable energy projects and its involvement in the development of Azerbaijan's energy infrastructure are poised to make a significant impact on the region's energy landscape. As the UAE continues to champion sustainability and innovation, its partnership with Azerbaijan will play a crucial role in shaping the future of both nations, contributing to regional stability and global sustainability goals.

In conclusion, the economic relations between Azerbaijan and the UAE are on a promising trajectory. The cooperation between the two countries in green energy, trade, and tourism serves as a solid foundation for future development, with mutual benefits anticipated across various sectors. Both nations are committed to working together to ensure a prosperous and sustainable future, marking an exciting phase in their growing strategic partnership.

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