CaucasusBUSINESS JOURNAL
Country Desk

Azerbaijan

Energy, corridors & the Caspian

Azerbaijan anchors the region’s energy economy — SOCAR, Shah Deniz and the Southern Gas Corridor — and sits at the hinge of the Middle Corridor trade route. This desk tracks Caucasus Business Journal’s Azerbaijan coverage: energy, investment, corridors and diplomacy.

Azerbaijan at a glance

Capital & currency
Baku · Azerbaijani manat (AZN)
Energy
Gas reaches 16 countries; corridor push toward 20 bcm to Europe
National champion
SOCAR — BTC pipeline operator since July 2026
Next wave
Absheron gas lined up for 2029 exports with TotalEnergies & ADNOC’s XRG
US ties
$8bn+ in commercial deals signed with US companies in 2026
Corridors
Middle Corridor · Southern Gas Corridor · TRIPP link to Nakhchivan

Latest Azerbaijan coverage

US Companies Sign Over $8 Billion in Commercial Deals With AzerbaijanCBJ Trade and Infrastructure Deskby CBJ Trade and Infrastructure Desk
SOCAR, TotalEnergies and ADNOC’s XRG Line Up Absheron Gas for 2029 ExportsCBJ Energy Deskby CBJ Energy Desk
Azerbaijan and Georgia Race October Deadline on Energy ContractsCBJ Energy Deskby CBJ Energy Desk
Azerbaijan Commits $152 Million to Nakhchivan as TRIPP-Linked Railway AdvancesCBJ Business Deskby CBJ Business Desk
SOCAR to Build AI and Data Centres as Azerbaijan Eyes Energy-to-Tech PivotCBJ Technology Deskby CBJ Technology Desk
Azerbaijan Pledges $5 Billion to Uzbekistan Tourism in Friendship Treaty PushCBJ Energy Transition Deskby CBJ Energy Transition Desk
More Azerbaijan coverage →

What we cover

SOCARSouthern Gas CorridorMiddle CorridorCaspianAzerbaijan investmentTRIPP

Azerbaijan’s economy: frequently asked questions

What drives Azerbaijan’s economy?

Oil and gas remain the anchor — led by SOCAR, the Shah Deniz field and the Southern Gas Corridor — with growing diversification into transit, logistics, tourism and technology, including SOCAR’s push into AI and data centres.

Where does Azerbaijani gas go?

Azerbaijani gas reaches 16 countries. Italy is the largest European buyer, with Germany and Austria added in 2026, and corridor partners are working toward roughly 20 bcm of deliveries to Europe.

What is SOCAR?

SOCAR is the State Oil Company of Azerbaijan Republic — the wholly state-owned national energy company, and since July 2026 the operator of the Baku-Tbilisi-Ceyhan oil pipeline.

Which trade corridors run through Azerbaijan?

Three: the Middle Corridor (Trans-Caspian route) for cargo between China and Europe, the Southern Gas Corridor for gas to Europe, and the emerging TRIPP link to Nakhchivan and Türkiye.

What is the outlook for Azerbaijan’s economy?

Slow but steady growth. Forecasts for 2026 fall in a narrow 1.5–2.5% band: the government projects 1.7% real GDP growth, ING 1.9% and the Asian Development Bank 2.0% (easing to 1.8% in 2027). Declining oil and gas output caps headline growth, so the non-oil economy, projected to grow 3.1% in 2026, is doing the lifting.

Is Azerbaijan’s non-oil economy growing?

Yes. In January–August 2026, real GDP grew 1.2%: non-oil and gas GDP rose 2.1% while the oil and gas sector contracted 0.8%. Fixed-capital investment was up 10% year on year.

How strong are Azerbaijan’s public finances?

The buffers are deep. Strategic foreign-currency reserves are about $91 billion, nearly 20 times the country’s $4.5 billion of external public debt (5.6% of GDP), and the foreign-trade surplus topped $10 billion in January–August 2026.

What does Azerbaijan’s 2027 budget assume?

The draft 2027 state budget assumes oil at $65 a barrel. It projects revenues of AZN 39.2 billion against spending of AZN 42.4 billion, a deficit of AZN 3.2 billion or 2.2% of GDP, with 60.5% of state revenue coming from outside oil and gas. Inflation was 5.7% in the first eight months of 2026 and is projected to ease to 5.3% on average in 2027.