UK sees opportunities to establish joint ventures with Azerbaijan

There are opportunities for the United Kingdom and Azerbaijan to establish joint ventures, Dr. Ilona Karpanos, Representative for International Trade and Economic Development at the Cambridge Chamber of Commerce, said.

According to Report, Karpanos made the remarks at the Second Azerbaijan International Investment Forum (AIIF 2026) in Baku.

She said Azerbaijan was currently going through a particularly exciting period and that cooperation should go beyond simply increasing exports.

"I think we need to focus more on building strategic partnerships through broader networks. Chambers of commerce and other regional networks help bridge the gap between our two countries," she said.

Karpanos noted that Cambridge has extensive experience in developing international partnerships involving universities, research institutions, joint ventures and businesses.

She said regional networks should connect businesses more closely with decision-makers at universities, business centers and in the life sciences sector, while also helping attract investors.

"In my experience and view, investment should flow both ways. We need to identify what our businesses have, what capabilities they possess and how these can match demand in particular markets," she said.

Karpanos said she would lead a UK delegation to Azerbaijan next week for the ADEX exhibition, bringing together representatives from the defense, security and cybersecurity sectors.

"A total of 16 businesses have joined the delegation, and interestingly, some of them are from life sciences and supply sectors rather than strictly defense and security. So the interest and appetite are there. We simply need to identify the right partners and the right joint ventures and bring them together," she said.

Karpanos also highlighted Azerbaijan's geographical position and economic diversification as important advantages for British businesses.

"Azerbaijan has two main strengths. The first is its geographical location, its proximity to Europe and Asia, and easy access to important regional and domestic markets. The second is diversification," she said.

She added that Azerbaijan's efforts to move beyond hydrocarbons and diversify its economy were opening new sectors in which UK businesses have particular expertise.

"They can bring that expertise into the bilateral relationship and create benefits for both countries," she said.

Karpanos noted that discussions about British business and trade often focus excessively on London.

"But London is not the only business center. We have Cambridge, the Midlands, Wales, Scotland and Huntingdonshire, all of which are rich in resources and business ecosystems," she said.

She highlighted sectors including energy, green energy, high technology, FinTech, AgriTech, BioTech, life sciences and advanced manufacturing, saying they align closely with Azerbaijan's current industrial strategy and could further strengthen bilateral ties.

Karpanos also stressed the importance of supporting small and medium-sized enterprises.

"SMEs are often at a disadvantage when it comes to raising capital. We should remember that they do not have large international teams experienced in building businesses globally. They have to focus on developing and managing their businesses while also figuring out how to enter international markets," she said.

She added that while multinational companies contribute significantly to both economies through their large assets, SMEs remain the driving force of every economy, making targeted support for them especially important.