Investments of Persian Gulf countries in Azerbaijan exceed $600M

By the end of the first half of 2025, Persian Gulf countries had invested $606 million in Azerbaijan, Report informs with reference to the Eurasian Development Bank's "Eurasian Region and Partner Countries in Asia: Analysis of Investment Flows."

The bank notes the high rate of investments from Gulf countries into the Eurasian region. In the first half of 2025, their volume reached $23.9 billion, which is 3.2 times more than in 2016 and 60% higher than the level of 2023.

During the first six months of 2025, investors from Persian Gulf countries launched 10 new projects totaling approximately $1 billion. Upon full implementation, the total value of these initiatives will exceed $6.5 billion.

Since 2016, the number of active projects has increased to 55. In 2025, implementation began on five projects in Uzbekistan, three in Kazakhstan, and two in Azerbaijan.

Leading investors in the Eurasian region are: UAE (68%, $16.1 billion), Saudi Arabia (18%, $4.2 billion), Qatar (10%, $2.4 billion), and Oman (5%, $1.1 billion).

"Almost 96% of investments from the Gulf are directed to Central Asia. Smaller amounts are flowing into Azerbaijan ($606 million), Armenia ($174 million), Georgia ($157 million), Kyrgyzstan ($75 million), and other countries," the bank states.

Masdar company (UAE) is implementing two projects for the construction of solar power plants in the Neftchala and Bilasuvar districts of Azerbaijan. Investments in these projects upon full implementation will amount to $383 million (Neftchala district, 315 MW) and $283 million (Bilasuvar district, 445 MW) respectively.

In terms of sectors, Gulf countries have concentrated their main investments in the oil and gas sector and electric power industry. About 43% is allocated to an oil production project in Turkmenistan, and another 35% to 29 projects in the electric power industry of Uzbekistan and Azerbaijan, predominantly in the renewable energy segment.

"In recent years, Arab investors have been increasingly exploring opportunities to diversify assets, considering new directions for investments in Azerbaijan, Georgia, and Armenia," emphasizes the EDB.

The key direction of Saudi Arabia's investments is Uzbekistan, which accounts for about 93% of all accumulated investments. The remaining portion of investments is directed to Azerbaijan.