Azerbaijan’s Car Market: How Automobiles Became a Mirror of a New Economy

It is difficult to find a district in Baku today where a construction crane does not rise above the skyline. From the Caspian coast to the outskirts of Absheron, residential complexes continue to replace the old Soviet housing stock, while the real estate market is increasingly turning not merely into a sector of the economy, but into one of the main indicators of Azerbaijan’s financial condition.

In Azerbaijan, the beauty industry has become one of the fastest-growing segments of the service economy over the past decade. This sphere is developing as a complex ecosystem of services that includes cosmetology, dermatology, plastic aesthetic medicine, hairdressing and salon services, wellness and recreational centers (spa), healthy lifestyle (wellness) services, professional makeup and hair design, as well as integration with the digital influencer economy. According to international approaches to the beauty economy, this sector is now regarded not only as a consumer service but also as a system of employment and an import-dependent economy.

In the evening, only some of the windows are lit in one of the new residential towers in Baku White City. Many of the apartments remain empty — purchased as investments, protection against inflation or long-term assets. For many young residents of the Azerbaijani capital, such buildings have become symbols of a new urban reality: Baku is growing wealthier, but home ownership is becoming increasingly unattainable.

Azerbaijan’s venture capital market remains small and at an early stage of development despite a growing number of funds and government efforts to stimulate the innovation economy, according to market participants and industry assessments.