Azerbaijan and Uzbekistan Deepen Economic Ties with $500 Million Joint Investment Fund

Azerbaijan and Uzbekistan signed 11 strategic agreements, including the creation of a $500 million joint investment fund, during the inaugural Uzbek-Azerbaijani interregional forum held in Tashkent, marking a significant step towards strengthening their economic partnership.

Azerbaijani Economy Minister Mikail Jabbarov, who led his country's delegation, emphasized that the new fund is expected to boost trade turnover and enhance industrial cooperation between the two nations. The fund, initially set at $500 million, may see further increases in the future based on its success in fostering bilateral trade and investment.

Additionally, a comprehensive Roadmap for cooperation between the capitals Tashkent and Baku was signed, alongside agreements to establish sister city relationships between Bukhara and Lankaran, Khiva and Shusha, Kokand and Sheki, as well as Samarkand and Ganja.

Bakhtiyor Saidov, the Acting Minister of Foreign Affairs of Uzbekistan, highlighted the unprecedented growth in trade between the two countries, with a sixfold increase since 2017. The joint objective is to escalate this figure to $1 billion within the next five years. According to Uzbekistan's Minister of Investment, Industry and Trade, Laziz Kudratov, both nations aim to reduce reliance on expensive imports from third countries by enhancing the exchange of high-demand products, projecting potential increases in bilateral trade volumes.

The forum also covered discussions on new industrial projects including the expansion of car manufacturing in Azerbaijan’s Hajigabul region, the establishment of a cotton and textile cluster in Ishimli, and the development of silk production in Barda. Uzbekistan is set to boost its production of pectin, building materials, and jewelry, incorporating Azerbaijani partnership and investment.

The event further included the 3rd meeting of the Uzbek-Azerbaijani Business Council and numerous bilateral entrepreneur meetings, which fostered discussions on expanding commercial and economic exchanges.

During his visit, Jabbarov was received by Uzbek President Shavkat Mirziyoyev and highlighted in an interview with Uzbekistan 24 TV channel that the bilateral relationship is currently prioritized in four key areas: transport, mutual investments, energy, and industrial cooperation. He noted that the dynamics in these sectors are exceptionally positive, with trade and transport turnover with Central Asia notably higher than with other regions.

This strengthening of ties comes as both nations look to solidify their positions as pivotal economic hubs in the Central Asian region, leveraging their strategic locations and complementary industries to foster broader regional economic integration.