Azerbaijan’s industrial growth stalls as diversification gaps persist

Over the past decade, Azerbaijan has become one of the countries in the region that stands out in the high-technology sector, particularly in the space industry. The space policy, initiated by a decree signed by President Ilham Aliyev in 2008, has produced institutional, technological, and economic results in a relatively short period of time. Within this framework, Azercosmos has evolved into not only a provider of national security and communication infrastructure but also an export-oriented service sector entity.

The recent opening of the Absheron Battery Energy Storage Center of the Open Joint Stock Company AzerEnerji can be considered one of the most important developments in the country’s electric power sector. The presence at the ceremony only underscored the significance of this event. The head of state pressed a button symbolizing the launch of the Absheron Battery Energy Storage Center.

The issue of registering more than half a million undocumented homes in Azerbaijan remains a subject of ongoing discussion. At the same time, thousands of public catering facilities (restaurants, cafés, snack bars, wedding halls, etc.), industrial enterprises, and agricultural facilities across the country occupy areas many times larger than those specified in their technical designs recorded in registration documents.

Azerbaijan, which began actively extracting gas from the Caspian at the beginning of the 21st century, reached a peak production level in 2024, but may face a decline in production by the end of the decade due to decreasing investments in the sector and gradual depletion of the fields.