The Azerbaijan-UAE strategic alliance in light of recent peace efforts


Over the past few years, I have been proud to witness how the relationship between Azerbaijan and the United Arab Emirates has grown into a true strategic partnership. What started with economic and energy cooperation has now expanded into trade, infrastructure and political dialogue. For us in Azerbaijan, it is encouraging to see the UAE viewing our region as an important partner within its broader Eurasian vision.

This deepening bond reflects mutual respect, shared aspirations and a belief in building a stronger, more connected future together. And that spirit of trust and partnership was on full display in the realm of peace diplomacy this summer.

Peace diplomacy in Abu Dhabi

On 10th July 2025, we witnessed a historic moment as President Ilham Aliyev met Armenian Prime Minister Nikol Pashinyan in the UAE’s capital – their first formal in-person meeting since the Russian-mediated talks in March. For Azerbaijan, the UAE’s role as a neutral host was invaluable, enabling direct talks without outside mediators (Global Voices; Aze Media; AP News). By hosting the summit, the UAE proved itself a trusted facilitator beyond the Gulf, offering fresh alternatives in South Caucasus diplomacy and signalling its growing global influence (Jamestown).

The Abu Dhabi summit generated the momentum that led to the 8th August 2025 peace agreement in the US. Watching President Donald Trump bring both leaders together at the White House to sign the Joint Declaration was profoundly moving for Azerbaijan, marking the first real step toward the lasting peace our people have long sought.

For us, the UAE summit and the August signing stand as the most significant stride toward enduring peace in the South Caucasus in a generation – a turning point we will remember in our history.

Economic and geopolitical synergy

Just as diplomacy has opened new doors for peace, our partnership with the UAE is also reshaping Azerbaijan’s economic future. During the July peace talks, President Mohamed bin Zayed also reaffirmed the UAE’s commitment to Azerbaijan’s development, highlighting shared values of stability, dialogue and connectivity (Gulf Today). The two countries signed a Comprehensive Economic Partnership Agreement (CEPA), projected to add USD 680 million to the UAE’s GDP and USD 300 million to Azerbaijan’s by 2031, while boosting trade, logistics, renewable energy, investment, food security and SME growth. Companies like ADNOC and Masdar are set to play major roles in Azerbaijan’s clean-tech ambitions (Arab News; Eurasia Review).

Bilateral trade already reflects this momentum, rising 36% in 2024 to USD 2.24 billion – half of Azerbaijan’s total trade with the GCC. The UAE is now Azerbaijan’s leading Arab investor, with investments exceeding USD 1 billion (Al Monitor).

Regional implications and future trajectory

For us in Azerbaijan, the Abu Dhabi talks and the economic agreements that followed reaffirm our country’s rise as a true crossroads between Europe, Asia and the Middle East. That role will only grow with the Zangezur Corridor – now the Trump Route for International Peace and Prosperity (TRIPP) – a project that, if realized, could redraw the region’s shipping, energy and trade map.

For the UAE, this is a bold entry into a global geopolitical arena, combining peace diplomacy with hard investment gains. By hosting talks and striking deals, Abu Dhabi has positioned itself as both broker and beneficiary, betting on Azerbaijan’s future as a pivotal transit state.

What makes this moment so important is that the benefits extend beyond our two nations. As political normalization advances, dialogue deepens and economies connect, this is laying the foundation for shared prosperity and a more stable future for the entire South Caucasus and beyond.