GCC, Azerbaijan vow to boost economic ties 
Bilateral trade between the Gulf Cooperation Council countries and Azerbaijan witnessed remarkable improvement last year, recording a growth of 76 percent over 2022, reaching $1.8 billion, while Gulf investments in Azerbaijan amounted to about $7 billion.
Despite the remarkable growth in trade volume between the two economic blocs, officials from both sides believe that the trade volume achieved is far less than the ambition, especially given the long-standing trade relations between the two economies that date back to the 1990s.
A joint action plan for 2024-2028 was announced in 2023 to boost trade between the GCC countries and Azerbaijan, in line with the common goals of both sides.
The plan aims to encourage economic growth in several sectors of mutual interest to both sides, such as trade and investment opportunities in energy, agriculture, tourism, logistic services, and other sectors of the economy.
Additionally, the plan aims to strengthen and elevate the relations between the GCC countries and Azerbaijan, enhancing economic ties and bolstering the relationship for the benefit of common interests.
The Federation of GCC Chambers and the Azerbaijan Export and Investment Promotion Agency, with the support of the Ministry of Economy of Azerbaijan and the GCC Council, organized the second Gulf-Azerbaijan Economic Forum on Sept. 25, under the theme “Sustainability, Investments, Partnerships,” in Baku.
The two-day forum aimed to boost economic relations between the two sides in several promising economic sectors. The forum aimed to showcase the importance of enhancing trade relations between the GCC countries and Azerbaijan by increasing the volume of trade exchange between the two sides.
The forum featured three main panels and business-to-business networking discussions on cooperation in the renewable and clean energy sectors, electricity and water fields, challenges and opportunities in the transport and logistics sectors, and strategic partnerships in agriculture and food security.
A memorandum of understanding was signed between the federation and the Azerbaijan agency, aiming to boost bilateral trade between the GCC countries and Azerbaijan based on the mutual interests of the two economic blocs.
I was honored to moderate the second panel discussion titled “Challenges and Opportunities in Transportation and Logistics Services between the GCC and Azerbaijan.”
The participants stressed the importance of overcoming challenges that limit the ease of flow of goods and services between the GCC countries and Azerbaijan.
Challenges include standardizing specifications and standards, harmonizing customs procedures, developing air, sea, and transport networks, improving logistics infrastructure, investing in digital technology, stimulating investment in the logistics sector, and facilitating travel.
Despite these challenges, it is believed that the GCC countries and Azerbaijan have significant opportunities to enhance their economic relations, particularly given their strategic geographical locations and cultural and civilizational proximity.
— Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
