Azerbaijan, Czechia Deepen Economic Ties at High-Level Business Forum in Gabala

Gabala, The Gulf Observer: An Azerbaijan–Czechia business forum was held on April 27 in Gabala with the participation of President Ilham Aliyev and Czech Prime Minister Andrej Babiš, marking a significant step toward strengthening bilateral economic cooperation.

Addressing the forum, President Aliyev welcomed the large Czech business delegation accompanying Prime Minister Babiš, describing it as a strong signal of mutual interest in expanding trade and investment. He emphasized that while business decisions are driven by profitability, legal frameworks and political stability play a critical role in fostering investor confidence.

Highlighting Azerbaijan’s economic stability, President Aliyev noted that the national currency has remained stable since 2017, with the exchange rate holding at 1.7 manat to the US dollar. He further stated that approximately $350 billion has been invested in Azerbaijan over the past two decades, nearly half of which came from foreign investors.

The President underlined ongoing efforts to strengthen the country’s financial system, including reducing external debt, which currently stands at 6.1 percent of GDP. He also pointed to Azerbaijan’s improved international credit standing, with Moody’s upgrading the country to investment grade with a positive outlook.

Aliyev stressed the importance of cooperation in key sectors, particularly energy, where Azerbaijan already supplies crude oil to the Czech Republic. He noted discussions on expanding collaboration to natural gas and broader strategic areas such as petrochemicals, renewable energy, artificial intelligence, and data centers.

The Azerbaijani leader also highlighted growing defense industry cooperation, revealing that several contracts have already been signed with Czech companies, with plans to expand into joint manufacturing.

Among key outcomes, both sides agreed to elevate the co-chairmanship of the Joint Economic Commission to the ministerial level and to convene a session of the intergovernmental commission later this year to accelerate ongoing initiatives.

Prime Minister Babiš, in his remarks, described Azerbaijan as a strategic partner and noted that his visit—the first outside the European Union—underscored the importance Prague places on bilateral ties. He revealed that Azerbaijan accounts for 42 percent of the Czech Republic’s crude oil supply, making it the country’s largest supplier.

Babiš emphasized the need for long-term cooperation in energy, including gas supplies and mutual investments, particularly in light of evolving global energy challenges. He also highlighted the presence of around 50 Czech companies at the forum, representing sectors such as energy, defense, transport engineering, mining, finance, and advanced technologies.

The Czech premier expressed strong interest in expanding cooperation in transport infrastructure, including potential involvement in projects such as the Baku metro, as well as joint ventures, research collaboration, and workforce development.

Both leaders also underscored the importance of enhancing connectivity, tourism, and people-to-people exchanges. President Aliyev noted Azerbaijan’s strategic position along key international transport corridors and ongoing investments to strengthen East-West and North-South connectivity.

The forum concluded with both sides expressing optimism that the engagement would pave the way for deeper economic integration, increased trade turnover, and long-term strategic partnership between Azerbaijan and the Czech Republic.