Azerbaijan and UAE Strengthen Strategic Partnership with Focus on Green Energy
Based on mutual friendship and respect, Azerbaijan continues to strengthen their ties with the UAE. Strategic partnership between them is based on shared values and trust that align their interests together. Last year, following a successful hosting of COP28 by UAE, Azerbaijan is taking over as COP29 chairmanship this year. Despite being prominent oil and gas producers both countries are devoted to promoting “greening” and investing in renewable.
On August 1st there was a meeting in Shusha attended by the Minister of Economy Mikayil Jabbarov who also co-chairs Joint Intergovernmental Commission for Economic, Trade and Technical Cooperation between Azerbaijan and UAE, Abdulla Bin Touq Al Marri – Minister of Economy of the United Arab Emirates.
The meeting emphasized the importance of willpower from heads of state in advancing cooperation between both countries. It was said that mutual visits and meetings are important for defining new ways of interaction. The activities held by Business Support Organisations including the Joint Intergovernmental Commission (held its 9th meeting in Shusha), Embassy of Azerbaijan to the United Arab Emirates (UAE) and Consulate General of Azerbaijan located in Dubai play a significant role in strengthening business relations.
During the meeting, the possibility of strengthening bilateral cooperation was mentioned a lot; what also made it necessary to increase trade turnover and diversify its structure. Discussions also touched on alternative energy and tourism projects that could be implemented. Also, various issues related to negotiations on the Comprehensive Economic Partnership Agreement between Azerbaijan and the UAE were discussed. Afterward, they held the 9th meeting of Joint Intergovernmental Commissions for Economic, Commercial and Technical Cooperation between Azerbaijan and UAE governments.
Minister Mikayil Jabbarov said that government-business relations between Azerbaijan and the United Arab Emirates in a few years showed significant progress: trade has increased with positive results from joint initiatives. He provided information about excellent conditions for doing business in Azerbaijan, such as industrial parks and Alat Free Trade Zone where he invited United Arab Emirates’ entrepreneurs to come.
UAE Minister Abdulla Bin Touq Al Marri stated his pleasure in visiting Shusha, where this commission’s session took place. He emphasized that Azerbaijan had gone through major developments including successful realization of large-scale energy, transport, logistics infrastructure projects.
He expressed his optimism that current plans to reinforce cooperation amongst sectors of the economy will produce better joint ventures and improve commercial relations.
Moreover, a protocol was signed detailing the outcomes of the 9th meeting of the JIC– with steps for expanding trade and investment cooperation, supporting SMEs, introducing innovations and digitalization, energy (including green energy), industry, agriculture, food safety, environment, land reclamation and water management, transport and logistics, communication and high technologies, science and education, tourism healthcare and cultural exchange.
The Azerbaijan’s evolving energy policy lies in its rich alternative energy resources which are mainly aimed at developing green energy. Important joint projects between Azerbaijan and UAE indicate this trend.
In addition to considerable investments in traditional sources of power generation over the past years there has been a significant inflow of capital into renewable sources of electricity. A turning point was when Garadagh Solar Power Plant (GES) came on stream last year.
The Garadag Solar Power Plant became the largest solar power plant in the Caspian region and CIS after its official opening on October 26th, 2023. The total cost of the project funded through foreign investment amounts to 262 million dollars and it has a capacity of 230 megawatts (MW). The new facility will generate approximately 500 million kilowatt-hours of electricity per year, which will save about 110 million cubic meters of gas and reduce CO2 emissions by some 200 thousand tons.
This transition is a reflection of Azerbaijan’s commitment towards meeting its environmental obligations including targeting a decrease in greenhouse gas emissions by forty percent within fifty years and creating an emission-free zone in liberated territories. These initiatives are consistent with the strategic framework outlined in “Azerbaijan 2030: National Priorities for Socio-Economic Development” adopted in February, 2021. In five national priorities from clean environment and green growth aspirations are set high, as well as Azerbaijan is making significant progress towards achieving these objectives.
To conclude, this profound consolidation between Azerbaijan and UAE is just an example of a strong evolving partnership based on mutual respect and shared values. Both countries despite their traditional reliance on oil & gas have exhibited staunch commitments to advancing green energy and renewable technologies.
The recent meeting in Shusha underscored the importance of political will and collaborative efforts in identifying and pursuing new opportunities for bilateral cooperation.
The continuing initiatives, including the earth-shattering Garadag Solar Power Station, emphasize Azerbaijan’s determination to move towards a green future and meet its ecological obligations. Furthermore, the protocol that was signed during the 9th Joint Intergovernmental Commission meeting is another testament to expanding cooperation across different sectors. As Azerbaijan readies itself for chairing COP29, the ongoing partnership with UAE holds great promise for significant progress in renewable energy, economic diversification as well as mutual development.
