The EBRD in Azerbaijan

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The EBRD has been investing in Azerbaijan since 1992

In Azerbaijan, the Bank is helping to develop the country’s non-oil sector, strengthen local lenders and boost investment in the green economy.

An Azerbaijani success story: how EBRD investment is supporting businesses such as Araz, which it helped to secure its number one position in the domestic market and gain an international perspective.

198

Number of projects to date

€3,783m

Cumulative EBRD investment

€3,132m

Cumulative disbursements

38%

Private sector share of portfolio

Number of active portfolio operations

€991m

Current portfolio of projects

€717m

Operating assets

Equity share of portfolio

25 September 1992

Joined the EBRD

30,010

Capital subscription (€000)

EBRD Governor: Mikayil Jabbarov
EBRD Alternate Governor: Sahil Babayev
EBRD Board Director, Türkiye: Yasemin Girici
EBRD Board Alternate Director: Lucian Isar

EBRD Shareholders information

In Azerbaijan, we are helping to develop the country’s non-oil sector, strengthen local lenders and boost investment in the green economy.

Focus areas

Helping to diversify Azerbaijan’s economy

By supporting private sector, non-oil sector development and strengthening the governance of private and state-owned companies.

Expanding access to finance for local businesses

We are encouraging lending by banks and non-bank financial institutions, also by helping to develop local-currency and capital markets.

Supporting the country’s green economy

Our work includes financing for renewable energy sources, greater energy efficiency, cleaner transport and sustainable infrastructure.

As well as being a country where EBRD invests, Azerbaijan is an EBRD donor, with a total contribution of €3.6 million, 50 per cent of which goes to the Eastern Europe Energy Efficiency and Environment Partnership (E5P) Fund and 50 per cent of which goes to the Azerbaijan-EBRD Cooperation Account. The EBRD’s latest Azerbaijan country strategy was approved in January 2025.

3.0%

EBRD forecast for Azerbaijan’s real GDP growth in 2025

2.5%

EBRD forecast for Azerbaijan's real GDP growth in 2026

Azerbaijan’s economy grew strongly in 2024, driven by the non-oil sector and public investment. Real GDP expanded by 4.1 per cent in 2024, up from 1.4 per cent in 2023, with non-oil growth reaching 6.2 per cent, compared with 3.7 per cent in 2023. The main non-oil contributors to growth were the construction, ICT, transportation, and tourism sectors. Economic activity was supported by rising real incomes and infrastructure investment, while the oil and gas sector returned to growth in March 2024, as gas production expanded to meet European demand. In the first quarter of 2025, real GDP grew by just 0.3 per cent year on year, compared with 4 per cent in the same period of 2024, as weaker oil and gas sector output offset solid momentum in the non-oil sector. Meanwhile, inflation remained contained, fluctuating between 0 per cent year on year in April 2024 (the lowest level in more than nine years) and 5.9 per cent in March 2025.

The recent acceleration was driven by food and services prices, but inflation remains within the target range of the Central Bank of Azerbaijan (CBAR) of 4 per cent (±2 per cent). The CBAR responded to easing inflation pressures in late 2023 by reducing the key policy rate cumulatively by 175 basis points, from 9 per cent in November 2023 to 7.25 per cent by May 2024, and has maintained it at this level since then. Recognising the need for additional measures to manage robust credit growth, which surpassed 20 per cent in 2024, the CBAR announced the activation of a 0.5 per cent countercyclical capital buffer, effective from March 2025. Real GDP growth is projected to moderate to 3 per cent in 2025 and 2.5 per cent in 2026. Growth will be supported by continued expansion in the non-oil economy and sustained public investment.

However, the outlook remains highly sensitive to fluctuations in oil and gas prices in the context of increased trade policy uncertainty, weaker external demand and potential setbacks in regional normalisation efforts. In the medium term, trade along the Middle Corridor connecting China to Europe could create opportunities for Azerbaijan’s transport and logistics sectors, as peace-building efforts may unlock new trade routes and investment flows.

Azerbaijan strategy and snapshot

Azerbaijan strategy

PDF format / 0.97 MB

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Report on public comments

PDF format / 0.18 MB

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Local language translation

PDF format / 2.14 MB

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Azerbaijan diagnostic 2024

PDF format / 2.99 MB

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Contact the EBRD in Azerbaijan

Head of Office: Nataly Mouravidze

Address:

EBRD Baku Resident Office, 90A Nizami Street, Landmark III, 3rd Floor, Baku AZ1010, Azerbaijan

Telephone:

+994 12 497 1014

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The EBRD in Azerbaijan

An Azerbaijani success story: how EBRD investment is supporting businesses such as Araz, which it helped to secure its number one position in the domestic market and gain an international perspective.

Focus areas

Helping to diversify Azerbaijan’s economy

Expanding access to finance for local businesses

Supporting the country’s green economy

Azerbaijan strategy and snapshot

Contact the EBRD in Azerbaijan

The EBRD in Azerbaijan

An Azerbaijani success story: how EBRD investment is supporting businesses such as Araz, which it helped to secure its number one position in the domestic market and gain an international perspective.

Focus areas

Helping to diversify Azerbaijan’s economy

Expanding access to finance for local businesses

Supporting the country’s green economy

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