Non-oil exports climb as Baku pushes post-petro growth model

Azerbaijan, especially in recent years, has been implementing a strategy to reduce dependence on oil and develop the non-oil sector. Within this policy framework, new production capacities have been created in industry, agriculture, and processing, and the geography of exports has been expanded. The “Export Review” presented by the Center for Analysis of Economic Reforms and Communication (CAERC) shows that in January 2026, non-oil exports increased by 9% compared to the same period of 2025, reaching 268.4 million USD. This growth can be considered as a result of Azerbaijan’s economic diversification policy.

In January, exports of food products increased by 22.6%, amounting to 103 million USD. Exports of sugar rose by 169.3%, cotton yarn by 137.6%, vegetable and animal oils by 90.8%, aluminum products by 39.5%, fruits and vegetables by 32.1%, cotton fiber by 23.2%, tea by 20.9%, and alcoholic and non-alcoholic beverages by 14.2%. Agricultural exports grew by 32.6% to 85.7 million USD, while agro-industrial exports amounted to 21.9 million USD. In total, combined exports of agricultural and agro-industrial products increased by 23.8% to 107.6 million USD.

In the non-oil sector, gold ranked first (33 million USD), shelled hazelnuts second (29 million USD), and fresh persimmons third (22.3 million USD). These figures show that Azerbaijan is strengthening its competitiveness in both agricultural and industrial products.

Russia slips, Switzerland rises: Azerbaijan’s export map shifts in 2026

In January 2026, five main countries stood out in Azerbaijan’s non-oil exports:

- Russia (77 million USD, ?11 million):Despite being a traditional market, the decline is linked to ruble fluctuations, customs restrictions, and Russia’s strengthening domestic production.
- Switzerland (38.6 million USD, +16.4 million): Growth is mainly due to gold and metal exports. The expansion of AzerGold CJSC’s operations boosted this figure.
- Georgia (31.6 million USD, +5.1 million): Increased border trade and rising demand for agricultural products strengthened exports.
- Turkiye (31.5 million USD, ?5.6 million): The decline is associated with intensified competition, growth in local production, and currency exchange factors.
- Ukraine (15.2 million USD, ?6.6 million):War and economic instability limited exports to this country.

This dynamic shows that Azerbaijan’s export geography needs to be further expanded and new market opportunities explored.

Active participation of both public and private companies in non-oil exports is noteworthy. Considering that state-owned enterprises mainly lead in industrial and strategic products, while private companies stand out in agriculture and processing, this cooperation provides advantages in infrastructure as well as production and competitiveness.

Infrastructure and market access primarily refer to the state creating conditions for exports through logistics, customs, and diplomatic opportunities. Production and competitiveness, on the other hand, mean that the private sector increases production capacity, applies innovation, and delivers products in line with market demand. Thus, public-private partnership makes the export structure more sustainable and strengthens Azerbaijan’s position in global non-oil markets.

- State-owned enterprises (“AzerGold”, “SOCAR Polymer”, “Azeraluminium”) are leaders in industrial and metal products.
- Private companies (“AGRARCO”, “Prime Cotton”, “Baku Steel Company”) stand out in agriculture and processing.

This balance shows that if public-private partnership is properly established, both industry and agriculture can develop in parallel within the export structure. The role of the state should be to provide infrastructure, financial support, and access to export markets. The private sector, meanwhile, should focus on increasing efficiency, applying innovations, and producing goods that meet market demand.

The observed growth in Azerbaijan’s non-oil exports is a successful outcome of the country’s economic diversification policy. However, declines in certain markets indicate that expanding export geography, diversifying product ranges, and enhancing competitiveness remain essential. Public-private cooperation can serve as the key mechanism in this process: the state facilitates market access, while the private sector drives production and exports.