AIFC and Institute for Development and Diplomacy Unveil Strategic Vision for Kazakhstan-Azerbaijan Economic Partnership

The Astana International Financial Centre (AIFC) and the Institute for Development and Diplomacy (IDD) at ADA University have jointly prepared an analytical report exploring the prospects for deepening economic cooperation between Kazakhstan and Azerbaijan. 

The report highlights the potential of the strategic partnership between two countries. Kazakhstan and Azerbaijan serve as vital hubs within the Silk Road region and are shaping a coordinated geoeconomic strategy that prioritizes economic diversification, expansion of foreign trade flows, and strengthening of transregional connectivity. 

Renat Bekturov, the Governor of the Astana International Financial Centre, stated: “This joint policy paper aims to contribute to the ongoing dialogue on how our two countries can strengthen economic cooperation in practical and forward-looking ways. Its core message is clear: economic integration must be proactive, intentional, and inclusive if it is to generate long-term value. The AIFC is uniquely positioned to support this process. As a regional hub for capital formation and financial innovation, we provide a trusted platform for structuring investments, financing cross-border infrastructure, and fostering sustainable finance.” 

Dr. Fariz Ismailzade, the Director of the Institute for Development and Diplomacy at ADA University, Vice-Rector for External and Government Affairs of ADA University, noted: “As this paper explains, Azerbaijan and Kazakhstan are both “keystone states” of the Silk Road region and play virtually indispensable roles in advancing the quest to make this part of the world into one of the most important, reliable, stable, secure, rapid, and cost-effective global drivers of a new form of connectivity—one that enables our countries and our neighbors to achieve the collective bargaining power necessary to set the terms of the Silk Road region’s agenda and, ultimately, achieve independent agency. In doing so, our two countries have opted to focus on geoeconomics and are prioritizing bilateral projects. Ranging from energy (both conventional and renewable), transport, and logistics to financial services, telecommunications, and agricultural trade, our two countries embrace common values, share a common development vision, and embrace a common strategic outlook.” 

Key highlights of the analytical report: 

• (1) From Trade Partners to Regional Co-Creators: Kazakhstan and Azerbaijan are striving for coordinated leadership in developing the Silk Road’s transport, energy, and financial infrastructure. 

• (2) Energy Transition: The expansion of oil exports via the Baku – Tbilisi – Ceyhan pipeline and investments in green energy including the Trans-Caspian cable project – open up prospects for exporting “clean energy” to the EU. 

• (3) Logistics and Finance: A more than fourfold increase in freight traffic along the Middle Corridor since 2021 underscores the region’s role as a key transit hub. The AIFC, in turn, is ready to offer a platform for structuring projects in this area. 

• (4) Digital and Agricultural Infrastructure: Initiatives such as laying the Caspian fiber-optic cable and developing logistics chains enhance food security and digital competitiveness for both countries. 

The report emphasizes that the future success of economic integration will depend on coordinated investments in infrastructure, digital transformation, regulatory harmonization, and the development of joint ventures. By implementing these measures, Kazakhstan and Azerbaijan can not only strengthen their economic resilience but also assert themselves as regional leaders in the emerging Eurasian economy. 

The full analytical report can be accessed via this link.  

Background Information:       

The Astana International Financial Centre (AIFC) is a leading financial hub in the Eastern Europe and Central Asia region, designed to connect global capital with the vast opportunities of emerging markets. Positioned at the crossroads of Europe and Asia, the AIFC combines international best practices with innovative approaches to create a world-class platform for investment, business, and financial services. Since its establishment in 2018, the AIFC has attracted over USD 14.8 bn in investments into Kazakhstan’s economy. Over 3,900 companies from 80+ countries, including the USA, the UK, China, Turkiye, the Republic of Korea, Singapore, and others, are registered within the AIFC’s jurisdiction.    

The Institute for Development and Diplomacy (IDD) at ADA University is a leаding think tank in the Silk Road region. Headquartered in Baku, Azerbaijan, it serves as ADA University’s hub of policy-oriented, interdisciplinary research output as well as the focal point for high-level, policy-oriented conferences, briefings, and workshops. It specializes in foreign policy, energy and sustainable development, and regional connectivity.