Azerbaijan invites German companies to manufacture for wider regional markets

Azerbaijan is urging German companies to view the country not simply as a domestic market but as a manufacturing and investment platform capable of serving a much wider region, Deputy Economy Minister Samad Bashirli said.

“Our proposal to German companies is simple: come to Azerbaijan, but manufacture for the wider region,” Bashirli said at the German-Azerbaijani Strategic Partnership and Connectivity Conference.

The deputy minister identified connectivity as one of the main drivers of economic cooperation between Azerbaijan and Germany, arguing that stronger links can boost bilateral trade, improve supply-chain resilience and provide greater access to markets in both Europe and Asia through the Middle Corridor.

“We view connectivity in terms of the movement of goods, energy, data, and capital. Integrating these flows can transform transport routes into economic corridors that support production, services, and investment across the entire region,” Bashirli said.

He stressed that Azerbaijan's strategic position between Europe and Asia should allow the country to move beyond its traditional role as a transit hub and capture more of the economic value generated by growing trade flows across the region.

“Azerbaijan should be viewed not merely as a market of 10 million people, but as a regional platform for investment and technological cooperation spanning the Caspian Sea region, Central Asia, and the South Caucasus. Our goal is to ensure that this connectivity generates added value, rather than serving solely as a transit route,” he said.

Bashirli highlighted the Alat Free Economic Zone as one of the principal platforms through which Azerbaijan hopes to attract export-oriented manufacturing.

Located along the Middle Corridor near the Baku International Sea Trade Port, the zone operates under a special legal and regulatory regime designed to attract investment in high-value and export-focused industries.

According to the deputy minister, the combination of Azerbaijan's location and expanding transport infrastructure creates opportunities for German manufacturers to process raw materials originating in Central Asia within Azerbaijan before supplying finished or intermediate products to customers in Türkiye and European markets.

Such a model would effectively use the Middle Corridor not only to move cargo between Asia and Europe but also to support manufacturing and value creation along the route.

Bashirli said logistics facilities, terminals and digital services represent further areas where private investors can participate in the corridor's development.

He also pointed to Azerbaijan's economic diversification efforts, saying the next stage would require greater emphasis on productivity, technology and more sophisticated production.

“Economic diversification in Azerbaijan is already yielding measurable results. The priority now is to enhance the complexity of our economy, alongside increasing productivity, technological capacity, and export potential. I am confident that today's conference will generate practical ideas and new partnerships,” Bashirli added.