The 7TH WORLD TRADE EXPO AZERBAIJAN

Date: Sept. 25^th - 27^th, 2025

Venue: Baku International Expo Center

Organizer: KAC International Exhibition Group Limited

Exhibition Scope

1.Building Materials & Construction Machinery Zone

Building materials, construction hardware tools, engineering machinery and equipment, lighting fixtures, furniture, etc.

2.Industrial & Machinery Equipment Zone

Machine tools, packaging machinery and materials, printing machinery, electromechanical equipment, etc.

3.Consumer Electronics & Home Appliances Zone

Household appliances, consumer electronics, automatic control systems, etc.

4.Textiles, Leather & Daily Consumer Goods Zone

Home textiles, leather products, garments and fabrics, accessories and trimmings, footwear, daily necessities, etc.

5.Food & Equipment Zone

Food and beverages, food machinery and technology, food processing machinery and technology, food packaging machinery, and measuring equipment, etc.

6.Auto Parts & Accessories Zone

Vehicles, automotive parts, vehicle decorations, and related tools, etc.

Project Introduction

The WORLD TRADE EXPO AZERBAIJAN has been successfully held for six editions. At the last edition, over 200 enterprises from China and Azerbaijan participated, covering industries such as building materials, complete vehicles and accessories, consumer electronics, hardware tools, textiles, security products, toys, daily consumer goods, and new energy photovoltaic equipment. The on-site transaction volume reached 9.68 million USD, and the intended transaction volume was 36.8 million USD. The participating enterprises expressed great optimism about the market of Azerbaijan and its neighboring West Asian countries, and will continue to actively expand the market in Azerbaijan after the exhibition.

About AZERBAIJAN

Azerbaijan is situated in southeastern Transcaucasia at the crossroads of Europe and Asia, spanning 86,600 square kilometers. It borders the Caspian Sea to the east, Iran and Turkey to the south, Russia to the north, Kazakhstan and Turkmenistan across the Caspian Sea to the east, and Georgia and Armenia to the west. Strategically connecting Central Asia, Europe, the Middle East, and Russia, Azerbaijan serves as a key node on the China-Europe Railway Express and a vital trade route for the Belt and Road Initiative. The country boasts significant logistics advantages, including Baku Port, the Caspian Sea’s largest harbor.

In 2023, Azerbaijan’s nominal GDP reached $78.721 billion, with real GDP growth at 4.6%. As of December 2023, its population stood at 10.164 million, characterized by a high growth rate and a median age of 32. Notably, 24% of the population is under 14, while 65% are aged 18-50, reflecting a dynamic, consumption-driven demographic with strong purchasing power. Azerbaijani culture emphasizes social vibrancy, with a fondness for gatherings and celebrations.

Azerbaijan, often dubbed the “Little Dubai of the Caucasus” for its oil wealth, ranks 20^th globally in oil reserves and 9^th in natural gas. The energy sector and related industries contribute over 70% of GDP. Other industries include auto repair, agriculture, trade, and limited manufacturing. Domestic production of daily goods remains low, necessitating heavy reliance on imports - particularly high-quality products. In 2024, China emerged as Azerbaijan’s 2^nd largest trading partner and top import source, accounting for 45% of China’s trade with the South Caucasus region.

Market Business Opportunities

1.Geographical Advantages and Strategic Position

Azerbaijan is located at the junction of Asia and Europe and is an important node along the "Belt and Road Initiative", connecting Central Asia, the South Caucasus and the European market. Chinese enterprises can more conveniently expand into the European market.

2.Abundant Energy and Resources

Azerbaijan's oil reserves are estimated at 4 billion tons. In 2023, the total amount of oil extracted in Azerbaijan was approximately 30.2 million tons, of which 83.4% was sold abroad. The proven reserves of natural gas are 2.6 trillion cubic meters, and the expected reserves are as high as 6 trillion cubic meters. In addition, Azerbaijan is also rich in mineral resources. When Azerbaijan was a former Soviet republic, It and Russia are the only two republics that do not need subsidies from the central government. Today, Azerbaijan remains the wealthiest country in the Transcaucasia region, with strategic foreign exchange reserves exceeding 50 billion USD.

3.A Stable Political and Economic Environment

Azerbaijan enjoys political stability and an open economic policy, providing a favorable investment environment and tax incentives for foreign-funded enterprises and reducing trade barriers and cost risks.

4.Re-export Trade, reaching Iran

In addition to its domestic terminal market, Azerbaijan also has an excellent radiation market - Iran. Iran has a population of 88.55 million. Its GDP in 2023 was approximately 409.5 billion USD, with a growth rate of 5.4%. The economy is mainly based on the extraction of oil and natural gas. The oil and gas reserves are abundant. The proven oil reserves amount to 93 billion barrels, accounting for 10% of the world's total reserves and ranking fifth in the world. The proven natural gas reserves amount to 24 trillion cubic meters, accounting for 16% of the world's total reserves, second only to Russia and ranking second in the world. In 2024, Iran's daily oil production exceeded 2.7 million barrels. Due to the sanctions imposed on Iran, it is difficult for Chinese foreign trade enterprises to directly export products to Iran. However, as Azerbaijan has frequent civilian and commercial activities with Iran, Chinese foreign trade enterprises can export to Azerbaijan and then re-export to Iran. Azerbaijan and Iran share a common border that is hundreds of kilometers long. Both countries belong to the Muslim ethnic group. Iran has 20 million Azerbaijanis, so the two countries have profound cultural and historical ties. The trade relationship between Azerbaijan and Iran has also become interdependent and closer due to Iran's sanctions, providing the most convenient channel for Chinese enterprises to re-export to Iran.

5.Diversified Economic Development

As other energy economy countries have carried out economic reforms one after another and achieved outstanding results, the government of Azerbaijan, while consolidating the development of oil and gas, has also begun to actively develop non-oil industries to promote the all-round development of the national economy. Among them, the development momentum of large-scale infrastructure, tourism services and retail is remarkable. The infrastructure project of the Hazar Islands, which is expected to cost 100 billion USD, has attracted the attention of the whole of Asia and even the world. The entire project covers an area of 24 square kilometers and consists of 41 artificial islands and 19 districts, including 60 high-rise residential buildings, 150 schools, 50 kindergartens and hospitals, as well as multiple cinemas, theaters, restaurants, shopping centers and parks. The residential area will cover 8 million square meters, of which 4 million square meters will be built as shopping and commercial centers, and another 4 million square meters will be constructed as hotels and apartments. More than 1 million people will live here. This will be a new Venice City.

The magnificent natural scenery of the Caucasus, the long-standing Persian civilization of Azerbaijan, and the continuous construction of tourist destinations have also brought an increasing number of tourists to Azerbaijan. Driven by the tourism industry, the trade market has more demands and potential business opportunities, which has also driven the rapid development of the overall economy.

6.Bilateral Cooperation and Government Support

In recent years, with the rapid economic development of China, Azerbaijanis have begun to actively learn about Chinese culture and have signed a number of cooperation agreements with China. The relations between the two countries are friendly. Under the framework of the "Belt and Road Initiative", policy support and convenient conditions have been provided for Chinese enterprises, and a large number of Chinese goods have been purchased, which has sparked a "China fever" in the local area. "Made in China" products are very popular in the local area. China's exports to Azerbaijan have grown rapidly, with an increase of 46% in 2023.

Diplomatic Relations Between AZERBAIJAN and China

On the afternoon of July 3, 2024, the President of the People's Republic of China met with the President of Azerbaijan Aliyev, before attending the summit of the Shanghai Cooperation Organization in Astana. During this meeting, the two sides issued the "Joint Statement of the People's Republic of China and the Republic of Azerbaijan on Establishing a Strategic Partnership" and signed a series of cooperation documents in areas such as jointly building the "Belt and Road Initiative" and connectivity. Since 2017, Azerbaijan has been actively involved in the Belt and Road Initiative and has been seeking new cooperation opportunities in various industries. The development strategies of the two countries are highly consistent. The cooperation on jointly building the Belt and Road Initiative has been continuously advanced, and the bilateral trade volume has increased by more than 1,200 times in 30 years.

The main products that Azerbaijan imports from China include mechanical & electrical equipment, automobiles, building materials, clothing, electronic consumer goods and food, photovoltaic new energy equipment, etc.