At the southern foot of the Caucasus Mountains and on the west coast of the Caspian Sea, there is a country that is both ancient and modern - Azerbaijan. It is a key transportation hub on the "Silk Road Economic Belt" and also a place where Eastern and Western civilizations converge.

With the acceleration of national modernization, the speed of post-war reconstruction and the in-depth development of regional economic integration, Azerbaijan is becoming an important emerging market for Chinese enterprises to "go global", especially demonstrating unprecedented potential in the field of construction and building materials.

I.The "energy country" and transportation hub of the Caucasus region

Azerbaijan is located at the junction of Europe and Asia. It borders Russia to the north, Iran to the south, Georgia and Armenia to the west, and the Caspian Sea to the east. It is one of the most important countries in the South Caucasus region.

Basic Information

• Capital: Baku, the largest city, port and economic center in the Caucasus region
• Population: over 10.4 million
• GDP (2024) : approximately 112 billion US dollars, with a per capita GDP of approximately 12,000 US dollars
• Religious culture: It is mainly Islamic culture, but the society is open and highly inclusive
• Language: the official language is Azerbaijani. Russian and Turkish are also relatively common

Significant strategic position:

• It is an important transit country for Central Asian energy exports to Europe and has the Baku-Tbilisi-Jiehan (BTC) oil pipeline
• It is also an intermediate bridge connecting China with Europe and the Black Sea region, undertaking the construction of a transportation and logistics hub in the South Caucasus under the Belt and Road Initiative

II.A hot land for building materials is on the rise: the reconstruction and upgrading of infrastructure in Azerbaijan are accelerating comprehensively

In recent years, the Azerbaijan government has been actively promoting urban renewal and reconstruction projects. Especially after the Nagorno-Karabakh conflict in 2020, the post-war reconstruction project in the Karabakh region has been listed as a national strategic priority.

The building materials market presents three major trends:

1️⃣ Urban construction and real estate drive the overall demand for building materials

• The capital Baku is currently undergoing renovation of its old urban area and development of a new one, with multiple large-scale commercial and residential projects being constructed simultaneously
• Real estate development drives the consumption of various materials such as tiles, aluminum profiles, doors and Windows, lighting, hardware and bathroom fixtures

2️⃣ Post-war reconstruction unleashed huge demand

• About 100 new towns and infrastructure projects will be built in and around Karabakh for resident resettlement and industrial revitalization
• It is expected to drive over 1.5 billion US dollars of demand for building materials procurement, covering areas such as roads, residences, hospitals and schools

3️⃣ Modernization and upgrading of national infrastructure such as transportation, power and water conservancy

• Including large-scale projects such as expressways, industrial parks, power stations, and water treatment facilities, there is a stable demand for products such as steel structures, construction equipment, and waterproofing materials

III.Market Data: Imported building materials have become the main source, and Chinese enterprises have unlimited potential

Due to its weak industrial foundation and incomplete product range, the construction industry in Azerbaijan is highly dependent on imported building materials.

The latest market data shows:

• In 2024, the total scale of the building materials market in Azerbaijan exceeded 2.2 billion US dollars, among which building decoration materials, hardware accessories, and materials for water and electricity systems were the main categories
• China is one of its top three importers of building materials, with a stable market share of around 30%
• Azerbaijan has a strong demand for high cost-performance products, and the advantages of "Made in China" are obvious

Popular imported categories:

IV.China - Azerbaijan Relations

In recent years, economic and trade cooperation between China and Azerbaijan has grown rapidly. Under the framework of the "Belt and Road Initiative", the two countries have signed strategic cooperation memorandums on multiple occasions. Azerbaijan is one of the priority cooperative countries of China in the Caucasus region.

The highlights of the cooperation include:

• Transportation and logistics  linkage: China-Europe Railway Express connects Georgia and Turkey through Baku
• Energy and engineering cooperation projects: Chinese enterprises participate in power transmission, power equipment, port engineering, etc. in Azerbaijan
• Stable interaction on the exhibition platform: multiple bilateral commodity exhibitions and investment negotiation meetings are held every year to promote people-to-people exchanges and business connections

For Chinese building materials enterprises, Azerbaijan is a stable, secure and huge growth potential "starting point market for going global". It not only has clear project demands, but also enjoys a good reputation and popularity in China.

V.KAC Exhibition Group is making a strong comeback! The Building Materials Zone at Azerbaijan Home Appliances & Consumer Electronics Expo is waiting for you!

To help Chinese building materials enterprises open up the Central Asian market, KAC International Exhibition will continue to organize the Smart Life Expo 2025 Azerbaijan, creating one of the most influential industry platforms along the "Belt and Road"!

Time: 25-27 September, 2025
Venue: Baku Expo Center
Exhibition Scope: building materials, decoration materials, hardware and bathroom fixtures, lighting and electrical appliances, door and facade systems, construction equipment, etc

From policy support to market demand, from geographical advantages to cultural friendliness, Azerbaijan is providing Chinese building materials enterprises with an export platform that is "stable, developing and promising".