DOI: https://doi.org/10.36719/2789-6919/54/108-111
Firuza Mammadova
Azerbaijan State University of Economics
Master’s student
https://orcid.org/0009-0009-0969-9990
firuzememmedova2018@gmail.com
Germany-Azerbaijan Economic Relations and the Role of SMEs
Abstract
The economic relationship between Germany and Azerbaijan has steadily evolved, with both countries benefiting from a diverse range of sectors. Germany is one of Azerbaijan’s major trade partners within the European Union, with the two nations enjoying strong cooperation in areas such as energy, trade, investment, and technology. The bilateral ties are particularly important in the energy sector, with Azerbaijan supplying oil and gas to Germany, while Germany offers advanced technologies and expertise in various industries, including manufacturing, automotive, and green energy.
Small and Medium Enterprises (SMEs) play a crucial role in strengthening these economic ties. In Azerbaijan, SMEs are a significant driver of job creation, innovation, and economic diversification. As the Azerbaijani economy seeks to diversify beyond its oil dependency, SMEs are critical for the development of non-oil sectors, including technology, agriculture, and services. German investments and partnerships are essential in this process, as German SMEs bring in best practices, cutting-edge technologies, and management know-how that help Azerbaijani SMEs scale up and enhance their competitiveness in both local and international markets.
Keywords: economic, trade, small, energy, bilateral, technological, investment