Azerbaijan Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in azerbaijan, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Digital Economy
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Market overview

Azerbaijan’s digital economy is undergoing a significant transformation, driven by strategic government initiatives and a growing demand for technological innovation. As of 2025, internet penetration in the country has reached approximately 89 percent, with over nine million users actively online. Mobile connectivity is even more widespread, with more than 12 million cellular connections, indicating that many citizens use multiple devices to access digital services. Social media usage is also robust, with nearly 65 percent of the population using various platforms.

In January 2025, Azerbaijan launched a comprehensive Digital Economy Development Strategy, which outlined 51 targeted initiatives aimed at building a sustainable and competitive digital ecosystem. These initiatives focus on enhancing human capital, promoting innovation, digitizing business operations, and integrating advanced technologies such as artificial intelligence and blockchain. The strategy is supported by presidential decrees and national programs, underscoring Azerbaijan’s commitment to positioning itself as a regional leader in digital connectivity.

Public services have seen notable improvements through platforms like ASAN and myGov, which streamline access to government services such as identity verification and legal documentation. The Digital Bridge system, designed to facilitate secure data exchange between government entities, has significantly improved. Azerbaijan’s progress in e-governance has earned it a place in the “Very High EGDI” category of the United Nations’ e-Government Development Index, reflecting its success in delivering efficient and accessible digital public services.
The innovation and startup ecosystem in Azerbaijan is gaining momentum. Technology parks and incubators are supporting a new generation of entrepreneurs, while blockchain and digital currency applications are increasingly being implemented across government and the private sector.

Market challenges 

Azerbaijan’s digital economy regulation is evolving rapidly, with an emphasis on modernization, transparency, and international alignment. The government is working to implement its Digital Economy Development Strategy, which includes provisions for legislative reform, digital infrastructure, financial accessibility, and the development of digital skills. This strategy is designed to create a sustainable and competitive digital ecosystem, with clear regulatory pathways for innovation, business digitization, and the adoption of Fourth Industrial Revolution technologies such as artificial intelligence and blockchain. 

In terms of digital trade, Azerbaijan has made significant strides in reducing barriers and facilitating cross-border commerce. In the UN’s 2025 Global Survey on Digital and Sustainable Trade Facilitation, Azerbaijan ranks among the top ten countries in the Eurasian region for trade facilitation, with a 92.5 percent score. The country scored 100 percent on transparency and 92.59 percent on paperless trade, reflecting its commitment to digitizing customs procedures and publishing all import-export rules online. These reforms have streamlined formal procedures, improved institutional coordination, and enhanced the traceability of foreign trade processes.

Despite these achievements, some challenges remain. Cross-border paperless trade still lags behind domestic digitalization efforts, with a score of 72.2 percent, indicating room for improvement in harmonizing international standards and systems. Continued efforts are needed to align Azerbaijan’s digital trade regulations with global frameworks, reduce technical barriers, and ensure interoperability with international platforms.

Opportunities for digital trade 

Cross-border e-commerce is one of the most promising, especially in sectors like textiles, food products, and electronics. With increasing internet penetration (89 percent) and mobile connectivity (118 percent of the population), Azerbaijan’s consumer base is highly accessible through digital platforms.

The country’s paperless trade infrastructure is another key enabler. Azerbaijan scored 92.59 percent in paperless trade and 100 percent in transparency, meaning that its import-export rules, tariffs, and procedures are fully digitized and publicly available.

Azerbaijan’s strategic location along the Trans-Caspian International Transport Corridor also makes it a growing digital trade hub. The country ranks second among corridor nations, after China, in trade facilitation performance. This opens opportunities for logistics tech, digital freight platforms, and blockchain-based supply chain solutions.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

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As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

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The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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