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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Information and Communications Technology
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In 2024, Azerbaijan’s information and communication technology (ICT) sector emerged as a major driver of the country’s non-oil economic growth, thanks to the national diversification strategy, which emphasizes digitalization and innovation. Significant strides in digital government included record transaction volumes on the ASAN and e-Gov platforms, elimination of physical ID requirements through the Electronic Government Information System, integration of all courts into the Digital Document Circulation subsystem, and the launch of the Digital Bridge exchange and updated myGov platform. These advances propelled Azerbaijan into the Very High category of the United Nations’ E-Government Development Index for the first time and improved its Electronic Participation Index ranking from 98th to 88th place. 

As of 2025, internet penetration was 89 percent, with 9.23 million users online; mobile connections totaled 12.2 million (118 percent of the population); and social media identities grew to 6.73 million, equivalent to 64.9 percent of residents.
The startup and innovation ecosystem also saw notable progress in 2024, driven by expanding technology parks, increased engagement with private sector investors, and broader adoption of blockchain and digital currency solutions to enhance transparency and security in both public and private sector financial operations. 

A March 2025 presidential decree set forth the Artificial Intelligence Strategy for 2025–2028, marking a new phase of government support for AI research, development, and application across industries as Azerbaijan seeks to consolidate its emerging digital leadership. Azerbaijan opened the Artificial Intelligence Academy in Baku under the 2025–2028 AI Strategy to train specialists, drive digital transformation, and build sovereign AI capacity. Partnering with top U.S. universities like MIT, Stanford, and Carnegie Mellon, the Academy offers a curriculum blending academic study with practical projects.

Azerbaijan has adopted a proactive and rapidly developing cybersecurity stance, driven by a 2023-2027 national strategy to protect critical infrastructure, government systems, and personal data. The country has been recognized internationally for its advanced measures, scoring highly on the 2024 Global Cybersecurity Index after demonstrating strong legal, technical, and organizational capacities. This heightened focus is a response to the growing and evolving threat landscape, including targeted attacks on state institutions, which have prompted new laws and initiatives like mandatory audits for government systems and a “Cyber Hygiene Project” to raise awareness.

Leading Sub-sectors

E-governance has proven a successful area of collaboration between businesses and the Government of Azerbaijan. The State Tax Service moved tax payments online, the Customs Committee introduced electronic application and payment services, and the “Asan İmza” mobile electronic signature technology enabled the use of mobile phones as an electronic identity card and means of signing documents. U.S. businesses with similar solutions may find opportunities in these modernization and e-government efforts.

Azerbaijan is actively developing satellite services to build regional commercial telecommunications capacity. Azercosmos, Azerbaijan’s space agency, has launched three satellites since 2010, including two telecommunications satellites and an Earth observation satellite. In 2023, Azercosmos purchased two new satellites for Earth observation and will purchase a telecommunications satellite this year. Opportunities for U.S. companies include consulting services for ecosystem building in areas such as education and training initiatives, fostering innovation, startup and entrepreneurship support, and technical cooperation.

Additionally, development of cybersecurity, personal data protection, and data analytics capabilities are priorities for Azerbaijan, creating opportunities for U.S. companies to partner with both the public and private sector. 

Opportunities

In 2025, Azerbaijan’s Digital Development Concept is moving many public services online, creating space for U.S. firms to deliver full e-governance and e-commerce solutions that modernize tax, customs, and trade portals. At the Space Technology Conference (STC) – Central Eurasia 2025 in April, Azercosmos introduced two advanced satellites for high-precision Earth observation and improved regional connectivity, sparking demand for satellite design expertise, ground-station hardware, and data-analytics support.

The upcoming December 2025 Telecom & IT Expo (BAKUTEL) at the Baku Expo Center remains the region’s premier gathering for ICT vendors and investors targeting the Eurasian market. Meanwhile, a packed cybersecurity calendar including the International Conference on Computing and Information Technology (ICCIT) and PCI 2025 provides U.S. security firms with a stage to showcase managed security services, threat intelligence platforms, and training programs. Building on the first graduates of the Israel-Azerbaijan Cyber Security Center and guided by the 2023–2027 Information Security Strategy, the Azerbaijani government is now seeking U.S. academic and technical partners to establish ICT and cybersecurity training centers, opening doors for collaboration on curriculum design and workforce upskilling.

Resources

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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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