Day: February 27, 2025
The past five years have marked a growing Gulf economic presence in the South Caucasus. Saudi Arabia and the United Arab Emirates have expanded their regional footprint through equity investments in Azerbaijan and Georgia’s transport and renewable energy sectors. Armenia has been a weak link in interregional chains due to conflict with Azerbaijan and its isolation from regional connectivity frameworks. Yet recently, Yerevan managed to establish profitable trade links to the Gulf, largely thanks to Western sanctions on Russia. The South Caucasus trio sees financial flows from the Gulf as necessary for successful economic diversification. For the Gulf countries, the South Caucasus provides an alternative market for strategic investments, which aligns with their long-term goals of projecting geo-economic influence and boosting trade.