Key market opportunities in Azerbaijan’s construction industry include strong growth driven by investments in oil, gas, renewable energy, and transport infrastructure. Significant opportunities exist in non-oil sectors, renewable energy expansion, and projects like urban development and desalination plants, reflecting economic diversification.
Dublin, March 12, 2026 (GLOBE NEWSWIRE) — The “Azerbaijan Construction Market Size, Trends, and Forecasts by Sector – Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (H1 2026)” report has been added to ResearchAndMarkets.com’s offering.
Construction industry in Azerbaijan to expand by 3.5% in real terms in 2026, supported by investments in oil and gas, renewable energy, and transport infrastructure projects, coupled with rising investment in the non-oil sector.
At the First Azerbaijan International Investment Forum, held in Baku in September 2025, nearly 1,000 investment documents were signed for projects with a total value exceeding AZN17 billion ($10 billion). Of this amount, over AZN11.9 billion ($7 billion) is designated for non-oil sector projects.
Key agreements include a AZN1.2 billion ($700 million) joint venture between the local manufacturing company Dashkasan Iron Ore, and the specialized investment fund – Fonte GreenMet Investments Fund – for the construction of HBI plant in Shamkir district, to produce high-grade hot briquetted iron production; a AZN691.9 million ($407 million) public-private partnership with a Saudi Arabian power generation company ACWA Power for a Caspian Sea seawater desalination plant; and a AZN8.5 billion ($5 billion) cooperation deal with the UAE based real estate company Modon Holding to develop a “City within a City” around Lake Boyukshor.
In addition, numerous Memorandums of Understanding (MoUs) and partnerships were signed to boost electric bus production, create a Green Energy Industrial Park, establish a World Economic Forum Affiliate Center, attract up to AZN850 million ($500 million) in tourism and healthcare investments, and advance energy sector collaboration – all reflecting Azerbaijan’s effort to diversify its economy and strengthen foreign investment ties.
Over the remainder of the forecast period, the construction industry is expected to register an annual average growth rate of 3.2% between 2027-30, supported by investments in transport and renewable energy infrastructure projects, coupled with the government’s plan to increase the installed renewables share from 18.8% in 2025 to 33.7% by 2027, 38% by 2030, and 42.5% by 2035.