Doing Business in Azerbaijan

Since the country gained independence, doing business in Azerbaijan has presented both opportunities and challenges. Foreign investment is actively encouraged, and expats will find a friendly and hospitable business environment. The country has shown strong economic growth, and its resilience has become a hallmark of the Azerbaijani market.

The economy’s backbone is still the oil and gas industry, where many foreigners secure work. That said, Azerbaijan has been steadily diversifying, with its non-oil sectors achieving impressive growth that far outpaces the oil sector’s growth. Four sectors lead this charge: agriculture, tourism, information technology, and transport/logistics. Baku, the capital, serves as the heart of Azerbaijani business – the most Western-influenced city where most expats are based.

While infrastructure has seen rapid development alongside improved services, the gap between rich and poor in Azerbaijan has widened. Wealth increasingly rests in the hands of a small elite, and corruption affects many business dealings.

Working in Azerbaijan 

Fast facts

Business hours

Business hours in Azerbaijan typically run Monday to Friday, 9am or 10am to 5pm or 6pm. Some government offices are open on Saturdays. Time flows differently here – Azeris take a relaxed approach to punctuality, and meetings may start late. Don’t be surprised when arriving within 30 minutes of the scheduled time is considered perfectly acceptable.

Business language

The official business language is Azerbaijani (Azeri), but Russian is widely spoken and often preferred in business settings. English usage is growing, particularly in the oil and gas sector, but it’s rather uncommon elsewhere. Consider hiring an interpreter for business meetings to manage language barriers smoothly.

Greeting

Greeting etiquette in Azerbaijan follows traditional patterns. Men typically exchange handshakes. As a businesswoman, you may also greet with a handshake, but expat men should wait for a local woman to extend her hand first – a small but meaningful gesture of cultural awareness.

Dress

The dress code for business in Azerbaijan trends toward Western-style clothing. For business settings, bring formal and conservative attire. Smart-casual works well for social occasions. First impressions carry significant weight in Azeri society.

Gifts

Gift-giving customs in Azerbaijan involve subtle rituals. Items won’t be opened immediately, but after the meeting concludes. The hospitality rule of three applies – offer gifts or food to business partners at least three times, and when receiving, accept only after the third offering. Quality items representing your country or company make appropriate gifts.

Gender equality

Gender equality in Azerbaijan presents a mixed picture. While there is legally guaranteed gender equality, practical reality differs sharply. Women hold just 22 percent of parliamentary positions and virtually no ministerial roles. Traditional gender roles are firmly entrenched in business culture.

Business cards

Business cards in Azerbaijan function best when presented with Azeri text on one side and English or Russian on the reverse. This practical approach bridges communication gaps and demonstrates respect for local business customs.

Business culture in Azerbaijan

Business culture in Azerbaijan reflects its deeply hierarchical society, where status carries significant weight in every interaction. This hierarchical structure permeates all business dealings. Decision-making often takes time, so cultivate patience when working in this market.

Relationships

Relationship building forms the cornerstone of Azerbaijani business success. Deals happen between people who know and trust each other rather than between companies. Networking proves indispensable, as personal recommendations drive business opportunities. Build rapport with local associates as a priority to earn their trust before business discussions begin.

Communication

Communication styles in Azerbaijan tend toward indirectness. Direct questions or criticisms might come across as confrontational. Local businesspeople often ‘talk around the issue’ using metaphors or stories to convey messages. Learn some key phrases in Azeri and Russian to demonstrate a commitment to your Azerbaijani business relationships. For important meetings, arranging interpreter services is a practical necessity.

Meetings

Meetings in Azerbaijan begin with an important preliminary step – sending an introductory letter outlining your company, history and visit purpose. When face-to-face, start with a casual conversation about family and general topics before addressing business matters. Building personal connections takes precedence over immediate business outcomes. Azeris are firm negotiators, so prepare to bargain. Meeting times serve as general guidelines rather than strict appointments, so expect some flexibility in schedules.

Dos and don’ts of business in Azerbaijan

• Don’t discuss politics with local business associates. Criticising the government should be avoided completely. The topic of Azerbaijan’s relationship with Armenia and the Nagorno-Karabakh situation is particularly sensitive.
• Do arrive on time for meetings, even when local associates might follow a more relaxed schedule. Your punctuality demonstrates professionalism and respect.
• Do learn basic phrases in Azeri or Russian. English remains limited outside the oil and gas sector, and this small effort makes a sizeable impression on potential business partners.
• Do initiate meetings with friendly conversation about non-business topics like family. This approach builds the foundation of trust necessary for successful business relationships in Azerbaijan.
• Do recognise that while most citizens identify as Muslim, Azerbaijan functions as a largely secular society where religion remains primarily a private matter.
• Do bring appropriate business gifts that reflect your home country or company. Avoid alcohol unless you’re certain the recipient drinks.