The analyst expects the 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. In early January 2026, the government revealed that Azerbaijan is set to attract nearly AZN4.6 billion ($2.7 billion) in investment for renewable energy projects over the next two years, during which 10 new solar and wind power plants are planned to be commissioned with participation from international financial organizations, according to the Ministry of Finance. These projects are expected to significantly increase the share of renewable energy in Azerbaijan’s total energy production capacity, helping to raise the country’s installed renewables share. The expansion is part of Azerbaijan’s broader strategy to diversify its energy mix and boost green investment, contributing to its transition toward sustainable energy sources.
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. In early January 2026, the government revealed that Azerbaijan is set to attract nearly AZN4.6 billion ($2.7 billion) in investment for renewable energy projects over the next two years, during which 10 new solar and wind power plants are planned to be commissioned with participation from international financial organizations, according to the Ministry of Finance. These projects are expected to significantly increase the share of renewable energy in Azerbaijan’s total energy production capacity, helping to raise the country’s installed renewables share. The expansion is part of Azerbaijan’s broader strategy to diversify its energy mix and boost green investment, contributing to its transition toward sustainable energy sources.
The Construction in Azerbaijan - Country Briefing (H1 2026) report provides detailed market analysis, information, and insights into Azerbaijan's construction industry, including:
- Azerbaijan's construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Azerbaijan's construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Report Scope
This report provides a comprehensive analysis of the construction industry in Azerbaijan. It provides:
- Historical (2021-2025) and forecast (2026-2030) valuations of the construction industry in Azerbaijan, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1. Executive Summary2. Construction Industry: At-a-Glance3. Latest news and developments4. Project analytics5. Construction Market Data6. Risk Profile
7. Appendix
List of Tables
List of Figures
