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Saudi-Azerbaijan Strategic Partnership to Boost Economy, Renewable Energy

Azerbaijani Deputy Foreign Minister Yalchin Rafiyev (Asharq Al-Awsat)
Azerbaijani Deputy Foreign Minister Yalchin Rafiyev (Asharq Al-Awsat)
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Saudi-Azerbaijan Strategic Partnership to Boost Economy, Renewable Energy

Azerbaijani Deputy Foreign Minister Yalchin Rafiyev (Asharq Al-Awsat)
Azerbaijani Deputy Foreign Minister Yalchin Rafiyev (Asharq Al-Awsat)

Azerbaijan stressed the importance of strengthening its strategic partnership with Saudi Arabia, especially in trade, economy, and renewable energy, to boost regional and international cooperation.

Azerbaijani Deputy Foreign Minister Yalchin Rafiyev said both countries are exploring new opportunities for cooperation, particularly in renewable energy and climate.

Rafiyev highlighted the annual consultations between Riyadh and Baku as an important way to strengthen bilateral ties.

Speaking to Asharq Al-Awsat on the sidelines of the COP 16 climate conference in Riyadh, Rafiyev said he discussed joint projects with Saudi officials.

Rafiyev also pointed to the success of renewable energy cooperation, with Saudi firm ACWA Power leading a 240-megawatt offshore wind farm project in Azerbaijan.

At the conference, ACWA Power signed an agreement with UAE’s Masdar and Azerbaijan’s SOCAR Green to develop 3.5 gigawatts of offshore wind in the Caspian Sea, the first such project in Azerbaijan.

He added that Azerbaijan is becoming a key regional hub, linking the Gulf to Central Asia, and plays an active role in international climate finance, having led the Non-Aligned Movement for over four years.

Azerbaijan is working to expand its partnerships with Saudi Arabia, capitalizing on its strategic location and growing role in the global economy, said Rafiyev.

At the COP 16 climate conference in Riyadh, Rafiyev highlighted the importance of the recent COP29 conference in Baku, which helped strengthen ties between the two countries.

“The conference succeeded with Saudi support, leading to a new vision for cooperation that is currently being explored,” he said.

Rafiyev emphasized Azerbaijan’s role as a gateway for Gulf countries to Central Asia, playing a key part in linking these regions.

He also pointed to Azerbaijan’s contribution to international climate negotiations, securing a $300 billion financial target from developed nations to support developing countries.

Reflecting on Azerbaijan’s global influence, Rafiyev noted the country’s leadership of the Non-Aligned Movement for over four years.

“During our leadership, we showed our ability to play a significant global role,” he said.

He also spoke about Azerbaijan’s efforts during the COVID-19 pandemic, where the country helped unite developed and developing nations.

“We turned pandemic challenges into opportunities for cooperation, gaining unanimous support for a resolution at the UN,” Rafiyev added.

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Gulf States Expand Tourism Footprint as Emerging Markets Gain Momentum at Arabian Travel Market in Dubai

Saudi Arabia’s participation in the Arabian Travel Market (Asharq Al-Awsat) 
Saudi Arabia’s participation in the Arabian Travel Market (Asharq Al-Awsat) 
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Gulf States Expand Tourism Footprint as Emerging Markets Gain Momentum at Arabian Travel Market in Dubai

Saudi Arabia’s participation in the Arabian Travel Market (Asharq Al-Awsat) 
Saudi Arabia’s participation in the Arabian Travel Market (Asharq Al-Awsat) 

Emerging tourism markets are carving out space on the global travel map, drawing attention for their dynamic participation at the Arabian Travel Market (ATM) in Dubai, while Gulf nations—particularly Saudi Arabia and the United Arab Emirates—are accelerating their expansion in the tourism sector.

As global travel gathers momentum, Gulf-based airlines are eyeing new investment opportunities despite lingering global economic uncertainty, driven by shifting trade patterns and evolving consumer behavior in the international travel landscape.

The 32nd edition of ATM opened in Dubai with more than 2,800 exhibitors and nearly 55,000 industry professionals from 166 countries. Held under the theme “Empowering Innovation: Transforming Travel Through Entrepreneurship,” the event emphasized building a more sustainable and globally integrated travel industry.

The exhibition reflects the profound changes shaping global tourism, with cross-border and sustainable connectivity now central to the industry’s development. It also highlights the growing influence of emerging markets and the increasing role of Gulf investments in tourism and aviation.

During its participation in ATM, the Saudi Tourism Authority showcased the Kingdom’s accelerating tourism growth, revealing it had attracted approximately 116 million visitors in 2024—a 6.4% increase from the previous year. Fahd Hamidaddin, the authority’s CEO, said Saudi Arabia aims to strengthen its position as a unique summer destination through a robust calendar of events and strategic private-sector partnerships. The focus is on key source markets across the Middle East, Asia, and Africa.

UAE Tourism Supports Economic Diversification

UAE Minister of Economy and Chairman of the Emirates Tourism Council, Abdulla bin Touq Al Marri, emphasized the country’s growing stature as a global tourism hub. He pointed to the launch of major national initiatives that align with best international practices, support economic diversification, and attract investment in hospitality, aviation, and travel.

According to bin Touq, the UAE’s tourism sector continued to deliver strong performance in 2024. Hotel revenues rose to AED 45 billion (USD 12.2 billion), up 3% from 2023, while occupancy rates reached 78%, among the highest globally. The country added 16 new hotels last year, increasing the total to 1,251, with room capacity growing 3%. Hotel guests rose 9.5% year-on-year to 30.8 million, achieving 77% of the UAE’s 2031 national tourism target seven years ahead of schedule.

Gulf Airlines Gear Up for Growth

Etihad Airways CEO Antonoaldo Neves said the airline has yet to feel any major impact from global trade tensions, with seat occupancy remaining strong despite global uncertainty. Etihad plans to add 20 to 22 aircraft in 2025, with the goal of expanding its fleet to more than 170 aircraft by 2030. Neves also noted that the euro’s recent appreciation could boost European travel to the Gulf.

Etihad, which currently operates a fleet of around 100 aircraft, has significant financial flexibility, with 60% of its fleet debt-free. “If a crisis arises, we can ground planes and save up to 75% of operating costs,” he noted.

The airline plans to receive 10 Airbus A321XLR jets starting in August, in addition to 6 Airbus A350s and 4 Boeing 787s. Neves said while delays in aircraft delivery remain a challenge, they have not altered Etihad’s growth strategy. He also confirmed ongoing discussions with manufacturers and signaled interest in Boeing aircraft originally designated for China but now potentially available due to trade restrictions.

Riyadh Air Nears Major Aircraft Deal

Tony Douglas, CEO of Saudi Arabia’s Riyadh Air, said the new airline is open to acquiring Boeing jets initially built for the Chinese market if trade disputes disrupt those deliveries.

Douglas said global economic headwinds have not affected demand and announced plans to finalize a major widebody aircraft deal soon. The airline aims to expand its workforce to around 1,000 employees in the coming year, as it prepares to begin operations in the fourth quarter of 2025.

Commenting on broader regional developments, Douglas said the resumption of flights from the UAE to Syria and the use of Syrian airspace “may be an early sign that conditions are improving.”