According to the report "Strengthening Economic Cooperation Between Kazakhstan and Azerbaijan", despite the positive dynamics in bilateral trade, certain sectors still exhibit untapped potential, Kazinform reports.

"The expanding economic partnership between Kazakhstan and Azerbaijan is based on a solid foundation of strategic relations and deepening allied cooperation, fully supported by the leaders of both countries," states the report prepared by the Institute of Development and Diplomacy (IDD) at ADA University and the Astana International Financial Centre (AIFC).

Experts highlight that both nations serve as key nodes along the Silk Road and are pursuing a coordinated geoeconomic strategy aimed at economic diversification, expansion of foreign trade flows, and enhancement of transregional connectivity.

The report notes that despite favorable trends in bilateral trade, significant untapped potential remains in sectors such as hydrocarbons and renewable energy, transport and logistics, financial services, telecommunications, and agri-food trade.

Experts recommend continued investment in infrastructure development.

"The development of the Middle Corridor and the construction of an undersea fiber-optic communication line across the Caspian Sea have the potential to further solidify Kazakhstan and Azerbaijan’s positions as key transit hubs between Asia and Europe," the report states.

They also advise promoting green energy and agricultural trade.

"Increasing exports of Kazakh oil via Azerbaijani territory, launching projects for the transmission of renewable electricity, improving the efficiency of agricultural trade, and deepening financial cooperation will contribute to the establishment of a sustainable long-term economic model," the analysts conclude.