Country Profile: Azerbaijan

Azerbaijan, located in Southwestern Asia, is a secular nation with a rich cultural heritage, primarily populated by Turks and a majority Shia Muslim community. The country has undergone significant transformation since gaining independence from the Soviet Union in 1991, focusing on reducing poverty and improving infrastructure with oil and gas revenues. However, political corruption and authoritarian governance remain critical challenges. The ongoing conflict with Armenia over Nagorno-Karabakh has shaped its geopolitical landscape, further impacting its economy and security dynamics.

Geography

Azerbaijan is situated at the crossroads of Europe and Asia, bordered by the Caspian Sea, with its landscape including the Great Caucasus Mountains to the north and a wide flat lowland known as the Kur-Araz Ovaligi. The country has a total area of 86,600 sq km, making it slightly smaller than Maine. It experiences a dry, semiarid steppe climate and is landlocked, with the highest elevation at 4,466 m (Bazarduzu Dagi) and the lowest point at -28 m (Caspian Sea).

Area: 86,600 sq km
Land boundaries: 2,468 km (Armenia 996 km, Georgia 428 km, Iran 689 km, Russia 338 km, Turkey 17 km)
Natural resources: petroleum, natural gas, iron ore
Population density: highest in and around Baku

People and Society

Azerbaijan's population is estimated at 10,694,370 (2025 est.), with a gender distribution of about 50% male and female. The majority are ethnic Azerbaijanis (94.8%), with a small number of various other ethnic groups. The country boasts a high literacy rate of 99.8% and a median age of 34.8 years. The predominant religion is Islam, with 97.3% identifying as Muslim, mostly Shia.

Urban population: 57.6% of total population (2023)
Life expectancy: 75.9 years (2024 est.)
Birth rate: 11.13 births/1,000 population (2025 est.)
Total fertility rate: 1.69 children born/woman (2025 est.)

Economy

Azerbaijan's economy is classified as upper-middle-income and is heavily reliant on oil exports. The GDP (purchasing power parity) is projected to reach $225.198 billion in 2024, with an expected growth rate of 4.1%. The economy faces challenges such as a lack of diversification and the risks associated with fluctuating oil prices. However, recent ceasefire developments in Nagorno-Karabakh could provide new economic opportunities.

GDP per capita: $22,100 (2024 est.)
Unemployment rate: 5.6% (2024 est.)
Agricultural contribution to GDP: 5.7% (2024 est.)
Inflation rate: 2.2% (2024 est.)

Government

Azerbaijan operates as a presidential republic, with the capital city in Baku, which is notably the lowest capital city in the world at -28 m below sea level. The political system is characterized by an enduring leadership within the Aliyev family. The government has been criticized for its authoritarian practices and limited political pluralism.

Current President: Ilham Aliyev (since 31 October 2003)
Legislature: National Assembly (125 seats)
Voting age: 18 years
Constitution adopted: 12 November 1995

Military and Security

The Azerbaijani Armed Forces include Land, Air, and Navy Forces, engaging primarily in territorial defense due to ongoing tensions with Armenia. Military expenditures accounted for 5.1% of GDP in 2024. Azerbaijan has been modernizing its military capabilities through acquisitions from various countries, reflecting its strategic priorities within the region.

Active military personnel: estimated 100,000 (2025)
Compulsory military service: ages 18-30 for men
Military partnerships: significant ties with Israel and Turkey
Recent military conflict: regained control over Nagorno-Karabakh in September 2023

Energy

Azerbaijan is a notable player in the energy sector, primarily relying on fossil fuels for electricity generation, which constitutes 93.5% of its installed capacity. The country is also a significant producer of natural gas, with an output of 35.775 billion cubic meters in 2023.

Total petroleum production: 618,000 bbl/day (2023 est.)
Natural gas exports: 23.65 billion cubic meters (2023 est.)
Electricity access: 100% of the population (2022 est.)
Installed generating capacity: 8.383 million kW (2023 est.)

Environment

Azerbaijan faces several environmental challenges, including severe air and water pollution, largely due to industrial activities and agricultural practices. The country is a party to multiple international environmental agreements, aimed at addressing climate change and biodiversity.

Total water withdrawal: 11.962 billion cubic meters (2022 est.)
Carbon dioxide emissions: 38.892 million metric tons (2023 est.)
Urban population rate: 57.6% (2023)
Soil pollution issues: from oil spills and pesticides

Transportation

Transportation infrastructure in Azerbaijan includes a network of railways and a growing number of airports. The country boasts a total of 32 airports and has 2,944.3 km of railways, facilitating both domestic and international travel.

Merchant marine: 312 vessels (2023)
Civil aircraft registration code: 4K
Railways: total 2,944.3 km (1,767 km electrified)

Communications

Azerbaijan has a well-developed telecommunications sector, with a high penetration of mobile cellular services. As of 2024, there are 11.3 million mobile subscribers, reflecting broad access to communication services.

Internet users: 89% of the population (2023 est.)
Telephones - fixed lines: 1.33 million subscriptions (2024 est.)
Broadband - fixed subscriptions: 2.15 million (2023 est.)

Key Metrics

Metric	Value	Note
Population	10,694,370 (2025 est.)
Area	86,600 sq km
GDP (PPP)	$225.198 billion (2024)
Unemployment Rate	5.6% (2024 est.)
Energy Consumption per Capita	66.467 million Btu	(2023 est.)
Birth Rate	11.13 births/1,000	(2025 est.)
Life Expectancy at Birth	75.9 years	(2024 est.)
Literacy Rate	99.8%	(2023 est.)
Electric Access	100%	(2022 est.)