Azerbaijan.US
Azerbaijan currently exports military and defense-related products to nearly 20 countries, President Ilham Aliyev said in an interview with local television channels.
According to Aliyev, Azerbaijan’s defense industry has undergone significant structural changes over the past two decades, including a gradual shift away from a fully state-controlled model toward greater participation by the private sector.
The president recalled that the Ministry of Defense Industry was established around 20 years ago by presidential decree and was initially viewed as a state monopoly. However, international experience later demonstrated that private companies play a leading role in defense production in many countries.
“As we involved private companies in this sector, we were able to reduce both the operational and financial burden on the state,” Aliyev said.
Private sector participation and investment
Aliyev noted that over the past two years, private companies have been granted expanded access to the defense industry alongside state-owned enterprises.
To date, 15 companies have received licenses to operate in the sector, and seven private firms have already begun producing military products, he said.
According to the president, approximately 1 billion manats were invested in the creation of new production facilities and the expansion of existing ones during 2024–2025, with about half of that amount coming from the private sector.
“This field remains relatively closed to the public due to its nature, but the scale of activity has expanded significantly,” Aliyev added.
Production and exports
Aliyev said that in 2025, Azerbaijan produced military products worth 1.4 billion manats. Most of the output was supplied to the Azerbaijani Armed Forces, while the remaining portion was exported.
“Today, Azerbaijan exports military products to nearly 20 countries,” he said.
Joint ventures with global defense companies
The president also highlighted the establishment of joint ventures with leading global defense industry companies in Azerbaijan.
“These projects include the production of unmanned aerial vehicles, artillery systems, weapons and ammunition,” Aliyev said, adding that cooperation with international partners is expected to further expand domestic manufacturing capacity.
