The digital sector still accounts for a relatively small share of Azerbaijan’s economy, but recent figures show that it is growing significantly faster than the economy as a whole. The results for January-August 2026 are particularly notable in terms of investment: investment in the information and communications sector increased by 49.4% in real terms to ₼320 million ($188.24 million). During the same period, the value added generated by the sector increased by 10.7% to ₼1.775 billion ($1.04 billion).

These two figures actually illustrate the main question facing Azerbaijan’s digital economy. On the one hand, investment is increasing by 49.4%. On the other hand, the sector’s real value added is growing by 10.7%. In other words, the increase in capital investment is considerably higher than the sector’s current economic growth. This is not a problem in itself. In particular, returns from infrastructure-related investments may materialize over years rather than immediately. The main issue is how much additional value, productivity, new services and exports the ₼320 million ($188.24 million) investment can generate in the coming years.

The information and communications sector currently accounts for 2% of Azerbaijan’s total GDP. In........

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