Following Azerbaijan’s military victory in the Second Nagorno-Karabakh War in 2020, a new dawn emerged in Azerbaijan’s foreign policy. The South Caucasian country entirely based its foreign policy on a single issue that meant everything to the people of Azerbaijan for over thirty years. However, from looking for ways to explore economic means to attach investment to new security challenges, it is worth noting that Azerbaijan’s one of the most reliable allies since the early 2000s has been the State of Israel whose diplomatic corporation and technological marvels played a pivotal role in Azerbaijan’s victory during the Second Nagorno-Karabakh War.

Diplomatic relations

One of the most positive aspects of the bilateral relations enjoyed by Israel and Azerbaijan is based on both countries’ efforts to boost diplomacy based on cultural and financial virtues. For instance, the opening of a trade office in Tel Aviv signalled the importance of having an official diplomatic mission in the Jewish State. As risky as it was, the Azerbaijani side clearly emphasised the necessity of developing economic relations between Israel and Azerbaijan. This office was inaugurated by the former tourism minister of Israel Yoel Razvozov, and Azerbaijan’s Minister of Economy Mikayil Jabbarov who later met with the former finance minister Avigdor Liberman while stressing Azerbaijan’s ambition to establish macroeconomic stability, a favourable business environment as the rich resources of Azerbaijan create opportunities for foreign investment particularly for Israeli businesses. It was one of the moves that boosted a new area of cooperation in an innovative ecosystem for Azerbaijan.

Nevertheless, the most drastic development in Azerbaijan-Israel relations has undoubtedly been the establishment of the Azerbaijani Embassy in Israel. It marked a new period in Azerbaijan’s contemporary history since it became the very first Shiite-majority state to have an embassy in the Jewish State. It indicates and officialises the deepening mutual trust and willingness of bilateral corporations between Baku and Jerusalem (Tel Aviv). After the Abraham Accords, various parties interpreted Azerbaijan’s decision to open an embassy in Israel differently. For example, this move was cherished by the American Jewish Committee (AJC) which has enjoyed fruitful relations with the Azerbaijani Government since 1993 due to the country’s secular values to tackle anti-Semitism. AJC’s lobbying efforts for Azerbaijan’s rightful liberation of the Nagorno-Karabakh region also actualise their closeness to serve the interests of Baku. The American Jewry has always been a close friend of Azerbaijan and has done its best to protect the country from numerous sanctions and baseless condemnations. Their knowledge of geopolitics indicates how invested they are in trying to neutralise the Iranian Islamists’ plans to disturb this fruitful relationship. Iran’s vision of Azerbaijan is to integrate it into its network of global Shiite terrorism by stationing the likes of Imams such as Hassan Nasrallah and Abdul-Malik Badruldeen al-Houthi in the country. After supporting Armenia behind closed doors during the Nagorno Karabakh war from supplying the territories of the junta regime with weapons, petrol and gas to opposing the idea of the Zengezur corridor, Iran perceives Azerbaijan as the Zionist entity in the region. The opening of the Azerbaijani Embassy in Tel Aviv worsened Iran’s worries of more Azerbaijan-Israel corporation which already covers the areas of technology, security and agriculture. AJC is one of the most influential and biggest supporters of Azerbaijan as they believe Azerbaijan is the most reliable strategic partner for Israel and the USA against  Iran and the most pro-Iran and Russia country in South Caucasus Armenia

Recent developments

There are also recent developments in Azerbaijan-Israel relations. The security sector of Azerbaijan is largely invested in. That is why the signing of a Memorandum of Understanding between Israel’s AS Holdings and its subsidiary, Ari Arms and Azersilah is significant. This memorandum will help this invaluable partnership blossom on multiple levels as Azerbaijan will be able to obtain cutting-edge technology that meets NATO standards while Israeli firms strengthen their position in Azerbaijan where they can develop and test more weapons in geographies that are different to Israel’s landscape.

The Israeli companies also demonstrated their products at the ADEX24 exhibition where they managed to successfully gather attention. Following the exhibition, the Republic of Azerbaijan offered Israeli technology firms a tax break which had never applied to any other country before. It helps both countries as Israeli startups can now access a cheaper labour market while saving on high taxes and high energy costs while Azerbaijan can develop its non-oil sector.

As Israel remains Azerbaijan’s largest arms supplier, the corporation to export more weaponry from the Jewish State continues to rise. The military arsenal of Azerbaijan will now see an additional upgrade of Barak MX air defence systems from Israel. It will assist Azerbaijan to secure the country’s already well-protected aerospace while combatting different missile and aviation threats.

What the future holds for Azerbaijan and Israel?

Both Azerbaijan and Israel share mutual goals and ambitions in the long term. While Azerbaijan aims to sustain its neutrality and universality in global affairs, it also values the special relationship the country has with Israel. In the foreseeable future, Israel can alter the trajectory of regional politics with its war on multiple fronts that involve Iran. It is both in Israel and Azerbaijan’s interests to control the Zangezur Corridor which is logistically important for imports and exports that circulate between Israel and Azerbaijan while it is against Iran’s regional interests. It is also essential to mention the role of the military corporation from a different point of view. In addition to the military trainings between Azerbaijan and Türkiye who have participated in joint exercises to strengthen ties between Baku and Ankara, the State of Israel may also potentially help Azerbaijan in military training for the Azerbaijani counter terrorism units as well as in intelligence. Shin Bet and the Mossad can oversee the changes in Azerbaijan. Whether they are political or social. Against the Islamic Republic of Iran, the State of Israel is Azerbaijan’s most reliable defence guarantor as both the Jewish State and Azerbaijan share mutual interests in Iran. Due to Iran’s constant threats against Baku and Tel Aviv, Azerbaijan understands the dangers of bordering Iran which has always viewed Azerbaijan as a historical part of its imperial past. The Islamic State’s ambition is to influence different religious groups in Azerbaijan while disabling millions of South Azerbaijanis from accessing education in their native tongue within its designated borders. Israel knows how to carry out hybrid warfare that would turn out to be successful in favour of protecting Azerbaijan’s interests in the region. To have a better-equipped army, the IDF special units like the Sayeret Matkal can train Azerbaijani forces to be ready for combat to minimise casualties in possible conflicts. Lastly, Israel is a bridge between Azerbaijan and the West, when Azerbaijan was pressured, it was the Jewish lobbyists and community groups such as AJC, AIPAC and the American Sephardi Federation (ASF) who pressured the Congress not to act against Azerbaijan. When there is anti-Azerbaijan rhetoric in the US political class then Azerbaijan's strategic role for Israel might step into bettering relations between Baku and Washington DC.