Azerbaijan Defense Industry and Military Procurement Profile
Azerbaijan is where Turkish defense industry runs its deepest alliance: the 2020 Karabakh War’s TB2-written outcome was codified by the 2021 Shusha Declaration, Baykar is now building a production facility in Sumgait, and ASELSAN and Roketsan are permanent fixtures of Baku’s procurement architecture. This country file maps the procurement structure of the South Caucasus’s biggest defense spender, updated as developments reach the public record.
Azerbaijan’s Defense Profile in 60 Seconds
- 2026 defense+security budget: ~$5.1B — about 21% of the state budget, the region’s highest
- Active personnel: ~64,000-80,000 (sources vary) plus ~300,000 reserves
- Shusha Declaration (15 June 2021): alliance with Turkey including mutual assistance
- IDEF 2025 memorandum (22 July 2025): “attack on one counts against the other,” ratified by parliament
- JF-17C Block III: $4.6B/40 aircraft with Pakistan — Pakistan’s largest-ever defense export
- Baykar established a production company in Sumgait; Akıncı in the fleet, TB2 the war’s symbol
Force Structure and the Post-2020 Transformation
The Azerbaijani Armed Forces comprise the Land Forces, an Air Force that includes air defense, and the Caspian Navy, complemented by Interior Ministry Internal Troops and the State Border Service. Since the 2020 victory the military has been restructuring along the Turkish model: commando brigades stood up, joint exercise tempo raised. In the 2026 draft budget, defense and national security together reach about $5.1 billion — 21 percent of the state budget, by far the heaviest defense burden in the South Caucasus relative to GDP.
The Defense Industry: From Ministry to the Baykar Plant
The Ministry of Defense Industry (founded 2005) runs more than 20 production units. AZAD Systems, whose UAV line began with Israel’s Aeronautics, now produces the Zarba loitering/reconnaissance UAV and is building a new plant at Buzovna; 60 co-produced Orbiters had been delivered by 2025. ADI unveiled the indigenous Khatai-1 armored personnel carrier in 2025. The most strategic development is on the Turkish front: Baykar Technology Azerbaijan LLC was established in the Sumgait Industrial Park, aiming to move UAV production onto Azerbaijani soil. Baku’s ADEX fair opens its 2026 edition on 30 September.
Procurement Picture
| Supplier | Systems | Status |
| Turkey | TB2, Akıncı, ASELSAN/Roketsan systems | TB2 delivered and combat-proven; Akıncı acquisition confirmed February 2024; ASELFLIR-500 and TOLUN deals at ADEX 2024 |
| Pakistan | JF-17C Block III | 16 aircraft/$1.6B in February 2024; expanded to 40 aircraft/$4.6B in June 2025; first deliveries 2025 |
| Israel | Harop, Barak-8, LORA, Hermes 900/450, SkyStriker | 69% of imports in 2016-2020; key role in the 2023 Karabakh operation |
| Belarus | Polonez MLRS | 2018-2019, 10 systems |
| Russia | Legacy armor/artillery inventory | Share effectively collapsed after 2020 |
Relations with Turkey: From Alliance to Co-Production
In the 2020 Karabakh War, TB2s — by Azerbaijani figures — destroyed hundreds of targets including 89 T-72s, 131 artillery pieces, 61 multiple rocket launchers and 15 air-defense systems; the system was paraded at Baku’s Victory Parade on 10 December 2020. The Shusha Declaration, signed by Aliyev and Erdoğan in Shusha on 15 June 2021, established an alliance framework covering mutual assistance in case of attack, military modernization and joint defense-industry R&D and production. The Memorandum on Strengthening Mutual Military Security, signed in Istanbul at IDEF 2025 on 22 July 2025, was ratified by Azerbaijan’s parliament. At ADEX 2024, ASELSAN signed agreements covering ASELFLIR-500 and TOLUN procurement plus electronic warfare co-development, smart-munitions co-production and a munitions production line. At least five joint exercises ran in 2024-2025, and Azerbaijani troops joined EFES-2026 in May 2026. For the procurement desk’s current face, see the person file: Who is Agil Gurbanov?
Possible matches for Turkish industry — this is Envanter Medya’s open-source editorial assessment, not confirmed sales information. The Shusha framework and the Sumgait plant show a relationship evolving from sales to co-production; the planned Turkish avionics integration on the JF-17s is a concrete third-country channel. Caspian naval modernization and layered air defense (low-to-medium altitude) are open technical-class headings. Azerbaijan’s participation in the regional defense pacts floated in August 2026 remains speculation. No official negotiations on these threads are on public record.
Frequently Asked Questions
How big is Azerbaijan’s defense budget?
The 2026 draft puts defense plus national security at ~$5.1 billion — about 21% of the state budget and 4.5-5% of GDP.
What does the Shusha Declaration provide?
Signed 15 June 2021, it establishes an alliance with mutual assistance in case of attack, military modernization and joint defense-industry R&D/production.
What did the TB2 do in the war?
By Azerbaijani figures, TB2s destroyed hundreds of targets in 2020 — 89 tanks, 131 guns, 61 MLRS, 15 air-defense systems — becoming the war’s symbol.
Will Baykar produce in Azerbaijan?
Baykar Technology Azerbaijan LLC has been established in the Sumgait Industrial Park with the goal of localizing UAV production; a co-production MoU was signed in April 2023.
Where does the JF-17 deal stand?
The February 2024 deal for 16 aircraft was expanded in June 2025 to 40 aircraft for $4.6 billion; first deliveries began in 2025, with Turkish avionics integration planned.
What is Israel’s role?
It supplied 69% of imports in 2016-2020; Harop, Barak-8 and the Hermes family are in inventory. Since 2020 the Turkey-Israel-Pakistan axis dominates procurement.
Sources and Verification Note
- president.az — full text of the Shusha Declaration
- SDE/TSKGV — IDEF 2025 memorandum and ratification; ADEX 2024 ASELSAN agreements
- OC Media — 2026 draft budget
- SIPRI — 2016-2020 supplier shares
- Overt Defense, Army Recognition — JF-17 expansion
- Caspian Post, Defence Turkey — AZAD Systems, Baykar Sumgait
- Image: Bayraktar TB2 at the 10 December 2020 Victory Parade in Baku — Press Service of the President of Azerbaijan, CC BY 4.0, Wikimedia Commons
This file separates agreement-level facts (Shusha, the IDEF memorandum, ADEX deals) from speculation (regional pact participation); single-source claims (Barak-8/Iskander) are excluded.
Last updated: 18 August 2026 — updated as new contacts, agreements or deliveries emerge.
