Located on the Eurasian plate, Azerbaijan is the largest as well as the most populated country in South Caucasus. After the First World War and the collapse of the Russian Empire, Azerbaijan was part of the Soviet Union for over 70 years.
Azerbaijan Today
Azerbaijan has been in constant conflict with neighbouring Armenia over the region of Nagorno-Karabakh which is predominantly populated by Armenians. When Azerbaijan gained independence in 1991, a war broke out and hostilities only ended in 1994 when Armenia had full control over the region.
Today Azerbaijan is known for its vast quantities of natural gas and oil which have contributed to economic growth and led to a reduction of poverty. The capital, Baku, has undergone rapid change and is now a highly developed modern city, but the surrounding villages still remain traditional. Doing business in this fast developing country can offer valuable opportunities. However, understanding its culture as well as the challenges the country faces is vital for successful business transactions with Azerbaijanis.
Azerbaijani Culture - Key Concepts and Values
Religion – Over 93% of Azerbaijan’s population is Muslim, mostly Shia. Consequently, Islam remains the dominant religion although the Soviet Union repeatedly tried to wipe it out. However, as laid out in the constitution, Azerbaijan is a secular state and everybody is free to choose any religion and express their own views. There are varying degrees to which Islam is practised and how it impacts on the daily lives of Azerbaijanis, but it is vital to remember its influence when working alongside your Azerbaijani business colleagues.
Indirect Communication – Azerbaijani culture is a rather high context culture relying on nonverbal cues, gestures, feelings and even eye contact to convey a message. For Azerbaijanis, indirect communication relates closely to saving face and being diplomatic. Therefore, it is best not to express opinions too directly. However, in a business context direct instructions are appreciated but formality should always be preserved.
Family and Gender Issues –For Azerbaijanis, education and family background are important to social status. In big cities families usually consist of the parents and children sometimes with grandparents, while in rural areas much more value is placed on the extended family. An ‘aila’ (or clan) consists of the members of the extended family and it is expected to work together as a unit. Although men and women enjoy equal rights, there are few women active in politics and management positions. Azerbaijanis encourage professional achievement but married women with children are still expected to stay home. Generally, political leaders are also often attributed roles described in family terms, such as the “son” or “father of the nation”.
Doing Business in Azerbaijan
Oil-rich Azerbaijan has always been known for its natural resources. Thanks to an oil boom in the 19th century it attracted foreign investors and is since one of the largest oil suppliers in the world. Azerbaijan’s economy achieved high economic growth in recent years which is mainly due to large oil and gas exports but also because of a booming construction, banking and real estate sector. The planned Southern Gas Corridor between Azerbaijan and Europe will pave the way for even more revenues from gas exports in the future. Living standards have improved significantly and large infrastructure projects have been funded by revenues from oil exports. However, corruption and inefficient economic policies remain challenges the government has to face.
Part 1 – Working in Azerbaijan: Working practices in Azerbaijan
Structure and hierarchy in Azerbaijani companies
Working relationships in Azerbaijan
Part 2 – Doing Business in Azerbaijan: Business practices in Azerbaijan
Azerbaijani business etiquette (do’s and don’ts)
DO shake hands when greeting your Azerbaijani colleagues. When greeting a female colleague, however, you should always wait for her to initiate the handshake.
DO offer food or gifts three times if your Azerbaijani counterparts do not accept them. It is polite to refuse invitations and gifts before accepting them.
DO dress formally and in a conservative manner as this shows respect and professionalism. Suits and ties in dark colours are appropriate for men while women should wear modest clothing that covers the arms and legs in particular.
DON’T correct or criticise your Azerbaijani associates in front of other business colleagues, as this may cause embarrassment and harm the personal relationship.
DON’T rush your Azerbaijani counterparts as they appreciate patience rather than punctuality.
DON’T use one finger to point. Instead use the whole hand when making gestures.
Azerbaijani Culture Quiz – True or False
1. Business meetings are usually interrupted for prayers.
2. When invited to your Azerbaijani counterpart’s home, it is polite to take your shoes off before entering the house.
3. Azerbaijanis tend to maintain direct eye contact when conversing.
4. When receiving a gift, you should open it immediately and express your gratitude.
5. In Azerbaijan, the OK sign (thumb and forefinger forming a circle) is an offensive gesture.
Azerbaijani Culture Quiz – Answers
1. False. Unlike in many other Muslim countries business meetings are not interrupted upon the call for prayer.
2. True.
3. True. Direct eye contact shows sincerity and interest.
4. False. Gifts are not opened right away and you should first refuse it and only accept it on the third offering mentioning that is has hopefully not inconvenienced the giver.
5. True.
Azerbaijan Today
Azerbaijan has been in constant conflict with neighbouring Armenia over the region of Nagorno-Karabakh which is predominantly populated by Armenians. When Azerbaijan gained independence in 1991, a war broke out and hostilities only ended in 1994 when Armenia had full control over the region.
Today Azerbaijan is known for its vast quantities of natural gas and oil which have contributed to economic growth and led to a reduction of poverty. The capital, Baku, has undergone rapid change and is now a highly developed modern city, but the surrounding villages still remain traditional. Doing business in this fast developing country can offer valuable opportunities. However, understanding its culture as well as the challenges the country faces is vital for successful business transactions with Azerbaijanis.
Azerbaijani Culture - Key Concepts and Values
Religion – Over 93% of Azerbaijan’s population is Muslim, mostly Shia. Consequently, Islam remains the dominant religion although the Soviet Union repeatedly tried to wipe it out. However, as laid out in the constitution, Azerbaijan is a secular state and everybody is free to choose any religion and express their own views. There are varying degrees to which Islam is practised and how it impacts on the daily lives of Azerbaijanis, but it is vital to remember its influence when working alongside your Azerbaijani business colleagues.
Indirect Communication – Azerbaijani culture is a rather high context culture relying on nonverbal cues, gestures, feelings and even eye contact to convey a message. For Azerbaijanis, indirect communication relates closely to saving face and being diplomatic. Therefore, it is best not to express opinions too directly. However, in a business context direct instructions are appreciated but formality should always be preserved.
Family and Gender Issues –For Azerbaijanis, education and family background are important to social status. In big cities families usually consist of the parents and children sometimes with grandparents, while in rural areas much more value is placed on the extended family. An ‘aila’ (or clan) consists of the members of the extended family and it is expected to work together as a unit. Although men and women enjoy equal rights, there are few women active in politics and management positions. Azerbaijanis encourage professional achievement but married women with children are still expected to stay home. Generally, political leaders are also often attributed roles described in family terms, such as the “son” or “father of the nation”.
Doing Business in Azerbaijan
Oil-rich Azerbaijan has always been known for its natural resources. Thanks to an oil boom in the 19th century it attracted foreign investors and is since one of the largest oil suppliers in the world. Azerbaijan’s economy achieved high economic growth in recent years which is mainly due to large oil and gas exports but also because of a booming construction, banking and real estate sector. The planned Southern Gas Corridor between Azerbaijan and Europe will pave the way for even more revenues from gas exports in the future. Living standards have improved significantly and large infrastructure projects have been funded by revenues from oil exports. However, corruption and inefficient economic policies remain challenges the government has to face.
Part 1 – Working in Azerbaijan: Working practices in Azerbaijan
Structure and hierarchy in Azerbaijani companies
Working relationships in Azerbaijan
Part 2 – Doing Business in Azerbaijan: Business practices in Azerbaijan
Azerbaijani business etiquette (do’s and don’ts)
DO shake hands when greeting your Azerbaijani colleagues. When greeting a female colleague, however, you should always wait for her to initiate the handshake.
DO offer food or gifts three times if your Azerbaijani counterparts do not accept them. It is polite to refuse invitations and gifts before accepting them.
DO dress formally and in a conservative manner as this shows respect and professionalism. Suits and ties in dark colours are appropriate for men while women should wear modest clothing that covers the arms and legs in particular.
DON’T correct or criticise your Azerbaijani associates in front of other business colleagues, as this may cause embarrassment and harm the personal relationship.
DON’T rush your Azerbaijani counterparts as they appreciate patience rather than punctuality.
DON’T use one finger to point. Instead use the whole hand when making gestures.
Azerbaijani Culture Quiz – True or False
1. Business meetings are usually interrupted for prayers.
2. When invited to your Azerbaijani counterpart’s home, it is polite to take your shoes off before entering the house.
3. Azerbaijanis tend to maintain direct eye contact when conversing.
4. When receiving a gift, you should open it immediately and express your gratitude.
5. In Azerbaijan, the OK sign (thumb and forefinger forming a circle) is an offensive gesture.
Azerbaijani Culture Quiz – Answers
1. False. Unlike in many other Muslim countries business meetings are not interrupted upon the call for prayer.
2. True.
3. True. Direct eye contact shows sincerity and interest.
4. False. Gifts are not opened right away and you should first refuse it and only accept it on the third offering mentioning that is has hopefully not inconvenienced the giver.
5. True.
