THE STRATEGIC CONTRIBUTION OF THE OIL SECTOR TO THE MODERNIZATION OF THE AZERBAIJANI ECONOMY

Abstract

The article analyzes the strategic role of the oil sector in the economic development of Azerbaijan and its impact on the modernization processes. The study systematically examines the oil strategy implemented in the post-independence period, the “Contract of the Century”, the establishment of the State Oil Fund and the impact of oil revenues on economic stability. At the same time, the impact of oil revenues on GDP, investment flows and socio-economic development indicators is assessed based on empirical data. The impact of oil revenues on GDP growth, foreign investment dynamics and macroeconomic stability is assessed based on statistical indicators. The study found that since 1995, the oil sector has become the main driving force of Azerbaijan’s economic development. The article also interprets the directions of economic diversification, green energy and digital transformation within the framework of the document “Azerbaijan 2030: National Priorities” as a continuation of the oil strategy. As a result, it is justified that the Azerbaijani economy is gradually moving away from oil dependence and towards a sustainable development model. It shows that Azerbaijan's oil strategy is not 
limited to the energy sector, but is also a strategic mechanism affecting all areas of socio-economic development.