Azerbaijan has benefited from oil export, which has been a fundamental contributor to the country's economic growth in recent decades. However, reliance on oil exports has left the country vulnerable to fluctuations in global commodity prices and created challenges for the sustainability of growth. The Government aims to diversify the economy and increase non-oil/gas exports to achieve high, sustainable, inclusive, and primarily private-led economic growth. Using the Growth Diagnostics Framework, this paper analyses the high cost of finance as one of the most binding constraints to non-oil/gas GDP growth and economic diversification opportunities in Azerbaijan. The analysis suggests that the Government and the Central Bank can work collaboratively and holistically by addressing various aspects of the financial and economic ecosystem to effectively reduce cost of finance, lower lending rates, and promote private investments.