Bloody wars between Arab Muslims and Khazar Turks in the Caucasus continued for a more than a hundred years from the mid 7th century to the end of the 8th century CE. The Khazar state survived but had to withdraw from Caucasian Albania, the present territory of the Republic of Azerbaijan. However, the Khazars managed to expand their political control over the trade routes north-east and north-west of the Caucasian ridge. A trade partnership was established between former rival powers in the region that allows us to call the period after the end of the Arab-Khazar wars up to the time of the collapse of the Khazar state in the middle of the 10th century an era of Arab-Khazar partnership and domination of the Silk Road. This article highlights the impact made by geopolitical shifts in the regions of the time upon international trade tracks and particularly on the development of trade facilities, infrastructure, and local production in Azerbaijan, which became a major transit country of goods from the north to markets in the Muslim Near East.