He also plans to address hundreds of representatives from Muslim and Arab countries at an interfaith conference in Kazakhstan Wednesday, Peres's office said.

Peres was greeted by an honor guard after touching down at Baku's Heydar Aliyev International Airport, Azerbaijani state news agency Azertaj reported.

The 85-year-old president is traveling with a delegation of more than 60 representatives of Israeli government ministries and private companies seeking to tighten trade and economic ties with the two Caspian Sea states.

"The president's visit is aimed at strengthening and expanding Israel's strategic, diplomatic and economic ties with the two Muslim states that sit on the crossroads between Russia, China and Iran," his office said in a statement.

Israel and Azerbaijan share close economic ties, with trade turnover between the two countries reaching $180 million in the first quarter of 2009, the Israeli ambassador to Baku, Arthur Lenk, told local media before the visit.

Azerbaijani media reported that Israel, which imports 20% of its oil from Azerbaijan, will be seeking to boost energy cooperation during the visit.

Baku will be looking to increase cooperation in various high-tech fields and in importing Israeli agricultural products, media reported.

Azerbaijan, which is locked in a long-standing conflict with neighboring Armenia, may also be interested in buying more Israeli arms after several previous multimillion-dollar weapons deals.

Israel shares tight economic and military ties with Kazakhstan after Astana asked Israel to help it modernize its military and produce weapons.

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