Azerbaijan identifies priorities for next five years of cooperation with IsDB

Azerbaijan and the Islamic Development Bank (IsDB) have identified key priorities for cooperation over the next five years.

A memorandum on preparing a new Member Country Partnership Strategy for 2027–2031 was signed on the sidelines of the IsDB Annual Meetings in Baku.

Under the agreement, the parties plan to expand cooperation in economic diversification, green and sustainable infrastructure, regional connectivity, human capital development, digital transformation and Islamic finance.

Economy Minister Mikayil Jabbarov said most of the agreements signed during the forum were focused on private sector development. According to him, discussions and agreements covered infrastructure, real estate investments, energy projects, banking and financing for small and medium-sized enterprises.

He said financing for the Karabakh irrigation canal project exceeds $450 million. In addition, the Sumgait wastewater project is valued at more than $100 million, while another agreement covers water supply to 73 villages and settlements on the Absheron Peninsula.

Jabbarov said Azerbaijani banks had received credit lines in both local currency and U.S. dollars for onward lending to small and medium-sized businesses. A separate financing facility was also provided to the Azerbaijan Business Development Fund.

He added that Azerbaijan, together with the Central Bank and IsDB institutions, is assessing opportunities for the use of Islamic finance instruments. The main objective, he said, is to expand access to finance for economic actors in the country.

N.Təbrizli