Azerbaijan Joins “Islamic Banking and Finance” Training in Türkiye

(Baku, AZERTAC) – In a noteworthy endeavor to enhance the skills and understanding of Islamic banking and finance among professionals, Azerbaijan joins “Islamic Banking and Finance” Training in Türkiye. Held recently in Istanbul, this specialized program represents a collaborative effort between Azerbaijan’s Small and Medium Business Development Agency (KOBİA) and the Participation Banks Association of Türkiye. It aimed at enriching the expertise of financial professionals in the increasingly significant sector of Islamic finance, reflecting a growing global trend towards ethical and religious-compliant financial services.

The training attracted various participants, including key figures from the Ministry of Economy, the Central Bank of Azerbaijan, the Entrepreneurship Development Fund, KOBİA, and leaders from top Azerbaijani banks. This diverse attendance underscores the comprehensive impact and wide-reaching interest in Islamic finance across different sectors of Azerbaijan’s economy.

Throughout the program, the curriculum delved deep into the principles that differentiate Islamic banking from traditional financial systems. Unlike conventional banking, Islamic banking adheres to the laws of Sharia, which prohibits interest (riba) and emphasizes risk-sharing between the creditor and the borrower. Trainees learned about various Islamic financial instruments like Sukuk (Islamic bonds), Murabaha (cost-plus financing), and Musharaka (joint venture financing), which are designed to comply with Islamic principles while providing viable financial solutions.

The training also covered effective methods for collecting and managing Zakat, one of the five pillars of Islam that requires Muslims to give a portion of their wealth to the needy. This segment of the program highlighted the role of financial institutions in facilitating these religious obligations, which not only comply with spiritual mandates but also foster a sense of community and social welfare.

Furthermore, the program included practical sessions where participants met with regulators and seasoned professionals from Türkiye’s financial markets. These interactions were crucial in providing insights into the regulatory frameworks that support the operation of Islamic banks and financial institutions. Participants discussed best practices, regulatory compliance, and the challenges faced in aligning financial services with ethical and religious directives.

As the program concluded, certificates were awarded to the attendees, marking their successful completion of the training and their readiness to apply their enhanced skills in their respective organizations. This certification process is not merely a formal ending but a gateway to new opportunities in the burgeoning field of Islamic finance.

This initiative is part of a broader movement toward integrating Islamic financial practices into the mainstream financial systems of Azerbaijan and Türkiye. The growing interest in Islamic finance is driven by its appeal as an ethical financial system that not only aligns with religious values but also offers robust solutions to economic issues. The collaboration between KOBİA and the Participation Banks Association of Türkiye is a testament to the shared vision of fostering economic growth through innovative and compliant financial practices.

Looking ahead, the success of ‘Azerbaijan Joins “Islamic Banking and Finance” Training in Türkiye’ is expected to encourage more such initiatives, not only enhancing the skills of financial professionals but also paving the way for a more inclusive financial sector that respects and integrates diverse financial practices. As Islamic finance continues to grow, its impact on global financial markets is likely to increase, presenting new opportunities and challenges that will require ongoing education, adaptation, and cooperation between nations like Azerbaijan and Türkiye.