ICD Signs MOU to Introduce Islamic Banking in Azerbaijan

The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of Islamic Development Bank (IDB) Group, will introduce Islamic banking products in Azerbaijan and lobby for changes in country’s banking legislation in order to incorporate Islamic banking.

This will be realized in accordance with the Memorandum of Understanding (MOU) the ICD signed with the Association for Azerbaijan-Arab Countries Cooperation (AACC).

With the signing of the MOU, the two institutions agreed to cooperate to facilitate information and expertise exchange in order to develop effective cooperation, which may include organizing joint investment forums, professional programs, market research, workshops, publications, study tours, qualifications, and much more.

ICD’s CEO Khalid Al-Aboodi stated that this MoU is strategic for both parties. “We believe it will enhance cooperation between ICD and AACC in the Islamic business and finance sectors, which reflects ICD’s determination to deploy all efforts to encourage Islamic finance in the development of the private sector in Azerbaijan and in CIS region,” he added

Chairman of AACC Elshan Rahimov, for his part, added that the political will of Azerbaijan’s President Ilham Aliyev plays an important role in the formation of the friendly relations existing between Azerbaijan and Arab countries.

“We consider ICD as strategic partner in Arab region and by signing this MoU we cemented our relationships and it will help us to define our strategy for coming months,” he said.

AACC together with ICD plans to host First investment Forum for the investors from Arab countries in October 2017 in Baku, Azerbaijan.

The Islamic Development Bank is an international Islamic financial institution, established in accordance with Articles of Agreement done at the City of Jeddah, Kingdom of Saudi Arabia signed and ratified by all member countries.

The purpose of the Bank is to foster the economic development and social progress of member countries and Muslim communities individually as well as jointly in accordance with the principles of Islamic Law.

The decision to create the “Cooperation of Azerbaijan and Arab Countries” Public Association is timed to President Ilham Aliyev’s initiative that 2017 has been declared the Year of Islamic Solidarity in Azerbaijan, and Baku currently hosting the Islamic Solidarity Games.

The aim of establishment of the Association, in which, along with Azerbaijani businessmen, entrepreneurs from Arab countries will also be represented, is the strengthening of economic partnership between Azerbaijan and Arab countries through the promotion of mutual trade and investment, development of friendly relations between the states.

Azerbaijan is among several central Asian countries creating a more welcoming framework for sharia-compliant banking to attract investments and financing from the Islamic capital market. Islamic financial tools can become the channel through which assets of those, who do not want to use traditional financial services, can be involved in the economy.

Originally published on www.azernews.az