Islamic Development Bank backs multi-year food, energy security programs

The Islamic Development Bank implements multi-year financing programs to support food and energy security, Hojamurod Hojaev, Senior Manager for the Private Sector at the International Islamic Trade Finance Corporation (ITFC), said.

According to Report, Hojaev made the remarks at the Second Azerbaijan International Investment Forum (AIIF 2026) in Baku.

He said support for small and medium-sized enterprises can take various forms.

"Food and energy security are two key areas of our activity. As part of our support for SMEs, we provide various solutions, including funded or unfunded financing, import financing, export financing and structured trade finance solutions," he said.

Hojaev noted that for food and energy security programs, ITFC typically works with governments and signs multi-year framework agreements covering the next three or five years.

"These agreements help our import-dependent member countries secure financing in line with their national development strategies. The funds are usually directed toward imports of strategic commodities or products, thereby supporting energy and food security in those countries," he said.

Hojaev added that alongside direct support for member countries, ITFC also implements risk-sharing programs and is active in the syndication market.

"For example, of the $103 billion in financing we have supported, around 60% consists of funds mobilized from regional and international markets and channeled into large-scale transactions to support our member countries," he said.

He also highlighted ITFC's use of risk-sharing mechanisms.

"One of our latest achievements was during the Islamic Development Bank Group's annual meeting held in Baku in June this year, when we signed an unfunded risk-sharing agreement with the International Finance Corporation (IFC)," Hojaev said.

He noted that the agreement allows ITFC to use IFC guarantees, reach more member countries and support their food and energy security objectives.