Azerbaijan developing halal economy, regional integration in parallel

Azerbaijan is developing the halal economy and regional integration in parallel, First Deputy Finance Minister Anar Karimov said.

Report informs that he made the remarks at the "Halal Economy for Sustainable Regional Integration" event held in Baku as part of the 51st Annual Meeting of the Islamic Development Bank (IsDB) Group.

"Current regional and global developments show that the values we constantly emphasize are facing serious pressure. Sometimes they are overlooked, and sometimes they are completely forgotten. That is why I believe that although regional integration is an important and effective tool, its goals cannot be achieved without the right approach, mutual trust and sustained attention," Karimov said.

He noted that, as a representative of the Finance Ministry, he would try to bring together regional integration and the halal economy, adding that stability and trust are the main pillars of these processes for Azerbaijan.

"Today, Azerbaijan has foreign exchange reserves exceeding $88 billion, which provides the country with strong macroeconomic stability and resilience. At the same time, we are seeing the development of Islamic finance products in the country. Islamic finance is not just an alternative financial model. It is based on the principles of partnership, risk sharing, support for real economic activity and long-term investment," he said.

The deputy minister added that Azerbaijan has the potential to become a regional center for Islamic finance.

"The development of Islamic finance is not only about creating a new market segment. For Azerbaijan, it is part of broader reforms aimed at diversifying the economy, expanding financial inclusion and supporting the private sector. Takaful, or Islamic insurance, services are already being offered in Azerbaijan. Financial institutions have begun introducing Islamic banking products such as murabaha and mudaraba. These are not merely financial instruments, but mechanisms that help strengthen a customer-oriented approach," Karimov said.

He noted that the authorities are receiving information from private sector partners about new Islamic finance initiatives, some of which, he said, could be announced in the near future.

"Azerbaijan's strategic location at the intersection of the East-West and North-South transport corridors gives the country important advantages in becoming a regional hub. This status not only accelerates national development, but can also contribute to strengthening regional halal integration," he said.

Karimov added that steps taken in this direction are of particular importance, as they promote trade, investment, technology transfer and the development of various industries, including agriculture.

"Cooperation with the IsDB has always been of special importance to us in this process. For more than 30 years, the Bank has been a reliable partner of Azerbaijan, making an important contribution to the country's economic development, as well as to the restoration and reconstruction of the liberated territories," he said.