Taleh Kazimov: Preparations underway for Azerbaijan's first sukuk issuance

Preparations are underway in Azerbaijan for the issuance of the country's first sukuk (Islamic bond), Governor of the Central Bank of Azerbaijan (CBA), Taleh Kazimov, stated at the 20th IsDB Global Forum on Islamic Finance in Baku within the framework of the Islamic Development Bank (IsDB) Group's 51st Annual Meeting, Report informs.

"To create a favorable environment for sukuk in Azerbaijan, we are implementing a joint project with the IsDB. The project is expected to establish a solid legal and regulatory framework, strengthen the capacity of financial institutions in Islamic finance, develop monitoring and evaluation mechanisms, and enable the issuance of Azerbaijan's first sukuk. This step will contribute to further diversification of the financial sector. We are committed to integrating Islamic finance into the country's financial architecture. We believe that ongoing reforms will deepen financial markets, attract foreign investment, and enhance the resilience of the financial system. Islamic finance, serving as a common financial language across regions, promotes cross-border investment and private sector development," Kazimov said.

He added that Azerbaijan is also developing sustainability-oriented Islamic finance instruments: "We are determined to contribute to realizing this vision. In developing the financial sector, we must also define which economy we are financing. Azerbaijan has integrated ESG (environmental, social, and corporate governance) principles into its national development strategy. In this regard, Islamic finance, which prioritizes financing the real sector, fully aligns with our development goals. By emphasizing social welfare and ethical investment, Islamic finance promotes sustainable development while limiting risks from speculative operations and excessive debt. Therefore, one of our main priorities is to develop sustainability-oriented Islamic finance instruments and mobilize capital to build more resilient and flexible economies."