BAKU, Azerbaijan, October 22. Azerbaijan could issue its first sukuk in the form of a green sukuk in 2027, while leasing is one of the most promising sectors for introducing Islamic finance in the country, Ozal Talibli, head of finance, investment and operations at PASHA Capital, said at the 3rd Islamic Finance Forum on Thursday, Trend’s correspondent reports from the event.
According to Talibli, many elements of leasing, including lease agreements, asset registration, insurance and collateral arrangements, are already widely used in existing leasing practices. This could facilitate the introduction of Islamic finance.
He emphasized the importance of ensuring tax, monetary and insurance neutrality to support the development of Islamic finance.
“Public familiarity with leasing products creates conditions for the rapid adoption of this model in the country. One of the fastest-growing segments of the international financial sector is the sukuk market. In 2025, global sukuk issuance reached approximately $264.8 billion, setting a record. More than $100 billion of that amount was issued in foreign currencies on international markets.
“According to Fitch Ratings, more than 80% of the sukuk it rated in 2025 had investment-grade ratings. This demonstrates that sukuk is no longer a narrowly defined religious instrument but an investment vehicle for institutional investors,” he said.
Talibli also noted that global issuance of green and sustainable sukuk increased by more than 60% in 2025, reaching a record of approximately $18.5 billion.
“Given Azerbaijan’s priorities in green finance and sustainable development, the country could issue its first sukuk in the form of a green sukuk as early as next year. The most important prerequisite is to complete the development of the legal framework.
“PASHA Capital is actively working to make sukuk instruments available to citizens. One of the company’s objectives is to help local companies access international capital markets and secure international recognition and financing through sukuk issuances,” he said.
