BAKU, Azerbaijan, May 7. The Islamic Development Bank (IsDB) Group’s Annual Meetings in Baku will showcase Azerbaijan’s achievements in economic development, Chairman of the Islamic Development Bank (IsDB) Group Dr. Muhammad Sulaiman Al Jasser said in an exclusive interview with Trend, as he visited Azerbaijan.
“This visit is significant, because it is the culmination of the preparations for the Annual Meetings in June. It will be the second time the Islamic Development Bank holds its annual meetings in Baku. Of course, Baku today is very different from what it was in 2010. We want to showcase Baku, to showcase how Azerbaijan has developed over the past 20 years. We wanted to have this roadshow to advertise the meetings and to make sure that all details are very well taken care of by the team of the government of Azerbaijan, but also our team from the Islamic Development Bank. They have been working as one team, which is a great sign of good cooperation.
We also wanted to meet with the government officials, particularly President Ilham Aliyev, to hear his counsel and aspirations for the meetings and for the economy. It was extremely informative and heartening to hear President Ilham Aliyev’s description of his aspirations for the economy and, of course, his gracious welcome of the Islamic Development Bank to all the meetings here in Baku,” he said.
Al Jasser noted that President Ilham Aliyev shared his thoughts about the economy, especially after the liberation.
“He has great aspirations for the economy. He also emphasized the importance of the Islamic Development Bank. I reassured President Ilham Aliyev about our interest also, because luckily, Azerbaijan has a wonderful economy with very low inflation, very low debt, and very good execution capability of projects. All of that makes us very much interested to get engaged in more projects,” noted the IsDB Group chairman.
He recalled that the latest project the Bank approved last February is the Garabagh Irrigation Canal project, valued at more than $436 million, which will expand the agricultural areas that are available.
“Azerbaijan is very well endowed with agricultural land, but it needs water. This is going to make a huge difference, as your food exports to the neighboring countries will expand significantly. The multiplier effect of such investments will show up in the not too distant future. Of course, President Ilham Aliyev emphasized other areas of development and cooperation. I told him that we are going to start from where the government ends. We look forward to having a Member Country Partnership Strategy for 2027-2031, which coincides with the development plan of Azerbaijan. We will be going step by step together towards achieving the aspirations of economic development in Azerbaijan,” he said.
Al Jasser pointed out that the June meetings will first showcase Azerbaijan’s achievements in economic development and sophistication, including in digital development as a host country.
“Azerbaijan is a model to be copied in some other countries. Second, we want to see what projects we can finance single-handedly, or with the Arab Coordination Group, as well as with other development institutions. It's an opportunity for all of us to be in one place, and see with our own eyes the development on the ground. When people come and see what we are seeing here in Baku, I think they will be very impressed. That should even attract not just the public development institutions, but private sector investors. The key word is really showcasing Azerbaijan. Of course, we have other issues, such as sharing knowledge, joint activities between the development institutions. But most important is the relationship between the Islamic Development Bank and Azerbaijan. This is going very well already, and we are going to deepen it as we move forward,” he added.
Talking broadly about the Member Country Partnership Strategy for 2027-2031, the IsDB Group chairman said that the document is already under development.
“We hope to sign a memorandum of understanding on it in June. The firing power of the economy will be enhanced significantly by that. Without this development mechanism and other development institutions, some projects may be delayed. But with the prudent economic management you have, you can borrow from institutions like ours, and not wait too long before you develop these projects that are very important for the economy's future. Debt in this country is still relatively low, but the borrowing is all for productive investments. The impact on the economy is always positive, it will have higher multiplier effects for the economy, ensure higher growth, and better jobs for the citizens,” he said.
Further, Al Jasser touch upon the progress in development of Islamic financing in Azerbaijan, noting that the government has taken a very positive approach.
“First, they have developed Islamic banking mechanisms, including the necessary regulatory framework for a well-functioning Islamic finance market. That has already been put in place, and we have provided technical assistance in this regard. Second, as we speak about diversification, we also want to diversify sources of finance, so that both investors and the government have a wider range of instruments to choose from. Sukuk and other Islamic finance instruments will now be available, enabling Azerbaijan to get access to a deep market,” he said.
The IsDB Group chairman noted that Islamic finance today is a market of about 3.5 trillion dollars, so this also gives access to a bigger market, while maintaining access to traditional markets.
“In effect, it broadens the base and increases the availability of finance for projects needed at this stage of development. It is about diversifying sources of finance, which in turn supports the wider diversification of the economy—whether in agriculture, industry, digital development, or renewable energy. There is already a lot that the country is doing, and even more that it can do going forward. We believe Islamic finance can provide additional support to that process,” he explained.
Al Jasser also praised Azerbaijan’s evolving role as a hub for international trade and logistics.
“First, Azerbaijan is blessed with a very good, convenient strategic location that helps a lot. Second, I think the way the economy is managed is very prudent. Azerbaijan has been building friendly relationships in the neighborhood, which is very important for economic development. In this regard, Azerbaijan and other countries in the region deserve a lot of credit because they want to focus on the development of their economies, creating good jobs for their young people. With Azerbaijan being ahead of the game there, I think a lot of people find it a good hub to enhance the routes of trade, logistics, the transport, be it railroads or highways or sea ferries. All of that will make, maybe already making Azerbaijan an important crossroads for trade in the region, and that should enhance the growth potential of all the countries in the region. Azerbaijan is playing a very positive role in that process,” he said.
Concluding the interview, Al Jasser said that the IsDB is very bullish on Azerbaijan.
“We're already looking at possibility of financing more projects in Azerbaijan. Because we're confident about Azerbaijan's future, about the way the economy is managed. This is really what we need to see in members of the Islamic Development Bank. We look forward to Azerbaijan becoming an advanced economy and a donor country rather than a borrower. I don't think that's a long way to go,” he said.
