BAKU, Azerbaijan, June 19. The Islamic Corporation for the Development of the Private Sector (ICD) considers participation in infrastructure projects in Azerbaijan, Head of Line of Finance at the ICD, Ulan Abylgaziev, told Trend on the sidelines of the 14th Islamic Development Bank (IsDB) Group Private Sector Forum.
"ICD intends to expand support for small and medium-sized businesses (SMEs) in Azerbaijan by attracting financing in national currency through local banks, and is also considering opportunities to participate in infrastructure projects related to the development of the country's transport corridors," he explained.
According to him, ICD's program is focused on supporting Azerbaijani SMEs through local financial institutions.
"ICD has been operating in Azerbaijan since 2003, and the country became the first CIS country where the corporation launched an SME support program. We have collaborated with approximately ten banks, both public and private. More than 90 percent of our support was directed specifically at small and medium-sized businesses. ICD now intends to scale up this activity and expand the capacity of local banks to finance SMEs," Abylgaziev mentioned.
He reported that currency risk remains a limiting factor, which the corporation intends to address in partnership with The Currency Exchange Fund (TCX).
"TCX is a unique platform through which we can attract local currency for investment in Azerbaijan. Support from the Azerbaijan Entrepreneurship Development Fund will ensure access to resources in manat, which will then be channeled into the country's economy through local banks to finance small and medium-sized businesses. The use of funds will be strictly monitored. A key feature of Islamic finance is that we have visibility into every transaction. We must know what project the funds are being used for—whether it's textiles, agriculture, manufacturing, or renewable energy," said Abylgaziev.
Speaking about ICD's potential participation in projects along the Middle Corridor, he emphasized that the corporation has project and infrastructure financing tools and is exploring opportunities to improve the efficiency of transport routes.
He pointed out Azerbaijan's important role in international trade due to its geographical location between East and West, North and South.
"The country effectively utilizes its geographic location and facilitates the development of trade flows, the movement of goods, and capital. Given today's geopolitical challenges, the diversification of trade routes and the availability of alternative transport options are particularly important. ICD is interested in developing partnerships with major Azerbaijani companies, including SOCAR, telecommunications, and infrastructure companies involved in the development of transport corridors," the official said.
Responding to a question about possible financing for projects related to the Zangezur Corridor, he noted that all of Azerbaijan's key transport projects are part of the broader Middle Corridor infrastructure ecosystem.
"Any key corridors that are part of Azerbaijan's national strategy become elements of the broader infrastructure ecosystem. They will receive support from ICD and other entities of the Islamic Development Bank Group," concluded Abylgaziev.
