BAKU, Azerbaijan, June 20. Cooperation between Azerbaijan and the Islamic Development Bank (IsDB) opens up new opportunities, political analyst Azer Garayev told Trend.
According to him, the 2026 Annual Meetings of the IsDB Group held in Baku were remembered as one of the important events on Azerbaijan's international economic cooperation agenda.
The analyst said that bringing together government representatives, heads of financial institutions, and experts from around the world, the meeting has become an important platform for discussing issues of regional integration, sustainable development, and investment cooperation.
"One of the event highlights was the participation and speech of the President of Azerbaijan Ilham Aliyev at the opening ceremony. In his speech, the head of state touched upon the partnership relations formed between Azerbaijan and IsDB, as well as the country's economic development model, its role in regional projects, and future priorities.
The cooperation between Azerbaijan and IsDB has a history of more than three decades. During this period, the Bank has financed dozens of projects in the country in transport, energy, agriculture, social infrastructure, and other areas. According to the information announced by the Chairman of the IsDB Group, Muhammad Sulaiman Al Jasser, since Azerbaijan joined the Bank in 1992, financing in the amount of approximately $1.8 billion has been approved for 84 projects covering various fields.
Emphasizing in his speech that this cooperation is based on mutual trust, President Ilham Aliyev noted: "I am very grateful to the Group, its chairman, and all the team for selecting Azerbaijan as the host country for the Annual Meeting. It’s a big honor for us. Once again, it demonstrates the strong bonds between us." These remarks by the head of state show that the partnership formed between Azerbaijan and the Islamic Development Bank isn't limited to financial cooperation, but is based on mutual trust and long-term strategic interests," Garayev said.
According to him, it's no coincidence that Azerbaijan hosted the Annual Meetings of the IsDB Group for the second time.
"The first such meeting was held in Baku in 2010. Since then, significant changes have occurred in the country's economic and political life. In the words of President Ilham Aliyev, "That Annual Meeting gave a strong boost to our partnership with the Group and also to the reforms Azerbaijan was implementing in order to diversify its economy, conduct reforms, and reduce dependence on the energy sector." One of the main features of Azerbaijan's economic development model in recent years has been the diversification of the economy, attracting foreign investments and developing the non-oil sector. In his speech, the head of state highlighted the results achieved by the country and said, "Today the share of the non-oil and gas sector in our GDP is more than 70%, which is a remarkable achievement." This indicator can be assessed as the result of the economic policy implemented by Azerbaijan in recent years. For a long time, the country has directed revenues from energy resources to renew infrastructure, create new production areas, and improve the business environment. The Islamic Development Bank has also acted as a reliable partner in this process," he said.
Garayev pointed out that one of the main topics discussed at the meeting was regional integration and transport connections.
"Today, Azerbaijan is located on one of the main transit routes connecting Europe and Asia. The development of the East-West and North-South transport corridors has further increased the country's regional importance. President Ilham Aliyev characterized the policy implemented by Azerbaijan in this direction as below: "Investing largely in infrastructure, we also concentrated not only on infrastructure inside the country, but also on infrastructure inside the country, which has an international dimension." As a result of this approach, Azerbaijan has become an important logistics and transport hub in recent years. The Baku International Sea Trade Port, the Baku-Tbilisi-Kars railway, international highways, and other projects have created conditions for an increase in the volume of cargo transportation in the region. As the head of state noted, international transport routes currently passing through Azerbaijan are of strategic importance for many countries," Garayev explained.
The analyst underscored that the energy sector also remains one of the main directions of Azerbaijan-IsDB cooperation.
"In his speech, President Ilham Aliyev drew attention to Azerbaijan's position in the energy market and said: "Today Azerbaijan is number one from the point of view of the geography of gas pipeline supply. We supply natural gas to 16 countries, and their number is growing year after year and will continue to increase." This fact shows the importance of Azerbaijan for its international partners in the field of energy security. At the same time, the country is now trying to strengthen its position not only as an oil and gas exporter, but also as a green energy producer. According to information announced by President Ilham Aliyev, by 2032, Azerbaijan plans to acquire 8 gigawatts of solar and wind power generation capacity," Garayev said.
According to him, the meeting also emphasized Azerbaijan's financial stability.
"President Ilham Aliyev noted that "Today our foreign debt is only 6% of GDP." The head of state added that the country's foreign exchange reserves exceed external debt by about 20 times. These indicators show Azerbaijan's investment attractiveness and macroeconomic stability is considered one of the main factors. One of the new directions of cooperation with the Islamic Development Bank in recent years is the restoration of the territories liberated from occupation. Large-scale construction projects implemented in Karabakh and East Zangezur are also in the focus of attention of international financial institutions. President Ilham Aliyev said in his speech that "Today, already in Garabagh and East Zangazur, almost 90,000 people live, work, and study." According to the head of state, more than $15 billion has been allocated from the state budget for the implementation of various infrastructure and housing projects. The Islamic Development Bank is also actively participating in this process. It's no coincidence that within the framework of the meeting, loan and grant agreements were signed on the 'Reconstruction of the Karabakh Irrigation Canal' project," the analyst noted.
Garayev pointed out that this project will serve the development of agriculture, improve water supply, and increase economic activity in the liberated territories.
"In his speech, the chairman of the bank, Muhammad Sulaiman Al Jasser, stressed that support for Azerbaijan's reconstruction efforts would continue, recalling that the institution was the first multilateral development bank to visit liberated Karabakh. This approach shows that cooperation between the parties is not limited to financial relations, but also has a strategic nature.
The results of the meeting showed that relations between Azerbaijan and IsDB are entering a new stage. The signed documents, discussed projects, and made statements indicate that cooperation will expand further in the coming years. Directions such as transport, energy, agriculture, green energy, water resources management, and restoration of territories liberated from occupation will remain the main pillars of this partnership.
The Annual Meetings held in Baku have once again shown that Azerbaijan views its relations with international financial institutions not only as a financing mechanism, but as an important element of its long-term development strategy. Cooperation with the Islamic Development Bank continues to play an important role in the country's economic transformation, regional integration, and implementation of sustainable development goals," the analyst added.
