BAKU, Azerbaijan, October 7. Islamic banking products will be available in the Azerbaijani market starting next year, said Rustam Tahirov, Director of the Sustainable Development Department of the Financial Sector at the Central Bank of Azerbaijan (CBA), Trend reports.
Speaking at the Second Azerbaijan Halal Business (AZHAB) Forum, Tahirov stated that the bank has adopted a phased and pragmatic strategy based on international experience.
“In the initial stage, Islamic banking products will be offered through the ‘Islamic window’ model within traditional banks. This will allow the market to test demand, familiarize participants with the products, and pave the way for the introduction of a broader range of services in the future,” Tahirov explained.
He noted that a detailed roadmap has been developed, divided into four key areas. First, the products to be introduced have already been identified through consultations with banks, industry associations, and experts to assess customer needs and market demand.
The second stage focuses on establishing the legal and regulatory framework, which includes amendments to the Civil Code, Tax Code, Banking Law, and other regulations. Feedback from the banking sector is currently being collected and will be finalized for intergovernmental approval.
The third pillar of the roadmap is building capacity and expertise. “We have initiated cooperation with relevant institutions in Türkiye, Pakistan, Kyrgyzstan, and other countries. In particular, a training program has been organized with the Central Bank of Pakistan for our regulatory staff,” Tahirov said.
Once minimum legal and regulatory requirements are established, banks will begin offering select Islamic banking products through the Islamic window. The CBA will monitor the process, evaluate results, and use the experience to expand the product range and improve regulatory frameworks in subsequent phases.
“We are ready to work closely with all local and international partners and are confident that Islamic banking products will be introduced in the market next year,” Tahirov added
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