BAKU, Azerbaijan, April 7. A prudent regulatory framework, local talent development, and public awareness are important in building a sustainable Islamic banking ecosystem in Azerbaijan, Redmond Ramsdale, Head of Middle East Bank Ratings and Islamic Banking at Fitch Ratings, said, while answering Trend’s question during the Islamic Finance Symposium 2026.
“It’s about a prudent regulatory framework. That is the key cornerstone to building anything. It’s developing your local talent, but that all comes with a strong framework. Things like liquidity management tools are also important to support it as it grows. Also promoting public awareness, because for something to grow, it needs that,” Ramsdale said.
Azerbaijan plans to launch Islamic banking products starting in 2026. Under a special regulatory framework established by the Central Bank, the process of introducing the first products to the market has already begun, while efforts to further develop the legal and regulatory framework continue.
Currently, with the support of the Islamic Development Bank, the Central Bank is implementing a technical assistance project to establish a legal framework for sukuk, an Islamic financial instrument.
In addition, the Central Bank of Azerbaijan has identified international cooperation as a priority in developing Islamic finance.
Alongside establishing a regulatory and institutional framework for the implementation and growth of Islamic finance, creating a skilled workforce with the necessary knowledge and expertise in this field is considered one of the main priorities. To this end, Azerbaijan studies the advanced experience of countries such as Türkiye, Pakistan, and Malaysia. Furthermore, within the framework of cooperation with the Islamic Development Bank, the country regularly participates in experience-sharing, knowledge-exchange, and capacity-building programs, with plans to continue such initiatives in future phases.