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.
