BAKU, Azerbaijan, May 7. The Islamic
Development Bank (IsDB) Group’s Annual Meetings in Baku will
showcase Azerbaijan’s achievements in economic development,
Chairman of the Islamic Development Bank (IsDB) Group Dr. Muhammad
Sulaiman Al Jasser said in an exclusive interview with Trend, as he visited
Azerbaijan.


“This visit is significant, because it is the culmination of the
preparations for the Annual Meetings in June. It will be the second
time the Islamic Development Bank holds its annual meetings in
Baku. Of course, Baku today is very different from what it was in
2010. We want to showcase Baku, to showcase how Azerbaijan has
developed over the past 20 years. We wanted to have this roadshow
to advertise the meetings and to make sure that all details are
very well taken care of by the team of the government of
Azerbaijan, but also our team from the Islamic Development Bank.
They have been working as one team, which is a great sign of good
cooperation.


We also wanted to meet with the government officials,
particularly President Ilham Aliyev, to hear his counsel and
aspirations for the meetings and for the economy. It was extremely
informative and heartening to hear President Ilham Aliyev’s
description of his aspirations for the economy and, of course, his
gracious welcome of the Islamic Development Bank to all the
meetings here in Baku,” he said.


Al Jasser noted that President Ilham Aliyev shared his thoughts
about the economy, especially after the liberation.


“He has great aspirations for the economy. He also emphasized
the importance of the Islamic Development Bank. I reassured
President Ilham Aliyev about our interest also, because luckily,
Azerbaijan has a wonderful economy with very low inflation, very
low debt, and very good execution capability of projects. All of
that makes us very much interested to get engaged in more
projects,” noted the IsDB Group chairman.


He recalled that the latest project the Bank approved last
February is the Garabagh Irrigation Canal project, valued at more
than $436 million, which will expand the agricultural areas that
are available.


“Azerbaijan is very well endowed with agricultural land, but it
needs water. This is going to make a huge difference, as your food
exports to the neighboring countries will expand significantly. The
multiplier effect of such investments will show up in the not too
distant future. Of course, President Ilham Aliyev emphasized other
areas of development and cooperation. I told him that we are going
to start from where the government ends. We look forward to having
a Member Country Partnership Strategy for 2027-2031, which
coincides with the development plan of Azerbaijan. We will be going
step by step together towards achieving the aspirations of economic
development in Azerbaijan,” he said.


Al Jasser pointed out that the June meetings will first showcase
Azerbaijan’s achievements in economic development and
sophistication, including in digital development as a host
country.


“Azerbaijan is a model to be copied in some other countries.
Second, we want to see what projects we can finance
single-handedly, or with the Arab Coordination Group, as well as
with other development institutions. It's an opportunity for all of
us to be in one place, and see with our own eyes the development on
the ground. When people come and see what we are seeing here in
Baku, I think they will be very impressed. That should even attract
not just the public development institutions, but private sector
investors. The key word is really showcasing Azerbaijan. Of course,
we have other issues, such as sharing knowledge, joint activities
between the development institutions. But most important is the
relationship between the Islamic Development Bank and Azerbaijan.
This is going very well already, and we are going to deepen it as
we move forward,” he added.


Talking broadly about the Member Country Partnership Strategy
for 2027-2031, the IsDB Group chairman said that the document is
already under development.


“We hope to sign a memorandum of understanding on it in June.
The firing power of the economy will be enhanced significantly by
that. Without this development mechanism and other development
institutions, some projects may be delayed. But with the prudent
economic management you have, you can borrow from institutions like
ours, and not wait too long before you develop these projects that
are very important for the economy's future. Debt in this country
is still relatively low, but the borrowing is all for productive
investments. The impact on the economy is always positive, it will
have higher multiplier effects for the economy, ensure higher
growth, and better jobs for the citizens,” he said.







Further, Al Jasser touch upon the progress in development of
Islamic financing in Azerbaijan, noting that the government has
taken a very positive approach.


“First, they have developed Islamic banking mechanisms,
including the necessary regulatory framework for a well-functioning
Islamic finance market. That has already been put in place, and we
have provided technical assistance in this regard. Second, as we
speak about diversification, we also want to diversify sources of
finance, so that both investors and the government have a wider
range of instruments to choose from. Sukuk and other Islamic
finance instruments will now be available, enabling Azerbaijan to
get access to a deep market,” he said.


The IsDB Group chairman noted that Islamic finance today is a
market of about 3.5 trillion dollars, so this also gives access to
a bigger market, while maintaining access to traditional
markets.


“In effect, it broadens the base and increases the availability
of finance for projects needed at this stage of development. It is
about diversifying sources of finance, which in turn supports the
wider diversification of the economy—whether in agriculture,
industry, digital development, or renewable energy. There is
already a lot that the country is doing, and even more that it can
do going forward. We believe Islamic finance can provide additional
support to that process,” he explained.


Al Jasser also praised Azerbaijan’s evolving role as a hub for
international trade and logistics.


“First, Azerbaijan is blessed with a very good, convenient
strategic location that helps a lot. Second, I think the way the
economy is managed is very prudent. Azerbaijan has been building
friendly relationships in the neighborhood, which is very important
for economic development. In this regard, Azerbaijan and other
countries in the region deserve a lot of credit because they want
to focus on the development of their economies, creating good jobs
for their young people. With Azerbaijan being ahead of the game
there, I think a lot of people find it a good hub to enhance the
routes of trade, logistics, the transport, be it railroads or
highways or sea ferries. All of that will make, maybe already
making Azerbaijan an important crossroads for trade in the region,
and that should enhance the growth potential of all the countries
in the region. Azerbaijan is playing a very positive role in that
process,” he said.


Concluding the interview, Al Jasser said that the IsDB is very
bullish on Azerbaijan.


“We're already looking at possibility of financing more projects
in Azerbaijan. Because we're confident about Azerbaijan's future,
about the way the economy is managed. This is really what we need
to see in members of the Islamic Development Bank. We look forward
to Azerbaijan becoming an advanced economy and a donor country
rather than a borrower. I don't think that's a long way to go,” he
said.