Baku, June (پاکستان پوائنٹ نیوز 17 يونيو 2026ء) The report was launched on June 17, 2026, during the 20th IsDB Global Forum on Islamic Finance, held in conjunction with the IsDB Group Annual Meetings in Baku, Azerbaijan.
The report highlights Azerbaijan’s strong potential to develop a vibrant Islamic finance ecosystem, supported by its predominantly Muslim population, investment-grade sovereign ratings, ongoing regulatory reforms, and strategic location connecting Central Asia, the Caucasus, the middle East, and Europe.
Recent developments, including the introduction of pilot Islamic banking products under the regulatory sandbox of the Central Bank of the Republic of Azerbaijan (CBAR) and ongoing legal and regulatory reforms, signal growing momentum toward establishing the foundations of Islamic finance in the country.
The report projects that Islamic banking assets in Azerbaijan could reach approximately $2.7 billion by 2035, while cumulative sukuk issuances could grow to $1.5 billion by 2035, creating new opportunities for investment mobilization, trade finance, financial inclusion, and private sector development.
The report concludes with a phased development roadmap focusing on regulatory reform, sector development, capacity building, awareness enhancement, and regional positioning. Together, these measures can support Azerbaijan’s ambition to become a leading Islamic finance hub in the Commonwealth of Independent States (CIS) region.
The report is accessible on the IsDBI website here: https://isdbinstitute.org/product/islamic-finance-azerbaijan/.
