Azerbaijan, IsDB complete 11 projects worth $640 million, minister says

Azerbaijan and the Islamic Development Bank have jointly implemented 11 projects with a combined value of around $640 million, Azerbaijani Economy Minister Mikayil Jabbarov has stated.

Speaking at a press conference of the IsDB Group’s 51st Annual Meetings in Baku, he said when Azerbaijan first joined the bank, its share in the institution’s capital was just 0.1%, but it has since increased to 1%, Caliber.Az reports, citing local media.

According to him, this growth reflects Azerbaijan’s expanding role within the organisation and its strong commitment to the partnership. He also highlighted that cooperation with the IsDB has been honoured at the highest level through the awarding of the Friendship Order.

Jabbarov recalled that the IsDB was among the first international financial institutions to support Azerbaijan during the early years of its independence. Since then, the bank has financed approximately $1.8 billion across 84 operations spanning sectors such as infrastructure, agriculture, energy, water management, transport, and financial services, with most of these projects already completed successfully.

He also said Azerbaijan has identified key priorities for cooperation with the IsDB over the next five years and that both sides have developed a new Member Country Partnership Strategy covering 2027–2031.

This strategy, he explained, aligns with the national document Azerbaijan 2030: National Priorities for Socio-Economic Development as well as the IsDB Group’s long-term framework for 2026–2035.

According to him, the new approach will allow for more focused and high-impact initiatives in priority sectors. Future cooperation will concentrate on economic diversification, strengthening human capital, developing green and sustainable infrastructure, and improving regional connectivity.

He added that both sides are currently collaborating on projects in areas such as water supply and treatment, railway development, agriculture—particularly in the liberated territories—as well as the Alat Free Economic Zone.

One of the highlighted initiatives includes the IsDB’s participation in financing the Karabakh Main Irrigation Canal and Giz Galasi Reservoir projects, which are expected to significantly improve water management and boost agricultural productivity in regions including Jabrayil, Fuzuli, and surrounding areas.

Jabbarov also expressed gratitude to the bank’s leadership for supporting renewed cooperation between Azerbaijan and the Arab Coordination Group. He noted progress toward a large-scale, multi-billion-dollar project package involving transport, railway, and water infrastructure, developed jointly with the IsDB Group and institutions such as the OPEC Fund for International Development, the Saudi Fund for Development, the Kuwait Fund for Arab Economic Development, and the Abu Dhabi Fund for Development.

He further said that additional areas of cooperation were discussed during a meeting with President Ilham Aliyev the previous day.

Concluding the press conference, Jabbarov thanked the organising committee, IsDB staff, volunteers, and all state institutions involved in hosting the event in Azerbaijan. He said the meetings marked an important milestone not only in bilateral relations with the bank but also in strengthening broader economic ties with member states.

He added that Azerbaijan looks forward to further expanding cooperation with the IsDB both domestically and in third countries, with a particular focus on least developed countries, in line with the bank’s strategic vision and priorities.

Jabbarov also addressed investment opportunities in Azerbaijan, saying that what makes it attractive is a stable and reliable financial system, alongside political and macroeconomic stability and a strategic geographic location.

The minister noted that the country’s financial stability plays a central role in strengthening investor confidence.

Jabbarov also said a session titled Investment Prospects of Azerbaijan was organised as part of the annual meetings, where the country’s economic and investment opportunities were presented.

“These opportunities are reflected in our documents on national economic priorities. As you know, we place a strong emphasis on stimulating economic growth and developing Azerbaijan’s non-oil and gas sector, which over the past five to six years has become a real engine of growth,” he added.

Among priority areas, the minister highlighted non-oil manufacturing, mining and extraction of critical raw materials, agriculture, and agricultural processing. He also pointed to transport and logistics, citing both Azerbaijan’s geographic location and continued investment in transport infrastructure.

Jabbarov further drew attention to the tourism sector, noting that the hosting of the event itself demonstrated the country’s tourism potential.

He added that renewable energy, financial services, and digital transformation remain cross-cutting priorities.

“In my view, Azerbaijan’s main investment attractiveness—alongside political and macroeconomic stability and its strategic geographic location—is its stable and reliable financial system. This is reflected in the very low level of public debt, a substantial and stable volume of foreign exchange reserves, and the country’s investment attractiveness as recognised by international rating agencies. All this information was presented to participants, investors, and international financial institutions,” he explained.

The minister also praised the private sector, particularly Azerbaijani companies, for effectively presenting these opportunities.

By Bakhtiyar Abbasov