Azerbaijan, Islamic Corporation join forces to advance Islamic insurance initiatives

The Central Bank of Azerbaijan (CBA) has entered into a memorandum of understanding (MoU) with the Islamic Corporation for Investment and Export Credit Insurance (ICIEC) to foster cooperation in the realm of Islamic insurance.

According to the announcement, this collaboration aims to facilitate the exchange of knowledge in Islamic insurance practices, organize various training sessions and seminars, and promote mutual visits between the two organizations, Caliber.Az reports.

The partnership is expected to enhance the implementation of innovative financial instruments within Azerbaijan, thereby accelerating the influx of investments into the country.

Azerbaijan became the 49th member of ICIEC, which is part of the Islamic Development Bank (IsDB) group, on February 1, 2023. Established in 1994, ICIEC aims to strengthen economic ties among member states of the Organisation of Islamic Cooperation (OIC) and promote trade and investment by providing risk mitigation tools and financial solutions.

The presence of ICIEC as an investment partner adds a layer of certainty, encouraging other potential investors to explore opportunities in Azerbaijan. Upon accepting Azerbaijan, Oussama Qayssi, the Director General of ICIEC, emphasized that the country's membership enables both its public and private sectors to leverage the risk mitigation and credit enhancement services provided by ICIEC, facilitating the expansion of exports and the attraction of foreign direct investment. Additionally, this membership allows exporters, banks, and investors from other member states and beyond to mitigate the political and commercial risks associated with their operations in Azerbaijan.

By Tamilla Hasanova