CBA identifies initial Islamic banking products for Azerbaijan

The initial Islamic banking products to be implemented in Azerbaijan have been identified, Rustam Tahirov, Director of the Financial Sector Sustainable Development Department at the Central Bank of Azerbaijan (CBA), said during the Islamic Finance Forum 2025 in Baku, Report informs.

Tahirov stated that Islamic banking is being considered as an alternative financing mechanism and has been included among the CBA's strategic priorities: "The main goal is to define the approach for implementing Islamic banking in our country, develop its strategy, and put it into practice. Together with relevant government agencies, the CBA has already launched this process, analyzing the experiences of various countries, especially those that have achieved success in the implementation of Islamic banking, existing models of Islamic banking, and identifying an approach tailored to our national context."

"This approach envisions the introduction of Islamic banking products through the Islamic window model within banks. To implement this model, the CBA has developed its own roadmap, which consists of several pillars. Initially, independent experts will identify Islamic finance products under the Islamic window framework. In this regard, Islamic banking products to be implemented in the initial stage have been identified through consultations with both the financial sector and various sector associations, as well as independent and international experts," he noted.

The CBA official added that a legal framework is essential for implementing Islamic banking products: "Draft amendments have been prepared for several legislative acts, including the Civil Code, the Tax Code, the Law on Banks, and other relevant laws. These drafts have been submitted to the financial sector. Their feedback is collected and discussed. Our main objective is to complete this preparatory phase as quickly as possible and submit the finalized legislative package to the government for review."