ICD: Sukuk will help Azerbaijani companies access new borrowing markets

Sukuk will help Azerbaijani companies enter other markets for expansion while simultaneously attracting funding, Samir Tagiyev, an expert in the Direct Finance Department of the Islamic Corporation for the Development of the Private Sector (ICD), said during the 2nd Azerbaijan Halal Business Forum (AZHAB) in Baku.

He noted that Gulf countries are looking for emerging markets for investment: "We see strong demand for Uzbekistan, Azerbaijan, and Kazakhstan. Since Azerbaijan currently has no law regulating the issuance of sukuk, companies are forced to rely on traditional bonds. However, there are many who want to access the Gulf markets and attract investments."

According to the ICD representative, there is a significant trend in Azerbaijan of companies issuing traditional bonds on the Baku Stock Exchange.

"State and private companies, especially private banks, issue bonds. Therefore, having sukuk as an alternative financing option will help them. For example, they will be able to attract other global investors who can purchase their sukuk. This is a well-known financial product, so I actively support this process. It will open up major opportunities within the country, both for local currency and hard currency," he said.