Islamic banking to launch in Azerbaijan starting next year

Islamic banking products will be introduced in Azerbaijan's financial market beginning in 2026, according to Rustam Tahirov, Director of the Financial Sector Sustainable Development Department at the Central Bank of Azerbaijan (CBA), Report informs.

Speaking at the 2nd Azerbaijan Halal Business Forum (AZHAB) in Baku, Tahirov said the CBA has adopted a phased and pragmatic strategy based on international experience.

"In the initial stage, Islamic banking products will be offered through a window model within conventional banks. This approach will help assess market demand, familiarize participants with the products, and pave the way for broader implementation in the future," he said.

The roadmap includes four key areas, such as product selection, legal and regulatory framework, capacity building, implementation and evaluation.

Tahirov emphasized the CBA's readiness to cooperate with both local and international partners throughout the transition.