Muhammad Al Jasser: IsDB identified priorities for cooperation with Azerbaijan until 2032 - INTERVIEW

For over three decades, the relationship between the Islamic Development Bank Group (IsDB) and Azerbaijan has evolved into a sustainable and multi-layered partnership, covering key areas of economic growth-from infrastructure and water resources to the financial sector and sustainable development. Today, this cooperation is entering a new phase. In June, Baku will host events as part of the IsDB's Annual Meetings, and the parties have prepared a roadmap for bilateral cooperation over the next five years.

IsDB President Muhammad Sulaiman Al Jasser, who is currently visiting Azerbaijan, spoke with Report about the IsDB's planned projects in Azerbaijan, including in the country's Karabakh region, and preparations for the Annual Meetings.

- What were the key outcomes of your meeting with President Ilham Aliyev, and how do they shape future cooperation?

- I had a very constructive meeting with H.E. Ilham Aliyev, reaffirming the strength of our long-standing partnership. I expressed the Bank's strong appreciation for Azerbaijan's leadership and forward-looking vision. I assured His Excellency the President that the Bank will align its support with the Azerbaijan Vision 2030 priorities. We agreed to anchor our cooperation through a new Country Partnership Strategy for 2027-2031, focused on sustainable and inclusive growth.

- What makes your current visit to Azerbaijan particularly significant ahead of the 2026 IsDB Group Annual Meetings in Baku?

- This visit comes at a significant moment in the relationship between the IsDB Group and Azerbaijan. In a matter of weeks, Baku will host the 2026 IsDB Group Annual Meetings. This will be the second time Azerbaijan hosts the Annual Meetings, after 2010. I came to thank the country's leadership and Government for its strong commitment to make the Annual Meetings a big success. The Bank's teams are also meeting with the private sector, the youth, academia, and, of course, the media, and other stakeholders to discuss ways to strengthen cooperation in various development fields.

My visit also intends to showcase how far the country has come and how central it has become to regional and global development and connectivity. The Annual Meetings will showcase the success stories of Azerbaijan's development under the leadership of. H.E. Mr. Ilham Aliyev.

- How would you assess the impact of the Islamic Development Bank Group's three-decade partnership with Azerbaijan on the country's development trajectory?

- The partnership spans more than three decades, since Azerbaijan joined the Bank in 1992. Since then, the IsDB Group has provided about $1.8 billion in financing across 84 operations in vital sectors of the economy, including agriculture, energy, water, transport, and financial services. The majority of projects have been completed, while 11 operations are still under implementation with a total value of $635.9 million. Many of the completed projects were independently evaluated and found to generate tangible and lasting results. The active projects are also expected to lead to real impacts, especially in irrigation canals bringing water to farmland, households gaining access to clean water, upgraded sanitation systems, and businesses benefiting from trade finance.

- How is the IsDB Group aligning its support with Azerbaijan Vision 2030?

- The IsDB Group is fully aligned with Azerbaijan Vision 2030. We are working with the Government to sign a country partnership strategy covering the same period, 2027–2031. Over the next five years, our support will focus on diversifying the economy, investing in human capital, building green and resilient infrastructure, and advancing regional connectivity, in full alignment with the country's Vision 2030.

- Could you elaborate on the significance of the Karabakh Irrigation Canal Project for Azerbaijan's agricultural and economic recovery?

- The Karabakh Irrigation Canal Project is a $436.67 million operation approved by the IsDB Board in February 2026. It is one of the largest single financing operations that IsDB has approved for Azerbaijan. We plan to move fast towards implementation, starting with signing the financing agreement, which is planned to be signed next month during the Annual Meetings in Baku. The project is designed to deliver irrigation infrastructure to support agricultural revival and food security across the Karabakh region. It is a strong signal of IsDB's commitment to improve the livelihoods of the population in the area.

- What role do water infrastructure projects play in strengthening food security and climate resilience in Azerbaijan?

- Water security and climate resilience are inseparable. Before the Karabakh Irrigation project, the Bank also provided financing to the Main Irrigation Canal from the Maiden Tower Reservoir for an amount of $96.73 million. We signed the financing agreement of the project on the sidelines of COP29 in November 2024. The project is now under implementation to improve water efficiency, strengthen food security, and support farming communities. These projects (the Maiden tower and Karabakh canal) help provide water for agriculture, support livelihoods, and at the same time build resilience against climate pressures.

- What are your expectations for the 2026 IsDB Group Annual Meetings in Baku, and how will they contribute to regional development?

- The Annual Meetings in Baku are expected to be a landmark event for the Bank"s 57 member countries. The Government of Azerbaijan has already done extraordinary work in preparing for the Meetings. I would like to acknowledge and thank the work of the Government's Organizing Committee under the leadership of the Deputy Prime Minister, H.E Samir Sahrifov. The dedication of the organizing team, momentum built through roadshows, and ambition behind the program are strong signs of success. The Meetings will help strengthen cooperation, highlight Azerbaijan's development achievements, and reinforce its role in regional and global connectivity.

- What will the new Member Country Partnership Strategy (2027–2031) bring to Azerbaijan's development agenda?

- The Annual Meetings in Baku will be the occasion to launch the new Member Country Partnership Strategy for 2027–2031. An MoU is expected to be signed at the Meetings. The strategy will provide a roadmap for the next phase of cooperation over the next five years. It will be fully aligned with the Country's Vision 2030 and focus on green infrastructure, economic diversification, Islamic finance, digital transformation, and regional integration. It will give the partnership the structure and ambition it deserves.

- How can Islamic finance support Azerbaijan's efforts to diversify its economy and strengthen capital markets?

- Islamic finance offers Azerbaijan a credible, ethical, and asset-backed channel for mobilizing development finance. It can support economic diversification and strengthen capital market development. The IsDB Group is committed to supporting Azerbaijan"s journey, covering regulation and Islamic capital market development.

- What progress has been made in developing a Sukuk market, and what comes next?

- Azerbaijan has made encouraging progress in developing its Islamic finance ecosystem. The IsDB Institute has launched a technical assistance initiative with the Central Bank of Azerbaijan. This initiative supports the development of the regulatory framework for Sukuk issuance and Islamic capital market development, which are prerequisites to tangible market development, including a vibrant Sukuk market.