Azernews.Az

Azerbaijan and Islamic Development Bank (IDB) on Thursday established a joint investment company that will boost the development of the country's non-oil sector.
Documents on setting up the group, which is a joint venture of the Azerbaijan Investment Company (AIC) and the IDB's private sector arm Islamic Development Corporation (IDC), were co-signed by the AIC Executive Director Anar Akhundov and his IDC counterpart Khaled Al-Aboodi.
The Caspian International Investment Company (CIIC) will be the first group in the country's capital market operating in accord with Shariah canons. It will invest in local enterprises engaged in the non-oil sector with the exception of businesses operating disregarding Islamic values, such as companies selling alcoholic drinks and producing pork, as well as banks and firms providing traditional financial and insurance services.
The AIC executive director said that under a decision of the AIC observation council, the company will contribute $14 million to acquire a 25% stake in the JV. Its capital will initially make up $3.4 million. The figure will be brought to $70 million over the next two years.
The CIIC will make investments in such fields as agriculture, logistics, medicine and pharmaceuticals, production of construction materials, and the services sector.
"Besides, cooperation with the IDC will be a good experience for us, as the corporation has extensive experience in the area of investments and influence in the region," Akhundov added.
Al-Aboodi, for his part, said the first constituent assembly of the CIIC was held on Wednesday to discuss priority sectors for the company's operation and conditions for financing.
"The company will work in two areas - drawing investments to Azerbaijan and paving the way for local companies' access to international markets," he said, adding that the CIIC planned to cooperate with potential investors from the Middle East and Persian Gulf states.