Azernews.Az

By Sara Rajabova

An Islamic finance conference kicked off in Azerbaijan's capital Baku on June 21, bringing together representatives of financial institutions, banks and companies.

The event, titled "Islamic finance: Opportunities within the framework of the banking reform in Azerbaijan", was co-organized by Trans Regional Islamic Economics Centre (Azerbaijan), Islamic Finance Advisory & Assurance Services (IFAAS UK) and Ekvita law firm.

The main purpose of the conference is to inform growth-oriented banks and companies about the potential opportunities of Islamic finance. The agenda includes global, regional and national perspectives of Islamic finance, discussions on its current state and future trends, as well as ways of eliminating obstacles to profit-making.The conference continues on June 22 with a training seminar.

Representatives of the Islamic Development Bank, the Islamic Corporation for the Development of the Private Sector based in Saudi Arabia, the General Council for Islamic Banks and Financial Institutions (Bahrain), Trans Regional Islamic Economics Centre and other international organizations as well as Azerbaijani experts engaged in this sector delivered speeches at the conference.

Opening the conference, Ekvita company's Anar Karimov said the theme of the conference was very topical and the event would discuss some related issues.

The development of the Azerbaijani banking sector is gradual but sustainable. Although Islamic banking legislation has not been drawn up in Azerbaijan yet, local banks and companies are interested in introducing Islamic financial tools in the current legislation and adopting new legislative acts enabling their introduction.

Speaking at the event, Trans Regional Islamic Economics Centre's Adalat Jabiyev informed participants about the projects implemented by the Islamic Development Bank in Azerbaijan.

Jabiyev noted that the bank has successfully implemented a number of projects in Azerbaijan and provided support to Azerbaijani banks in the implementation of infrastructure projects.

Speaking about Islamic banking, he said the establishment of the Islamic banking department at the International Bank of Azerbaijan was a successful step.

Jabiyev also said that after changes to the legislation in Azerbaijan, Islamic banking would support the development of the economy.

Jabiyev said that the total amount of Islamic finance worldwide is $1.5 trillion, of which about 85 percent accounts for the banking system.

Also addressing the event, Managing Director of IFAAS Farrukh Raza said he believes that Azerbaijan will successfully implement Islamic banking.

Deputy Director of Caspian International Investment Company Jafar Babayev spoke about the benefits of Islamic banking, saying its development is very useful for Azerbaijan. He said that if Islamic banking develops in the country, it will create opportunities to gain access to major financial markets.

Also speaking at the event, Islamic banking department head at the International Bank of Azerbaijan (IBA),Behnam Gurbanzade, said that until now some steps have been taken in the field of Islamic banking in Azerbaijan. He said IBA became involved in this sector from 2001. In 2004-2008, Islamic banking was broadly applied by IBA. The bank cooperated with the Islamic Corporation for the Development of the Private Sector (ICD) in this field.

Gurbanzade noted that the Islamic banking department was established in the IBA in 2012.

According to him, IBA cooperates with state bodies in this field and six state bodies have positively responded to the introduction of regulatory changes on Islamic banking to the Azerbaijani legislation.