The first step for the functioning of Islamic finance in Azerbaijan's capital market should be the creation of a mechanism for subsidiary companies, Emin Aliyev, leading economist at the Baku Stock Exchange (BSE) CJSC, stated at the 3rd Islamic Finance Forum in Baku, Report informs.
According to him, the formation of this mechanism will expand opportunities for attracting investments from the Gulf countries: "Both the public and private sectors will show interest in this direction. On the balance sheet of every company acting as an issuer, there may be certain assets or income-generating projects. These projects or assets are transferred to subsidiary companies. Then, this company carries out an emission and pays investors a share from the generated income. I think that for issuers wishing to expand their investor base and transition to Islamic financing methods, this will be highly interesting."