In a recent interview with Report, Renat Bekturov, the Managing Director of the Astana International Financial Centre (AIFC), highlighted the potential for Azerbaijan to leverage the center's platform to attract green and Islamic finance, develop cross-border investments, and foster fintech growth.
Bekturov emphasized that green financing is becoming an increasingly important tool for ensuring sustainable economic growth.
AIFC offers a reliable platform for issuing green bonds and financing projects in renewable energy and clean technologies, he said, adding that both Kazakhstan and Azerbaijan can attract international investors focused on sustainable development.
These efforts, according to Bekturov, will help Azerbaijan reduce its dependence on carbon-intensive industries while adhering to international environmental standards and strengthening its position as a regional leader in green finance.
Another promising area is Islamic finance. According to the Eurasian Development Bank, the global Islamic finance market reached $4.5 trillion in 2023, doubling over the past seven years. Forecasts show that the market size could grow to $6.7 trillion by 2027.
Islamic finance is a huge market that is still underdeveloped in the post-Soviet space, Bekturov said. He noted that AIFC has created a legal framework for issuing sukuk (Islamic bonds), operating Islamic banks, and other market participants.
"There is already demand for these products in our countries, and for Azerbaijan, this could become a new direction in the financial sector," said Bekturov.
AIFC is ready to provide a convenient platform for Azerbaijan to work in this sector. Bekturov suggests focusing on deepening cooperation in areas where Azerbaijan and Kazakhstan have already begun joint work, such as sustainable development and ESG (environmental, social, and governance standards).
Bekturov suggests currently focusing on deepening cooperation in sectors where Azerbaijan and Kazakhstan have already begun joint work. "One of these areas is sustainable development and ESG (environmental, social, and governance standards). This is particularly important in light of the recent UN Climate Change Conference (COP29) in Baku, which emphasizes Azerbaijan's commitment to developing 'green initiatives'."
"The recent placement of Unibank's debut green bonds worth 20 million manats (about $11.8 million) was a significant step in this direction. This creates grounds for deepening cooperation with Kazakhstan," added the AIFC governor.
According to him, additional opportunities for joint work are opened by the Turkic Council on Green Finance, the memorandum for which was signed at the 11th summit of the Organization of Turkic States (OTS). The council includes Kazakhstan, Azerbaijan, Kyrgyzstan, Türkiye, and Uzbekistan. Among the council's main tasks, he mentioned the development and promotion of green and sustainable financing markets in OTS countries and increasing ESG investments in environmentally friendly projects.
The council's secretariat will be based in the AIFC and will handle organizational work and develop key documents.
"At COP29, a Declaration was signed on establishing an OTS countries partnership in climate, innovation, green economy, and trade. This will strengthen the council's activities and allow regional countries to more actively promote joint environmental projects," emphasized R. Bekturov.
The full text of the interview with Renat Bekturov is available here.