Analyzing laws can reveal whether Azerbaijan needs Islamic banking - EXCLUSIVE

Ekvita Consulting consortium and European experts have been involved in elaboration of proposals on development of Islamic financing in Azerbaijan.

Report informs citing the government that a conclusion will be made after analyzing the working laws in the country.

The Ministry of Economy, which is the beneficiary of the technical support project on elaboration of legal basis of the Islamic financing, has appointed the Small and Medium Business Development Agency as a responsible authority for implementation of the project.

According to the Agency, the main goal is to determine how the laws comply with the Islamic financing rules.

"Works with a number of bodies are underway. Alternative bank financing models are used in Europe, Turkey, Kazakhstan and Great Britain. Anyway, application of alternative financial sources are significant in terms of support to business in the country," the source in the Agency said.

In order to prepare a legal base for Islamic financing, the Islamic Development Bank allocated $200,000 as a technical assistance. The grant agreement was signed in January 2017.

Azerbaijan has been in cooperation with IDB since 1992.