BAKU, Azerbaijan, June 20. Cooperation between
Azerbaijan and the Islamic Development Bank (IsDB) opens up new
opportunities, political analyst Azer Garayev told Trend.
According to him, the 2026 Annual Meetings of the IsDB Group
held in Baku were remembered as one of the important events on
Azerbaijan’s international economic cooperation agenda.
The analyst said that bringing together government
representatives, heads of financial institutions, and experts from
around the world, the meeting has become an important platform for
discussing issues of regional integration, sustainable development,
and investment cooperation.
“One of the event highlights was the participation and speech of
the President of Azerbaijan Ilham Aliyev at the opening ceremony.
In his speech, the head of state touched upon the partnership
relations formed between Azerbaijan and IsDB, as well as the
country’s economic development model, its role in regional
projects, and future priorities.
The cooperation between Azerbaijan and IsDB has a history of
more than three decades. During this period, the Bank has financed
dozens of projects in the country in transport, energy,
agriculture, social infrastructure, and other areas. According to
the information announced by the Chairman of the IsDB Group,
Muhammad Sulaiman Al Jasser, since Azerbaijan joined the Bank in
1992, financing in the amount of approximately $1.8 billion has
been approved for 84 projects covering various fields.
Emphasizing in his speech that this cooperation is based on
mutual trust, President Ilham Aliyev noted: “I am very grateful to
the Group, its chairman, and all the team for selecting Azerbaijan
as the host country for the Annual Meeting. It’s a big honor for
us. Once again, it demonstrates the strong bonds between us.” These
remarks by the head of state show that the partnership formed
between Azerbaijan and the Islamic Development Bank isn’t limited
to financial cooperation, but is based on mutual trust and
long-term strategic interests,” Garayev said.
According to him, it’s no coincidence that Azerbaijan hosted the
Annual Meetings of the IsDB Group for the second time.
“The first such meeting was held in Baku in 2010. Since then,
significant changes have occurred in the country’s economic and
political life. In the words of President Ilham Aliyev, “That
Annual Meeting gave a strong boost to our partnership with the
Group and also to the reforms Azerbaijan was implementing in order
to diversify its economy, conduct reforms, and reduce dependence on
the energy sector.” One of the main features of Azerbaijan’s
economic development model in recent years has been the
diversification of the economy, attracting foreign investments and
developing the non-oil sector. In his speech, the head of state
highlighted the results achieved by the country and said, “Today
the share of the non-oil and gas sector in our GDP is more than
70%, which is a remarkable achievement.” This indicator can be
assessed as the result of the economic policy implemented by
Azerbaijan in recent years. For a long time, the country has
directed revenues from energy resources to renew infrastructure,
create new production areas, and improve the business environment.
The Islamic Development Bank has also acted as a reliable partner
in this process,” he said.
Garayev pointed out that one of the main topics discussed at the
meeting was regional integration and transport connections.
“Today, Azerbaijan is located on one of the main transit routes
connecting Europe and Asia. The development of the East-West and
North-South transport corridors has further increased the country’s
regional importance. President Ilham Aliyev characterized the
policy implemented by Azerbaijan in this direction as below:
“Investing largely in infrastructure, we also concentrated not only
on infrastructure inside the country, but also on infrastructure
inside the country, which has an international dimension.” As a
result of this approach, Azerbaijan has become an important
logistics and transport hub in recent years. The Baku International
Sea Trade Port, the Baku-Tbilisi-Kars railway, international
highways, and other projects have created conditions for an
increase in the volume of cargo transportation in the region. As
the head of state noted, international transport routes currently
passing through Azerbaijan are of strategic importance for many
countries,” Garayev explained.
The analyst underscored that the energy sector also remains one
of the main directions of Azerbaijan-IsDB cooperation.
“In his speech, President Ilham Aliyev drew attention to
Azerbaijan’s position in the energy market and said: “Today
Azerbaijan is number one from the point of view of the geography of
gas pipeline supply. We supply natural gas to 16 countries, and
their number is growing year after year and will continue to
increase.” This fact shows the importance of Azerbaijan for its
international partners in the field of energy security. At the same
time, the country is now trying to strengthen its position not only
as an oil and gas exporter, but also as a green energy producer.
According to information announced by President Ilham Aliyev, by
2032, Azerbaijan plans to acquire 8 gigawatts of solar and wind
power generation capacity,” Garayev said.
According to him, the meeting also emphasized Azerbaijan’s
financial stability.
“President Ilham Aliyev noted that “Today our foreign debt is
only 6% of GDP.” The head of state added that the country’s foreign
exchange reserves exceed external debt by about 20 times. These
indicators show Azerbaijan’s investment attractiveness and
macroeconomic stability is considered one of the main factors. One
of the new directions of cooperation with the Islamic Development
Bank in recent years is the restoration of the territories
liberated from occupation. Large-scale construction projects
implemented in Karabakh and East Zangezur are also in the focus of
attention of international financial institutions. President Ilham
Aliyev said in his speech that “Today, already in Garabagh and East
Zangazur, almost 90,000 people live, work, and study.” According to
the head of state, more than $15 billion has been allocated from
the state budget for the implementation of various infrastructure
and housing projects. The Islamic Development Bank is also actively
participating in this process. It’s no coincidence that within the
framework of the meeting, loan and grant agreements were signed on
the ‘Reconstruction of the Karabakh Irrigation Canal’ project,” the
analyst noted.
Garayev pointed out that this project will serve the development
of agriculture, improve water supply, and increase economic
activity in the liberated territories.
“In his speech, the chairman of the bank, Muhammad Sulaiman Al
Jasser, stressed that support for Azerbaijan’s reconstruction
efforts would continue, recalling that the institution was the
first multilateral development bank to visit liberated Karabakh.
This approach shows that cooperation between the parties is not
limited to financial relations, but also has a strategic
nature.
The results of the meeting showed that relations between
Azerbaijan and IsDB are entering a new stage. The signed documents,
discussed projects, and made statements indicate that cooperation
will expand further in the coming years. Directions such as
transport, energy, agriculture, green energy, water resources
management, and restoration of territories liberated from
occupation will remain the main pillars of this partnership.
The Annual Meetings held in Baku have once again shown that
Azerbaijan views its relations with international financial
institutions not only as a financing mechanism, but as an important
element of its long-term development strategy. Cooperation with the
Islamic Development Bank continues to play an important role in the
country’s economic transformation, regional integration, and
implementation of sustainable development goals,” the analyst
added.
