Azerbaijan, Baku, July 3 / Trend I.Khalilova /
The Islamic Corporation for the Development of Private Sector (ICD) Director General Khalid Al-Aboodi spoke with Trend in an exclusive interview.
Trend : To what extent is Azerbaijani economy attractive for investing?
Khalid Al-Aboodi: Though at the beginning we thought about negative incomes of the global financial crisis for Azerbaijani economy, now we are convinced that there is less impact, particularly as compared to countries of the region. This situation in Azerbaijani economy is explained with its openness. Generally, the financial crisis did not affect the Azerbaijani economy.
Azerbaijan will survive from the crisis and improve the situation in post-crisis period more rapidly than other countries. Azerbaijan has a very good economy. Though ICD did not put more funds in the country, our goal is bring more investments from abroad though divisions of the corporation in Azerbaijan and though implementing different projects.
All our investments in Azerbaijani economy do not have state guarantee and it is peculiar to our head office - the Islamic Development Bank.
Q: What are prospects of further expanding daughter companies of ICD in Azerbaijan?
A: We established the Caspian International Investment Company (CIIC) and leasing company Ansar Leasing in Azerbaijan. Now we have an idea to enter the country's insurance market.
Our insurance company will function in line with the Islamic principles. Initially, we plan to research situation in the insurance market, terms of entrance, study legislation regulating insurance sector. In this respect it is necessary to attract a special company and our decision will be taken on the basis of researches.
At the same time, we plan to participate directly in financing huge projects through ICD.
Q: How do you estimate the Islamic Corporation's investment activities in Azerbaijan?
Answer: So far, the corporation has invested some $60 million in Azerbaijani economy. At the same time we invested funds through our daughter companies - statutory capital of the Caspian Investment Company and leasing company (5 million manat).
Only half of the publicized capital of the investment company in $70 million has been paid, whilst by the end of the year it is planned to fifing payment. Some 25 percent accounts for local investments and 75 percent foreign investments from the Persian Gulf. In future it is planned to attract funds to the company depending on their necessity.
In this stage approximately 35 percent of funds attracted for CIIC accounts for the Kuwaiti Investment Company Hares Group. Investments were also provided by Yemeni investment company Al Ahmar Group, Sudanese MAM Group, Dubai's TANMIYAT Group and others. The Islamic Development Bank invested around 15 percent of investments in CIIC..
Q: When is it possible to launch financing CIIC's first project?
A: A decision to invest in a project on logistic network establishment (agrobusiness, construction of freezer stores, transportation) has been made. The amount of investment will be publicized shortly.
Q: To what extent is the Islamic Corporation prepared to increase financing of commercial banks in Azerbaijan?
A: Presently, we cooperate with eight banks, but are eager to expand this list. ICD is a multilateral organization, being part of the Islamic Development Bank (IDB).
Reference
ICD was founded in 1999 and it is located in Jeddah.
Islamic Corporation for the development of the private sector was established by the Board of Directors of the IDB in the bank's 24th annual meeting held in Jeddah in 1999. ICD head office is located in Jeddah, Saudi Arabia.
The ICD's authority covers supporting economic development in the member countries through promotion of the private sector development by financing private sector projects in accordance with the Shariah principles. The Islamic Corporation for the development of the private sector also advises governments and private organizations to facilitate creation, expansion and modernization of private enterprises.
The projects funded by the ICD are selected on the basis of their contribution to economic development, taking into account factors, such as job places and contribution to the development of exports. The ICD also attracts co-financiers to its projects and consults governments and private sector groups on policies promoting establishment, expansion and modernization of private enterprises, development of capital markets, improving governance and strengthening the role of the market economy. Moreover, the ICD complements the IDB in its member countries and national financial institutions.
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