Baku, Azerbaijan, Oct. 3
By Azad Hasanli – Trend:
The Cooperation of Azerbaijan and Arab Countries Public Association will help attract Islamic finance experts into the country, Elshan Rahimov, chairman of the association, said in an interview with Trend.
The association signed a memorandum of cooperation with the Islamic Corporation for the Development of the Private Sector (ICD), a part of the Islamic Development Bank Group, in summer 2017.
Rahimov added that the relevant work will be carried out within this memorandum.
"The memorandum envisages our cooperation in various fields, including Islamic banking,” he added. “In early 2017, the Azerbaijani government and the Islamic Development Bank signed an agreement on implementing Islamic financial legislation in our country. We will support this work and conduct research, reveal shortcomings in the legislation, attract specialists, etc.”
The current norms of the Azerbaijani legislation in banking greatly limit the possibilities of using Islamic banking products. In particular, this is connected with the unresolved issues related to the double taxation, as well as restrictions (related to interest rates, prohibitions on carrying out operations in certain areas, etc.).
In January 2017, the Azerbaijani Ministry of Economy and the Islamic Development Bank (IDB) signed an agreement on implementing Islamic financing in the country. The IDB allocated $200,000 to prepare the legal framework for Islamic financing.
The Cooperation of Azerbaijan and Arab Countries Public Association has been operating since 2017.