Azerbaijan, Baku /corr. Trend I.Khalilova / This week the Azerbaijan Investment Company JSC (AIC) plans to sign a Memorandum of Understanding with the Islamic Corporation for Development of Private Sector (part of Islamic Development Bank), AIC's Executive Director, Anar Akhundov said. According to him, talks are currently being held on joint investments into the projects and the establishment of a joint investment company.
"In addition, AIC needs to attract other portfolio investors and create favorable conditions to enable them to invest in the economy of Azerbaijan," Akhundov said. According to him, the portfolio investors also may be from regional member-countries of the Islamic Conference, Islamic Development Bank, Persian Gulf, who have not been represented in Azerbaijan to date. For this reason Akhundov considers it ineffective to allocate $50-$100 mln to the investment company. According to him, it is normal practice to begin with an investment amount of $10mln. The investment company will be established with the participation of AIC, whose share will not exceed 10%.
Previously the initial capital of the investment company was stated at a level of $90-$100 mln. The initiative to establish such financial institution was made by the President of Islamic Development Bank, Ahmad Muhammad Ali during the investment conference on 8-9 November 2006 in Baku.
Since 1992, the Islamic Development Bank has financed 26 projects to the amount of $250mln.