- ICD and ABDF signed an agreement to launch a Shariah-compliant SME financing program of up to AZN 200 million in Azerbaijan.
- The program introduces local currency (AZN) financing for the first time, protecting SMEs from currency risk by blending ABDF's AZN funds with ICD's multi-currency resources.
- Financing via Murabaha will prioritize rural and liberated areas, plus women-led, youth-led, and green economy businesses.
The Islamic Corporation for the Development of the Private Sector (ICD) (www.ICD-PS.org), the private sector arm of the Islamic Development Bank (IsDB), and the Azerbaijan Business Development Fund (ABDF) signed an agreement to launch a Shariah-compliant SME financing program during the IsDB Group Annual Meeting’s Private Sector Forum in Baku. As per the program, the parties agreed to consider deploying up to AZN 200 million to the private sector in Azerbaijan within two years (2026–2028).
The program introduces a local currency (AZN) financing channel, with ICD acting as ABDF’s agent to blend ABDF’s manat funds with ICD’s USD, EUR, and AZN resources. These funds will be used to finance local partner financial institutions via Murabaha, removing foreign exchange risk that has long hindered Azerbaijani SMEs, especially outside major cities. The initiative marks ICD’s first AZN-currency financing in the country.
The program prioritizes rural and liberated areas, women- and youth-led businesses, and green economy projects, aiming to boost employment and build a more inclusive economy.
Dr. Khalid Khalafalla, Acting CEO of ICD, commented: "This program delivers accessible Shariah-compliant financing to the businesses that need it most, with a structure tailored to the realities of Azerbaijan’s economy. By introducing local currency financing for the first time, we are addressing a structural gap in development finance. We are proud to partner with ABDF to create lasting impact for Azerbaijani SMEs."
Mr. Ulvi Mansurov, CEO of ABDF, commented: “This strategic partnership with ICD represents an important step in expanding Azerbaijani entrepreneurs’ access to international financing. Through this mechanism, we aim to combine ABDF’s resources with ICD’s expertise in Islamic finance to create sustainable and accessible financing opportunities for SMEs across the country. We believe this cooperation will strengthen the participation of local financial institutions in international financing operations, support the development of the real sector, and contribute to more inclusive economic growth in Azerbaijan.”
This agreement marks ICD’s first formal partnership with ABDF and serves as the foundation for long-term collaboration. The program advances ICD’s mandate to mobilize Islamic finance for private sector growth and inclusive prosperity across its 56 member countries. Through this multi-currency facility, ICD works with national partners to deliver targeted impact and build the institutional framework for sustainable SME growth.
Distributed by APO Group on behalf of Islamic Corporation for the Development of the Private Sector (ICD).Media Contact:
For media inquiries, please contact: icd.communication@isdb.org
About the Azerbaijan Business Development Fund (ABDF):
The Azerbaijan Business Development Fund (ABDF) is a state-owned development financial institution operating under the Ministry of Economy of the Republic of Azerbaijan. Established in December 2024 through the merger of the Entrepreneurship Development Fund and the Azerbaijan Investment Company, ABDF consolidates the country's principal concessional financing and state investment vehicles under a single institutional umbrella. With total assets of approximately AZN 1.5 billion (equivalent to approximately USD 882 million), ABDF's core mandate is to stimulate private sector growth, drive economic diversification, and channel financing, directly and through partner financial institutions, to priority sectors and regions across Azerbaijan, with a particular focus on SMEs. The Fund's strong institutional standing and sovereign backing were further affirmed in August 2025, when S&P Global Ratings upgraded ABDF's long-term issuer credit rating from BB- to BB, citing its strengthened risk position and its pivotal coordinating role between the public and private sectors. For more information, visit www.ABDF.gov.az
About ICD:
The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development finance institution and member of the Islamic Development Bank (IsDB) Group. Established in November 1999 and headquartered in Jeddah, Saudi Arabia, ICD supports economic development in its 56 member countries by providing financial assistance to private sector projects in accordance with Shariah principles. With an authorized capital of USD 4.0 billion and more than 25 years of operational excellence, ICD complements IsDB's activities by promoting capital market development, best management practices, and enhancing the role of market economies. ICD holds strong credit ratings of A2 by Moody's, A+ by Fitch, and A by S&P. For more information, visit www.ICD-PS.org and follow ICD on X (@icd_ps), LinkedIn (@icdps), Facebook (@icdps), and YouTube (@icdps).
