Legislation on halal finance in Azerbaijan to be approved this year

Legislative packages on Islamic finance in Azerbaijan are expected to be approved this year.

"Report" reports that Taleh Kazimov, Chairman of the Central Bank of Azerbaijan (CBA), said this at a press conference held on 06.05.2026.

"There is currently a special regulatory regime (sandbox). In it, several of our banks are presenting Islamic finance products to the market on a test basis. Two banks are carrying out these services as a pilot under our supervision. Our aim is for the legislative framework in this area to be regulated through an "Islamic window" approach. This means that banks holding a conventional banking licence will be able to offer some Islamic finance products (in a number of countries this is called "alternative banking").

If we see that there is sufficient, incredibly large demand, we may consider a separate Islamic banking licence. But for now we are doing this through the "Islamic window". All the legislative packages in this area are ready and, I think, in the process of being agreed. I hope that, taking bureaucracy into account, these documents will be approved this year. All our banks will be able to enter the market with both loans and deposits related to Islamic finance", - he said.