Conditions are being created for the introduction of sukuk in Azerbaijan: IsDBI announces a tender

Country: Azerbaijan
Project name: Regulatory and Legal Framework for Capital Market Development in Azerbaijan
Sector: Islamic Capital Market
Financing mode: Islamic Finance Grant
Financing number: AZE1025

The Central Bank of Azerbaijan has requested technical assistance (TA) from the Islamic Development Bank Institute (hereinafter - IsDBI) in order to cover the cost of the project "Islamic Finance Grant for Developing a Regulatory and Legal Framework for the Capital Market in Azerbaijan". The project aims to support the creation of a favourable environment for Azerbaijan to introduce the Sukuk mechanism.

The project is aimed at achieving the following outcomes:

• Formation of a robust legal and regulatory framework for the issuance of Sukuk and other Islamic financial products;
• Strengthening the capacity of Azerbaijani institutions to manage risks related to Islamic financial transactions;
• Creation of a monitoring and evaluation mechanism to track the development of Islamic finance in Azerbaijan;
• Successful implementation of Azerbaijan's first Sukuk issuance, thereby further diversifying the financial sector.

The main goal of the project is to build a modern and sustainable Sukuk sector. This sector will provide important support to government initiatives, ensuring resource mobilisation, financial inclusion and job creation, thereby boosting the country's overall socio-economic development.

Sukuk creates investment opportunities in line with Islamic principles, broadens the investor base, increases capital inflows and facilitates the financing of infrastructure projects. This will ultimately lead to the formation of a more sustainable and inclusive economy.

To achieve this goal, a robust legal, regulatory and supervisory environment must first be created. This environment must enable the effective issuance, regulation, supervision and management of Sukuk. Otherwise, it will not be possible to realise the full potential of this sector.

The preliminary Terms of Reference (ToR) for the assignment are presented in Annex 1.

IsDBI is now inviting eligible consulting firms ("Consultants") that can provide the services described in the ToR (the preliminary terms of reference) to express their interest. Interested firms must provide information demonstrating that they are fully qualified to perform the services (relevant experience, availability of qualified staff, participation in similar projects, brochures, etc.).

Shortlisting criteria and sub-criteria:

1. Technical capability and relevant experience:
Consultants must have proven experience in Islamic capital markets and Sukuk. They must demonstrate competence in developing regulatory frameworks, knowledge of Sharia principles, and organising and delivering training on Islamic finance topics. In addition, knowledge and experience in civil law will be considered an advantage.

2. Project management and team composition:
The proposed team must consist of capital markets specialists, in particular individuals specialised in Sukuk structuring and issuance, finance and Islamic law (Sharia). The project lead must have at least 10 years of experience. The Consultant must present a clear and logical methodology for implementing the project, and must also have a network of contacts with the regulatory bodies of reference countries such as Malaysia, Indonesia, Pakistan, the UAE, Bahrain, Turkey, Kazakhstan or Saudi Arabia (especially for study visits).

3. Institutional capacity and past performance:
The firm must have a positive track record in implementing large-scale financial reform projects and must submit at least three positive reference letters from the last 5 years. It must also demonstrate financial stability sufficient to cover the financial scale of the project. Having a local office in Azerbaijan or a good understanding of the local context is also considered an important advantage.

Consultants may cooperate with other firms to enhance their qualifications, but must clearly indicate that this cooperation takes the form of a joint venture or sub-consultancy. If the cooperation is in the form of a joint venture, all parties will bear joint and full responsibility under the contract if selected.

The selection of the consulting firm will be carried out in accordance with the requirements of international standards (Consultant Qualifications Selection/International Shortlist -CQS).

Expressions of Interest must be submitted in digital format (by e-mail) by 12 October 2025 to the following address

Email: cp.isdbi@isdb.org