The Board of Executive Directors of the Islamic Development Bank (IsDB) has approved a significant financing package worth $436.7 million to enhance agricultural productivity in Azerbaijan.
According to Operative Information Center-OMM, citing the IsDB, the funds will be directed toward minimizing irrigation water losses and promoting sustainable rural development in line with Azerbaijan's 2030 National Priorities.
This strategic project is also expected to accelerate the transition to a "green growth" model, strengthen climate resilience, and provide a fundamental contribution to ensuring the long-term food security of the country. By modernizing water infrastructure, the initiative aims to bolster the efficiency of the agrarian sector, which remains a vital component of Azerbaijan's non-oil economy.
Azerbaijan has been a member of the IsDB since 1992 and holds a 0.13% share in the bank's capital. The partnership has historically focused on infrastructure, energy, and social development, reflecting the bank's commitment to supporting the economic diversification of the Republic of Azerbaijan.
As of the end of 2024, the total financing allocated by the IsDB Group to Azerbaijan has reached $1.298 billion, covering a total of 81 projects. The structure of this financing is as follows:
- The bulk of the funds — $1.106 billion — has been spent on project financing across 35 initiatives.
- $185.8 million has been directed toward trade financing operations.
- $4.4 million was allocated to 23 technical assistance projects.
- $1.6 million was provided for three special assistance initiatives.
Looking ahead, the IsDB Group plans to hold the 51st Annual Meeting of its Board of Governors in Baku from June 16-19, 2026. This high-level event will bring together finance ministers and economic leaders from 57 member countries to discuss global economic challenges and regional cooperation.
