The Islamic Corporation for the Development of the Private Sector (ICD) (www.ICD-ps.org) and SOCAR signed a Memorandum of Understanding (“MOU”) on the sidelines of the IsDB Group Annual Meeting in Baku. The MOU establishes a framework to jointly explore Shariah-compliant senior limited-recourse financing for Public-Private Partnership (PPP) projects in Azerbaijan and other ICD member countries.
Under the MOU, ICD and SOCAR will identify and evaluate financing opportunities for project companies co-owned by SOCAR and its investment partners, with ICD providing tailored Shariah-compliant financing solutions. The collaboration, which will be active from 2026 through to 2027, leverages on recognised PPP structures to accelerate the development of large-scale energy and infrastructure projects in Azerbaijan and other member countries of ICD.
Following the signing of the MOU, the Acting CEO of ICD, Dr Khalid Khalafalla commented: “This partnership with SOCAR marks a significant step in ICD’s strategy to mobilize private capital across our member countries. By combining SOCAR’s energy expertise with ICD’s Shariah-compliant financing, we are advancing the development of PPP projects that will drive economic growth in Azerbaijan and beyond, in line with the IsDB Group’s development mandate and priorities.”
Mr. ROVSHAN NAJAF, CEO of SOCAR, also stated: “The Memorandum of Understanding opens significant opportunities for the development of future cooperation between the parties on energy projects. The document is important in terms of facilitating joint efforts on projects that may be implemented in Azerbaijan and other member countries of ICD, as well as exploring suitable financing mechanisms and identifying potential areas of cooperation”.
The partnership combines SOCAR’s deep expertise in oil, gas, and infrastructure with ICD’s multilateral development finance capabilities to mobilize private sector investment. It aligns with ICD’s broader mandate to support sustainable private sector growth across its 56 member countries through innovative Islamic finance, reinforcing multilateral development as a catalyst for economic transformation.
