SOCAR Partners ICD to Advance Shariah-Compliant PPP Financing in Azerbaijan, ICD Member Countries

Sunday Okobi in Baku, Azerbaijan

The Islamic Corporation for the Development of the Private Sector (ICD) and SOCAR have signed a Memorandum of Understanding (MOU) at this year’s IsDB Group Annual Meeting taking place in Baku, Azerbaijan, to establish a framework to jointly explore Shariah-compliant senior limited-recourse financing for Public-Private Partnership (PPP) projects in Azerbaijan and other ICD member countries, including Nigeria.

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 MOU will set a framework to explore Shariah-compliant, limited-recourse PPP financing for projects in Azerbaijan and other ICD member states.

The cooperation targets infrastructure and energy projects in Azerbaijan and other ICD members’ countries being developed through joint venture project companies co-owned by SOCAR and its partners (2026–2027).

The partnership, the parties said, would leverage SOCAR’s sector expertise and ICD’s development finance mandate and experience to mobilise additional private investment and resources to fund targeted projects.
The collaboration, which will be active from 2026 through to 2027, was learnt, would influence 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 Chief Executive Officer of ICD, Dr Khalid Khalafalla, stated that the partnership with SOCAR marks a significant step in ICD’s strategy to mobilize private capital across our member countries.
According to him, “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.”

On his own, the CEO of SOCAR, Mr. Rovshan Najaf, stated that: “The MoU opens significant opportunities for the development of future cooperation between the parties on energy projects.
He added that 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.

Accordingly, “the partnership combines SOCAR’s deep expertise in oil, gas, and infrastructure with ICD’s multilateral development finance capabilities to mobilise 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.”

The CEO disclosed that SOCAR, a global energy company headquartered in Azerbaijan, specializes in the extraction, processing, and distribution of energy resources. As the largest integrated energy enterprise in the South Caucasus region, the company has a significant presence worldwide, underscoring its importance in various inte