16:28 - 2.03.2023

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March 2, Fineko/abc.az. In order to introduce Islamic banking in Azerbaijan, first of all, it is necessary to make certain changes to the legislation.

ABC.AZ reports that this conclusion was made after a survey conducted by public association "Study of Economic Resources” within project ”Assessment of the needs for alternative finance and Islamic banking in Azerbaijan".

The survey was conducted on the basis of a tender announced by the Agency for the Development of Small & Medium-sized Businesses under the Ministry of Economy, and a report was prepared based on the results.

The document says that a new section entitled "Regulation of the activities of Islamic banks" should be added to the Law on Banks. This change will allow existing banks to offer Islamic banking products.

In addition, according to the report, the changes should include requirements for Islamic banks, the principles of the formation of the Islamic Finance Council (Sharia Council), rights and obligations, the scope of Islamic banks, the range of their products and services, features, mechanisms for the transformation of a traditional bank into an Islamic bank.