International Bank of Azerbaijan (IBA) is planning to launch a separate sharia-compliant banking unit after the implementation of the new Islamic banking law later this year.
The separate unit would allow IBA to expand its Islamic financing business in the country.
IBA Islamic banking director Behnam Gurbanzada was quoted by Reuters as saying: "IBA is working on developing new products as well as establishing a platform for a separate, fully sharia-compliant unit."
The lender currently has $180m of Islamic financing in the country, and after the passage of the new law, that figure is expected to rise to $750m within a year.
IBA plans to spread its Islamic banking platform to its subsidiaries in Russia, Georgia and Qatar.
Gurbanzada said: "Azerbaijan shows considerable promise to become a hub for Islamic banking in the region and has great potential to cooperate with Russia and all other CIS (Commonwealth of Independent States) countries which are interested in Islamic banking."
IBA is also developing a sharia-compliant student financing product.
Image: International Bank of Azerbaijan is headquartered in the central area of Baku. Photo: courtesy of Urek Meniashvili.