Azerbaijan and the Islamic Development Bank (IsDB) Group used the lender's 51st annual meetings in Baku to sign a new five-year partnership strategy and a raft of financing deals, as Economy Minister Mikayil Jabbarov said Baku wants to deepen ties with the Jeddah-based institution.

The IsDB Group signed 67 agreements worth a combined $6bn with 10 member countries, several regional institutions and private sector companies during the meetings, IsDB Group president Muhammad Al Jasser said at the closing press conference. The bank separately approved $2.8bn in new financing for nine transformation projects across nine member countries, intended to improve connectivity, energy security, food systems and climate resilience, Al Jasser said.

Azerbaijan currently has 11 projects under implementation with the IsDB Group worth a combined $640mn, Jabbarov said. Since Azerbaijan joined the bank, the country's stake in its capital has risen from an initial 0.1% to 1%, which Jabbarov described as reflecting Baku's growing role in the institution. The IsDB has financed 84 operations worth roughly $1.8bn in Azerbaijan since the early years of the country's independence, covering infrastructure, agriculture, energy, water management, transport and financial services. Most of these projects have already been completed, Jabbarov said.

The two sides have agreed a new Member Country Partnership Strategy covering 2027-2031, aligned with Azerbaijan's "2030: National Priorities for Socio-economic Development" document and the IsDB Group's own 10-year strategic framework for 2026-2035, Jabbarov said. Priorities for the next five years include economic diversification, investment in human capital, green and sustainable infrastructure, and expanding regional connectivity, he said.

Current joint projects cover water supply and treatment, railway infrastructure and agriculture, with particular focus on territories liberated from occupation, as well as the Alat Free Economic Zone, according to Jabbarov. He singled out IsDB Group financing for the Karabakh Main Irrigation Canal and Giz Galasi water reservoir projects, which are expected to improve water management and raise agricultural productivity in the Jabrayil and Fuzuli districts and surrounding areas.

Al Jasser said a $436mn agreement to rehabilitate the Karabakh irrigation canal was signed during the meetings, along with a memorandum of understanding on a comprehensive cooperation framework programme with Azerbaijan. A separate memorandum was signed covering the construction of water supply facilities and sewerage systems in 33 settlements on the Absheron peninsula, he said.

Jabbarov thanked the IsDB Group for its support in reviving Azerbaijan's cooperation with the Arab Coordination Group, saying joint efforts by the IsDB Group, the OPEC Fund for International Development, the Saudi Fund for Development, the Kuwait Fund for Arab Economic Development and the Abu Dhabi Fund for Development have produced progress on a multi-billion dollar package of transport, railway and water supply projects. Additional areas for cooperation were identified during a meeting with President Ilham Aliyev the day before the press conference, he said.

Al Jasser said the Arab Coordination Group should expand its involvement in Azerbaijan's development process, adding that Baku had been more than a backdrop for this year's meetings. Azerbaijan and the IsDB Group have built a partnership since 1992 covering infrastructure, energy, agriculture, social services and regional integration, he said.

On the broader investment climate, Jabbarov said Azerbaijan's main attraction for investors is a stable and reliable financial system, alongside political and macroeconomic stability and the country's strategic geographic position. He pointed to low public debt, substantial and stable foreign exchange reserves, and recognition from international rating agencies as evidence of this. Non-oil manufacturing, mining and critical raw materials, agriculture and agricultural processing, transport and logistics, renewable energy, financial services and digital transformation were highlighted as priority sectors during an investment opportunities session held as part of the meetings, he said.

This year's gathering marked Baku's second time hosting the IsDB Group's annual meetings, after 2010. Al Jasser thanked Jabbarov, who chaired the IsDB Board of Governors for the meetings, for his leadership in steering discussions toward consensus and practical outcomes. The 2026-2035 strategic framework, approved by the Board of Governors in Algiers a year earlier, is now moving into implementation through five-year corporate strategies covering 2026-2030, Al Jasser said, describing Baku as the first major milestone in that rollout.