Turkic Investment Fund and ICD Launch Co-Financing Program

Tashkent, Uzbekistan (UzDaily.com) — The Turkic Investment Fund (TIF) and the Islamic Corporation for the Development of the Private Sector (ICD) have signed a framework agreement to launch a managed Islamic co-financing program during the annual meetings of the Islamic Development Bank Group held in Baku.

The document provides for the establishment of a joint financing mechanism under which the parties can deploy up to US$50 million to support the private sector in member states.

The agreement marks the first institutional framework partnership for TIF in the field of Islamic finance, granting the fund access to the tools, expert base, and network of financial institutions operating in the region belonging to ICD.

Financing will be provided through local banks for onward lending to small and medium-sized enterprises in Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, and Uzbekistan. Under the arrangement, ICD will be responsible for structuring and managing the projects, and will participate in their co-financing alongside TIF.

The parties noted that the new model will expand access to financial resources for small and medium-sized enterprises, while strengthening the integration of Islamic financial instruments in the region.

Ramil Babayev, General Director of the Turkic Investment Fund, called the agreement an important step in implementing the fund's mandate, emphasizing its significance for expanding support to businesses and strengthening the institution's position within the international financial system.

ICD became the first multilateral development institution to enter into such a framework agreement with TIF, which launched its operational activities this year.