ICD Signs 13 Strategic Agreements to Foster Private Sector Development in Member Nations

BAKU, AZERBAIJAN: The Islamic Corporation for the Development of the Private Sector (ICD), part of the Islamic Development Bank (IsDB) Group, announces the signing of 13 major financing and strategic cooperation agreements with various partners. These agreements are designed to accelerate economic development and strengthen private sector growth and initiatives across multiple member nations in diverse global regions. The deals were concluded during the 2026 IsDB Group Annual Meetings in Baku, Azerbaijan, themed “Regional Integration for Sustainable Prosperity,” which served as a forum for member countries to enhance dialogue and collaboration on regional connectivity, resilience, and inclusive growth. This milestone highlights ICD’s steadfast dedication to driving prosperity through strategic alliances and expanding access to finance and financial inclusion within its member states.

Key Takeaways

• ICD signed 13 major financing and strategic cooperation agreements at the IsDB Group 2026 Annual Meetings in Baku.
• The deals aim to accelerate private sector growth and economic development across multiple member nations.
• ICD and the Azerbaijan Business Development Fund signed a framework for a Shariah-compliant SME financing line.
• The agreements support ICD’s mandate of expanding access to finance and financial inclusion in member states.

In line with its mandate to support private sector growth in its member countries, the ICD and the Azerbaijan Business Development Fund (ABDF) signed a framework agreement to launch a managed Shariah‑compliant line of financing for SMEs during the opening ceremony of the IsDB Group 2026 Annual Meeting’s Private Sector Forum in Baku. Under this framework, the parties are to collaborate in deploying up to AZN 200 million within the next two years. The program introduces a local‑currency (AZN) financing channel by which ICD, acting as ABDF’s agent, will blend ABDF’s AZN funds with ICD’s USD, EUR, and AZN resources to support SMEs and private sector growth in Azerbaijan. Through this initiative, the ICD, acting on its own behalf and on behalf of ABDF, will provide either single‑ or multi‑currency financing facilities to selected partner financial institutions in Azerbaijan for onward financing of eligible companies in the country. This arrangement is expected to help mitigate foreign exchange risk that has long hindered the growth of Azerbaijani SMEs, especially those operating outside major cities in the country.

To further explore bankable financing opportunities in Azerbaijan and fulfill its mandate of supporting private sector development across its member nations, the ICD also signed a Memorandum of Understanding (MoU) with the State Oil Company of the Azerbaijan Republic (SOCAR). This agreement establishes strategic cooperation between the two institutions to collaborate on financing infrastructure and energy projects in Azerbaijan and other member countries under existing public‑private partnership (PPP) frameworks. Under the MoU, the parties will identify and evaluate financing opportunities for project companies established by SOCAR and its joint‑venture partners, with ICD providing financing solutions tailored to each project’s specific requirements.

Additionally, the ICD signed a Mandate Letter with Azerconnect for a USD 20 million financing facility aimed at capital expenditures, and an Expression of Intent Letter with Turan Bank for a USD 15 million Line of Financing Facility. Both agreements are intended for onward financing of SMEs and other eligible companies in Azerbaijan.

In an effort to strengthen and deepen its operations in Nigeria, the ICD also signed a Mandate Letter with the Nigerian Export‑Import Bank (NEXIM) for a USD 50 million syndicated line of financing facility. This facility will be arranged by ICD and made available to NEXIM for financing eligible private sector entities in Nigeria.

Aligned with its mission to promote economic development in its member countries, the ICD also signed an Expression of Intent Letter for a proposed EUR 50 million Line of Financing Facility with Afriland Bank (Cameroon) and a Final Term Sheet for a EUR 20 million financing line with AFG Bank (Cameroon). Both facilities are designated for onward financing of SMEs and other eligible private sector companies in Cameroon. Through these arrangements, ICD will lead and support the mobilization of resources and private capital to bolster the operations of these Cameroonian banks, thereby contributing to economic growth and prosperity in the country.

Consistent with its goal of maintaining a diversified portfolio across its member nations, the ICD also executed a Murabaha Facility Agreement with Al Salam Bank of Bahrain (ASB). This agreement provides a USD 50 million Line of Finance Facility aimed at onward financing of eligible Bahraini companies whose activities significantly support—or have the potential to support—SME growth and the broader private sector in Bahrain.

ICD also signed a strategic Memorandum of Understanding with DAMU Entrepreneurship Development Fund of Kazakhstan. The agreement creates a cooperation framework to identify and develop financing and guarantee opportunities for financing lines in Kazakhstan, emphasizing support for SMEs and private sector entities.

To further bolster private sector growth in Kazakhstan, the ICD signed a strategic Memorandum of Understanding with KAZAGROFINANCE JSC (KAF). This pact establishes a partnership platform among the ICD, KAF, and Kazakhstan’s Ministry of Agriculture to provide agri‑sector‑focused financing lines to KAF under the Ministry’s farmer subsidy program.

Building on its recent successful credit enhancement deal with the African Solidarity Fund (FSA) in Mauritania—executed in partnership with Banque Mauritanienne de l’Investissement (BMI)—the ICD signed a strategic Expression of Intent Letter with FSA. This agreement signals their aim to expand collaboration, utilizing FSA’s guarantees as credit enhancement for ICD’s financing operations across selected member countries shared by both parties.

Finally, the ICD entered into a Strategic MOU with the UK’s Texel Group to create a cooperation platform focused on enhancing credit portfolios through insurance. Under this agreement, ICD will pair its project origination and development financing expertise with Texel Group’s capabilities in structuring and placing Non‑Payment Insurance. The partnership aims to improve risk management, optimize capital allocation, and attract additional financing to priority sectors, while allowing ICD to expand its financing activities and better manage portfolio concentration and credit exposure across its member countries.

Collectively, these agreements mark a significant advancement in ICD’s mission to foster sustainable economic growth and broaden financial inclusion throughout its member nations. By reinforcing partnerships with leading financial institutions and development allies, ICD remains a key driver of private sector expansion and development in the countries it serves.