Baku, Republic of Azerbaijan, 18 June 2026 — The Republic of Azerbaijan and the Islamic Development Bank (IsDB) signed two significant agreements during the opening ceremony of the 2026 IsDB Group Annual Meetings in Baku, witnessed by H.E. Mr. Ilham Aliyev, President of the Republic of Azerbaijan and H.E. Dr. Muhammad Al Jasser, Chairman of the IsDB Group. The agreements mark an important step in strengthening Azerbaijan’s longstanding partnership with IsDB to support sustainable development, climate resilience, and economic transformation.

The first agreement, for the Reconstruction of the Garabagh Irrigation Canal Project, was signed by H.E. Mikayil Jabbarov, Minister of Economy of the Republic of Azerbaijan and IsDB Governor, and Dr. Rami M. S. Ahmad, IsDB Vice President (Operations). The project will receive IsDB financing of US$436.67 million. This major investment will support the reconstruction and modernization of around 168 kilometres of the Garabagh irrigation canal, including the deployment of smart water management systems to enhance operational efficiency, bolster climate resilience, and increase irrigated land. The project aims to reduce water losses by approximately 30 percent, improve water delivery reliability, and boost agricultural productivity in a region increasingly affected by climate pressures.

The second agreement, a Memorandum of Understanding concerning the preparation of the 2027–2031 Member Country Partnership Strategy (MCPS) for Azerbaijan, was also signed by H.E. Mikayil Jabbarov and Dr. Rami M. S. Ahmad, IsDB Vice President (Operations). This strategic MoU aims to shape a new cooperation framework that aligns future IsDB-supported investments with Azerbaijan’s national priorities and Vision 2030. It will create a structured platform for joint analysis, project identification, and coordinated engagement across key sectors.

The signing of these agreements highlights the mutual commitment of Azerbaijan and the IsDB to deepen cooperation in areas critical to resilient and inclusive development. As the host nation for this year’s Annual Meetings, Azerbaijan continues to play an important role in fostering dialogue and partnership across the IsDB membership under the theme of regional integration for sustainable prosperity.