Baku: On the first day of the Islamic Development Bank (IsDB) Group 2026 Annual Meetings in Baku, a high-level multi-stakeholder dialogue explored innovative financing for sustainable development. The high-profile event was jointly organized by the IsDB Group, the Government of the Republic of Azerbaijan, and the United Nations under the title: 8th SDG Dialogue: 'Innovative Financing for Sustainable Development: Beyond Aid and Traditional Official Development Assistance (ODA).'
According to Azeri-Press News Agency, key areas of discussion included Islamic finance, foreign direct investment, blended finance, capital market instruments, and digital finance, as well as policies and practices that catalyze innovative financing to advance Sustainable Development Goals (SDGs). H.E. Mr. Isma«l Nab©, Minister of Planning, International Cooperation and Development of the Republic of Guinea, emphasized the importance of mobilizing, structuring, de-risking, and channeling existing resources towards sustainable development at scale. He highlighted that neither public finance nor private capital alone is sufficient for achieving a transformational impact.
Dr. Mahmoud Mohieldin, United Nations Special Envoy on Financing the 2030 Sustainable Development Agenda, stressed the importance of human dignity in development finance. He pointed out that failing to address poverty and provide dignified living opportunities undermines the core objective of sustainable development.
Mr. Nasar Hayat, UN Resident Coordinator a.i. in Azerbaijan, highlighted the importance of collective efforts in closing the SDG financing gap by mobilizing private capital, strengthening domestic resource mobilization, and expanding the use of innovative finance instruments. He also noted that the SDG Dialogue provides an opportunity for Azerbaijan to connect national efforts with broader regional and global discussions.
Mr. Huseyn Huseynov, Advisor to the Minister of Economy, discussed the growing role of public-private partnerships (PPPs) in advancing development priorities. He noted that PPPs support infrastructure modernization, industrial development, transport connectivity, renewable energy initiatives, and economic diversification, while mobilizing additional investments and promoting sustainable development.
Mr. Rustam Tahirov, Director of the Financial Sector Sustainable Development Department at the Central Bank of the Republic of Azerbaijan, highlighted the strategic role of sustainable finance frameworks, particularly green taxonomies, in directing capital toward priority sectors. He emphasized the growing momentum in translating regulatory frameworks into tangible investments in renewable energy and energy efficiency.
Participants underscored the urgency of mobilizing sustainable investment against the backdrop of declining Official Development Assistance (ODA), rising debt pressures, and a significant global SDG financing gap. They asserted the critical importance of regional integration and South-South cooperation among IsDB Group Member Countries.
The Dialogue reinforced the IsDB Group's role as a strategic partner in advancing practical financing solutions that support regional integration and sustainable development. Key insights and recommendations from the discussions will be reflected in a Policy Brief to support continued knowledge sharing and cooperation among Member Countries.