ITFC Chief Meets Azerbaijani Agriculture Minister at COP29

The Chief Executive of the International Islamic Trade Finance Corporation (ITFC), Eng. Hani Salem Sonbol, met with Azerbaijan’s Minister of Agriculture, Majnun Mammadov, on the sidelines of the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) in Baku, Azerbaijan, on November 18, 2024, according to the Saudi Press Agency (SPA). The two officials discussed enhancing cooperation in green agricultural economies and explored practical ways to address the sector’s climate-related challenges, underscoring the ITFC’s growing role as a bridge between Islamic Development Bank (IsDB) member states and the global climate finance agenda.

The meeting reflects a broader strategic push by the IsDB Group, of which the ITFC is a member, to align agricultural development with climate resilience and food security. COP29, held in Baku, brought together governments, development banks, and private-sector leaders to accelerate climate action, and the ITFC used the platform to reaffirm its commitment to supporting member countries in securing the resources, borrowing, and financing they need to modernize agriculture. Why does this matter to readers far beyond the South Caucasus or the Middle East? Because agricultural trade and climate finance are increasingly intertwined, and institutions like the ITFC are shaping how countries access the capital required to adapt.

Context and Background

What makes this meeting more than a routine diplomatic courtesy? The International Islamic Trade Finance Corporation, headquartered in Jeddah, Saudi Arabia, is an autonomous entity within the Islamic Development Bank Group that focuses on advancing trade among member countries of the Organisation of Islamic Cooperation (OIC). Since its establishment, the ITFC has provided billions of dollars in trade financing, with agriculture and food security among its priority sectors. Its leadership role in mobilizing resources for member states positions it as a key player in the global conversation about sustainable food systems.

Azerbaijan, meanwhile, has been actively diversifying its economy beyond hydrocarbons, with agriculture playing a central role in rural development and export growth. As host of COP29, Azerbaijan sought to highlight its commitment to climate action, and its agriculture ministry has emphasized the need for international partnerships to adopt greener practices. The meeting between Eng. Sonbol and Minister Mammadov therefore fits into a wider pattern of engagement between the IsDB Group and Azerbaijan, a member country that has increasingly looked to Islamic finance and development institutions for support.

The timing is significant. COP29 focused heavily on climate finance, and development banks were under pressure to demonstrate how they can channel resources to vulnerable sectors, including agriculture. For the ITFC, the meeting was an opportunity to showcase its ability to facilitate access to financing and to position itself as a partner for countries navigating the twin transitions of climate adaptation and economic diversification. How often do high-level climate conferences produce concrete follow-ups rather than just declarations? The ITFC-Azerbaijan dialogue suggests that at least some of the momentum is being translated into sector-specific cooperation.

Key Details of the Discussion

According to the Saudi Press Agency, the two sides discussed enhancing cooperation in green agricultural economies and explored ways to address challenges in the sector. Minister Mammadov highlighted Azerbaijan’s commitment to addressing climate change issues and stressed the importance of increasing cooperation with the IsDB. Eng. Sonbol, for his part, confirmed the IsDB’s commitment to developing agriculture in member countries and facilitating access to the necessary resources, borrowing, and financing.

These statements, while concise, carry substantial weight. Green agricultural economies refer to farming systems that reduce emissions, conserve water, and protect soil health while maintaining productivity. For many IsDB member countries, especially those in arid and semi-arid regions, transitioning to such systems requires not only technical knowledge but also significant upfront investment. The ITFC’s mandate includes providing trade finance, structured commodity finance, and capacity-building support, all of which can help de-risk agricultural investments and unlock private capital.

Eng. Sonbol’s emphasis on borrowing and financing is particularly relevant. Many developing countries face constrained fiscal space and high borrowing costs, making it difficult to fund climate-smart agriculture projects. By working with institutions like the ITFC, countries can access Shariah-compliant financing instruments tailored to their needs. The meeting in Baku thus signals a practical pathway: use the convening power of COP to connect development finance with national agricultural strategies. What could this mean for farmers on the ground? Potentially, it means better access to credit for equipment, seeds, and irrigation systems that are both productive and environmentally sustainable.

International and Regional Impact

How does a bilateral meeting in Baku ripple across regions? The ITFC’s membership spans Africa, Asia, and the Middle East, and its decisions can influence how agricultural trade flows between these regions. Azerbaijan sits at the crossroads of Europe and Asia, and its agricultural exports—including cotton, fruits, and nuts—could benefit from improved trade finance and market access within the OIC bloc. Enhanced cooperation with the IsDB could also open doors for Azerbaijani agribusinesses to partner with counterparts in Gulf Cooperation Council (GCC) states, including Saudi Arabia, which is a major food importer.

For Saudi Arabia, the meeting aligns with the Kingdom’s own strategic priorities. Saudi Arabia has made food security a cornerstone of its Vision 2030 reform agenda, and Saudi agricultural companies and funds have been investing in overseas farming and supply chains. A stronger, more climate-resilient agricultural sector in partner countries like Azerbaijan contributes to global food stability, which in turn supports Saudi import reliability. Moreover, the ITFC’s headquarters in Jeddah means that Saudi Arabia is not just a host but a shaping force in Islamic development finance, reinforcing its role as a bridge between the Global South and international climate efforts.

Regionally, the meeting underscores the IsDB’s relevance in a multipolar world where countries seek diversified sources of financing. Unlike some Western development banks that attach stringent policy conditions, the IsDB and ITFC emphasize member-country ownership and Shariah-compliant instruments. This model has appeal across Central Asia, the Caucasus, and Africa. The Baku meeting may encourage other member states to approach the ITFC with similar proposals, creating a pipeline of agricultural projects that could be announced at future COPs or IsDB annual meetings.

Economic and Strategic Significance

What is the economic logic behind focusing on agriculture at a climate conference? Agriculture accounts for a significant share of GDP and employment in many IsDB member countries, yet it is also highly vulnerable to climate shocks such as drought, floods, and changing rainfall patterns. Investing in green agricultural economies is therefore both a climate adaptation strategy and an economic development strategy. The ITFC’s involvement can help bridge the financing gap by offering trade finance products that support the import of climate-smart inputs and the export of certified sustainable produce.

For Azerbaijan, deeper cooperation with the IsDB could translate into tangible benefits: improved irrigation infrastructure, better post-harvest storage, and access to new markets. The country has already expressed interest in expanding its agricultural exports to Gulf markets, and ITFC financing could facilitate the trade logistics and certification needed to meet those markets’ standards. From the ITFC’s perspective, Azerbaijan represents a promising partner because of its strategic location, its commitment to climate action as demonstrated by hosting COP29, and its membership in the IsDB. A successful partnership could serve as a model for other member countries in the region.

Strategically, the meeting also reinforces the ITFC’s brand as a solutions-oriented institution. In a crowded development finance landscape, the ITFC differentiates itself through its focus on trade and its ability to mobilize resources quickly. By engaging with ministers at high-profile events like COP29, Eng. Sonbol and his team are signaling that the ITFC is open for business and ready to co-design financial solutions. Could this lead to a new wave of South-South cooperation in agriculture? The signs point in that direction, especially as countries seek to reduce dependence on traditional donors and build more resilient regional supply chains.

Vision 2030 Alignment

How does this meeting connect to Saudi Arabia’s Vision 2030? Vision 2030 aims to diversify the Kingdom’s economy, strengthen its global engagement, and enhance food security through sustainable practices. The ITFC, as a Jeddah-based institution, is an instrument of that vision on the international stage. By facilitating agricultural trade and climate finance for member countries, the ITFC extends Saudi Arabia’s soft power and demonstrates its commitment to multilateral cooperation. The Kingdom’s leadership in Islamic finance is thus leveraged to address global challenges, from climate change to rural poverty.

Furthermore, Vision 2030 emphasizes the importance of partnerships and knowledge exchange. The ITFC’s work with Azerbaijan on green agricultural economies exemplifies how Saudi-based institutions can export expertise and capital to countries that share common development goals. As Saudi Arabia continues to host major international events and lead regional initiatives, the ITFC’s activities add another layer to the Kingdom’s profile as a responsible global actor. The meeting in Baku is a small but meaningful step toward a future where agriculture is both productive and planet-friendly—a future that aligns squarely with the aspirations of Vision 2030 and the Islamic Development Bank’s mission to promote comprehensive human development.

20 Questions

Q1. Who met with Azerbaijani Agriculture Minister Majnun Mammadov?

A1. Eng. Hani Salem Sonbol, Chief Executive of the International Islamic Trade Finance Corporation (ITFC), met with Minister Mammadov on the sidelines of COP29 in Baku, Azerbaijan, on November 18, 2024.

Q2. What event provided the backdrop for this meeting?

A2. The meeting took place during the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29), held in Baku, Azerbaijan, which focused on global climate action and finance.

Q3. What is the ITFC’s relationship to the Islamic Development Bank?

A3. The ITFC is an autonomous entity within the Islamic Development Bank (IsDB) Group, headquartered in Jeddah, Saudi Arabia, and focused on advancing trade among member countries of the Organisation of Islamic Cooperation.

Q4. What topics did Eng. Sonbol and Minister Mammadov discuss?

A4. They discussed enhancing cooperation in green agricultural economies and explored ways to address challenges in the agricultural sector, according to the Saudi Press Agency.

Q5. What did the Azerbaijani Agriculture Minister emphasize during the talks?

A5. Minister Mammadov highlighted Azerbaijan’s commitment to addressing climate change issues and stressed the importance of increasing cooperation with the Islamic Development Bank.

Q6. What did the ITFC Chief Executive confirm about the IsDB’s priorities?

A6. Eng. Sonbol confirmed the IsDB’s commitment to developing agriculture in member countries and facilitating access to necessary resources, borrowing, and financing for agricultural projects.

Q7. Why is the concept of green agricultural economies important?

A7. Green agricultural economies aim to reduce emissions, conserve water, and protect soil health while maintaining productivity, which is crucial for climate adaptation and long-term food security in member countries.

Q8. How does the ITFC support member countries in agriculture?

A8. The ITFC provides trade finance, structured commodity finance, and capacity-building support to help member countries access resources and de-risk agricultural investments, including climate-smart projects.

Q9. What is the significance of Azerbaijan hosting COP29?

A9. Hosting COP29 demonstrated Azerbaijan’s commitment to climate action and provided a platform for countries and development banks to discuss financing solutions for sustainable agriculture and other sectors.

Q10. How does this meeting benefit Azerbaijan’s agricultural sector?

A10. It opens avenues for improved access to Shariah-compliant financing, technical cooperation, and potential partnerships that can modernize Azerbaijan’s agriculture and expand its exports to Gulf and other markets.

Q11. What role does Saudi Arabia play in the ITFC?

A11. Saudi Arabia hosts the ITFC headquarters in Jeddah, and the Kingdom’s leadership in Islamic finance supports the ITFC’s mission, aligning with Vision 2030 goals of global engagement and food security.

Q12. How does this meeting relate to Saudi Vision 2030?

A12. It reflects Vision 2030’s emphasis on international cooperation, food security, and sustainable development, showcasing how Saudi-based institutions contribute to global climate and agricultural solutions.

Q13. What are the potential regional impacts of this cooperation?

A13. Enhanced cooperation could strengthen agricultural trade linkages between the Caucasus, Central Asia, and the Middle East, promoting South-South cooperation and more resilient regional food supply chains.

Q14. Why is agriculture a focus at climate conferences like COP29?

A14. Agriculture is both vulnerable to climate change and a contributor to emissions, making it central to adaptation and mitigation strategies, especially for developing countries reliant on farming.

Q15. What financing instruments does the ITFC offer?

A15. The ITFC offers trade finance, structured commodity finance, and other Shariah-compliant instruments designed to meet the specific needs of member countries and promote sustainable trade.

Q16. How can farmers in member countries benefit from this meeting?

A16. Farmers may gain better access to credit for climate-smart inputs, equipment, and irrigation, as well as improved market access through trade facilitation supported by ITFC financing.

Q17. What is the Islamic Development Bank’s stance on agricultural development?

A17. The IsDB is committed to developing agriculture in member countries, as reaffirmed by Eng. Sonbol, and works to facilitate access to resources and financing for sustainable agricultural projects.

Q18. How does the ITFC differentiate itself from other development banks?

A18. The ITFC focuses on trade finance and emphasizes member-country ownership and Shariah-compliant solutions, offering a distinctive model that appeals to OIC member states.

Q19. What might be the next steps after this meeting?

A19. Next steps could include formal project proposals, feasibility studies, and potential financing agreements between the ITFC and Azerbaijan’s agriculture ministry, possibly announced at future IsDB or COP events.

Q20. Why is this meeting relevant to international audiences?

A20. It illustrates how climate finance and agricultural development intersect, and how institutions like the ITFC, backed by Saudi Arabia, are shaping global efforts to build sustainable and resilient food systems.

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