Baku, Republic of Azerbaijan, 16 June 2026 – On the first day of the Islamic Development Bank (IsDB) Group 2026 Annual Meetings, underway 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).”

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 for advancing SDGs.

During the Dialogue, H.E. Mr. Ismaël Nabé, Minister of Planning, International Cooperation and Development of the Republic of Guinea, emphasized that the key challenge in financing sustainable development is not the lack of capital, but the collective ability to mobilize, structure, de-risk, and channel existing resources towards sustainable development at scale. He underscored that neither public finance nor private capital alone is sufficient, and that their combined use is essential to achieving transformational impact.

Dr. Mahmoud Mohieldin, United Nations Special Envoy on Financing the 2030 Sustainable Development Agenda, highlighted the centrality of human dignity in development finance. He noted that failing to address poverty and provide opportunities for dignified lives ultimately undermines the core objective of sustainable development.

In his speech Mr. Nasar Hayat, UN Resident Coordinator a.i. in Azerbaijan highlighted the importance of collective efforts for closing the SDG financing gap by mobilizing private capital, strengthening domestic resource mobilization, and expanding the use of innovative finance instruments.  He also stressed that the SDG Dialogue offers a timely opportunity to connect national efforts in Azerbaijan with broader regional and global discussions and facilitate knowledge sharing on this important issue.

Mr. Huseyn Huseynov, Advisor to the Minister of Economy, highlighted the growing role of public-private partnerships (PPPs) in advancing development priorities. He noted that PPPs are increasingly supporting infrastructure modernization, industrial development, transport connectivity, renewable energy initiatives, and economic diversification, while helping mobilize additional investment, enhance efficiency and innovation, and promote long-term sustainable development.

Mr. Rustam Tahirov, Director of the Financial Sector Sustainable Development Department at the Central Bank of the Republic of Azerbaijan, spoke on the strategic role of sustainable finance frameworks, particularly green taxonomies, in directing capital toward priority sectors. He highlighted that such frameworks enable both public and private actors to accelerate decarbonization efforts and noted increasing momentum in translating regulatory frameworks into tangible investments in renewable energy, energy efficiency, and other sustainable sectors.

Also in attendance were representatives of Islamic Development Bank (IsDB) Member Countries, international financial institutions, development players as well as private sector, academia, and civil society practitioners.

Participants underscored the urgency of mobilizing sustainable investment at scale against a backdrop of declining Official Development Assistance (ODA), rising debt pressures, and a significant global SDG financing gap while asserting 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.