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The Turkic Investment Fund (TIF), a multilateral development finance institution established by member states of the Organization of Turkic States, has launched a $50 million Islamic finance fund.
The fund aims to expand access to capital for small and medium-sized enterprises (SMEs) across the Turkic region.
It will operate through a partnership with the Islamic Corporation for the Development of the Private Sector (ICD), the private-sector arm of the Islamic Development Bank (IsDB) Group, and is expected to support businesses in Azerbaijan, Kazakhstan, Kyrgyz Republic, Türkiye and Uzbekistan.
Announced during the IsDB Group Annual Meetings in Baku, Azerbaijan, the initiative marks TIF's first structured venture into Islamic finance since the institution began operations earlier this year.
The new vehicle is being established under the Managed Islamic Co-Financing Program (MICFP), a framework that enables TIF to deploy capital alongside ICD while relying on the latter's experience in structuring and managing Islamic finance transactions.
Rather than lending directly to companies, the fund will channel financing through local partner financial institutions, which will then provide funding to eligible SMEs. The approach is designed to help businesses gain access to financing while utilizing existing banking networks in each market.
ICD will originate, structure and manage individual financing facilities under the program. It will also invest its own capital alongside TIF, creating a co-financing structure that aligns the interests of both institutions, according to the statement.
For TIF, the initiative provides a ready-made platform for entering the Islamic finance market and expanding its reach across member states.
Ramil Babayev, TIF's general director, described the initiative as an important step in translating the institution's mandate into practical financing programs.
"This partnership gives us an immediate, credible channel to support private enterprise across our member states while we continue building our own institutional capabilities. Signing this agreement at the IsDB Annual Meetings also positions the Turkic Investment Fund within the broader development finance architecture," he said.
The arrangement also establishes ICD as the first multilateral development institution to enter into a formal institutional partnership with TIF.
Officials expect the platform to support SME growth while contributing to the development of Islamic finance ecosystems across the Turkic world.
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