Türkiye and Azerbaijan have signed a tourism cooperation protocol to explore ways of boosting tourism and enhancing collaboration within international entities. 

The 5th meeting of the Azerbaijan–Türkiye Joint Tourism Working Group, held in Antalya, focused on bilateral tourism cooperation, collaboration within international organizations and tourism education, managing coastal areas for tourism purposes, winter, health, and gastronomy tourism.

Ways of improving the legislative framework for sustainable tourism were also discussed, according to Azerbaijan’s state news agency. 

The discussions emphasized on cooperation mechanisms between the public and private sectors, managing regional tourism and cultural heritage, enhancing experience and information exchange in marketing and promotion, and drafting a joint action program for 2026.

The officials explored cooperation within the UN Tourism, the Economic Cooperation Organization (ECO), the Organization of Islamic Cooperation (OIC), D 8, and the Organization of Turkic States (OTS).

The meeting also addressed cooperation in COP31, the 31st session of the climate change conference to be held in Turkiye later this year. Azerbaijan hosted COP29 in November 2024. 

It was noted that, for the first time in COP history, tourism was included in the thematic agenda, and an agreement was reached to share Azerbaijan’s experience in this area with Türkiye.
 

Pakistan’s Securities and Exchange Commission (SECP) has approved the country’s first Shariah-compliant credit risk-sharing product, aimed at improving access to financing for micro, small and medium enterprises (MSMEs) and the agriculture sector, the regulator said on Saturday.

The product, developed by the National Credit Guarantee Company Limited (NCGCL), introduces a risk-sharing mechanism designed to reduce credit exposure for financial institutions while remaining aligned with Islamic finance principles. It offers an alternative to conventional credit guarantees, which are typically interest-based.

According to the regulator, the product, which has not yet been formally named, is structured as a Takaful-based credit guarantee built on the principle of tabarru. It has also advised NCGCL to introduce a brand identity and consider establishing an Islamic window to offer similar solutions.

The SECP’s Shariah Advisory Committee reviewed and approved the structure, confirming its compliance with key Islamic finance principles, while recommending stronger governance and documentation frameworks to support implementation.

The approval comes as Pakistan accelerates efforts to transition its financial system toward Shariah compliance, following a 2022 directive by the Federal Shariat Court to eliminate interest-based banking by 2027. Authorities have since introduced reforms, including legal amendments and the expansion of sukuk issuances to replace conventional government debt instruments.

According to the SECP, the new product is expected to support financial inclusion and responsible lending by enabling banks and financial institutions to extend financing to underserved segments of the economy.

Arab countries could suffer staggering losses of up to $200 billion due to the Iran conflict, according to a new United Nations study.  

The US-Israel war against Iran could cost Arab states between $120 billion to $194 billion in economic losses, new estimates by the United Nations Development Programme (UNDP) suggest.

Military escalation could wipe out between 3.7%-6% of the region’s collective gross domestic product (GDP). Coupled with an estimated loss of 3.6 million jobs - exceeding the ones created in the region last year - the reversal will cast up to 4 million people into poverty. 

The body said that it conducted five simulation scenarios, representing escalating levels of conflicts. The GCC countries and Levant subregions are expected to bear the brunt of the largest macroeconomic losses, with potential economic contractions of up to 8.5% and 8.7%, respectively. 

The crisis is expected to exacerbate poverty in the Levant region by 5%, edging an additional 2.85-3.30 million people into poverty - accounting for over 75 percent of the rise in poverty across the region. 

“This crisis rings alarm bells for countries of the region to fundamentally reevaluate their strategic choices of fiscal, sectoral, and social policies,” said Abdallah Al Dardari, UN assistant secretary general and regional bureau director for Arab States at UNDP. 

“Our findings underline the pressing need to strengthen regional collaboration to diversify economies - beyond reliance on growth driven by hydrocarbons, and to expand production bases, secure trade and logistics systems.” 

Qatar and Kuwait could witness a 14% contraction in their national outputs this year should the conflict continue through to the end of April, Bloomberg reported Goldman Sachs Group economist Farouk Soussa, as saying. 

It is a stark downside from International Monetary Fund’s growth estimates for both countries in the run-up to the conflict. The agency projected Qatar’s GDP to grow by 6.1% in 2026 and Kuwait’s economy to expand by 3.8% this year.  

The conflict, now in its fifth week, has caused considerable damage to Iranian civilian and military architecture caused by the joint US-Israeli onslaught. The attacks also wiped out its top Iranian security and political echelons. 

Iran has carried out retaliatory attacks on its Gulf neighbours, causing substantial damage to airports, hotels, technology, and energy infrastructure as well as military bases. 

The repercussions are visible in global energy markets, with the crisis helping push Brent crude prices from roughly $72 per barrel to nearly $120 before easing slightly. 

The regional aviation industry has also felt the heat, with depressed travel demand and a lingering unease among travellers. 

“Since the escalation at end February 2026, the regional aviation network has shifted from an integrated commercial system to a set of restricted corridors, with several countries implementing partial or full airspace closures. As a result, global air cargo capacity on routes linking Asia, the Middle East, and Europe declined by nearly 40% between February 28 and March 3,” the study added. 
 

The Government of Pakistan raised $425,000 (Rs118.05 billion) in its 32nd auction of Government of Pakistan Ijarah Sukuk (GIS), reflecting continued demand for Shariah-compliant sovereign instruments, according to data from the Pakistan Stock Exchange.

The auction drew total bids of $1.5 million (Rs445.49 billion), indicating strong participation from investors and liquidity within the Islamic banking sector.

Meezan Bank, acting as the lead joint financial adviser, supported the structuring and execution of the transaction.

The government accepted one-year sukuk at a rental rate of 11.49%, while five-year fixed-rate sukuk were priced at 11.75%.

The 10-year variable rental sukuk also attracted notable demand, suggesting increasing investor interest in floating-rate Shariah-compliant instruments.

The sukuk issuance comes as Pakistan advances efforts to transition towards an Islamic financial system following the 26th Constitutional Amendment, which mandates the elimination of interest-based financing.

In this context, sukuk instruments are expected to play a larger role in meeting the government’s financing needs while maintaining compliance with Shariah principles.

The response to the latest auction highlights investor appetite for sovereign Islamic securities as the country expands its Shariah-compliant financing framework.

Turkey’s Turkcell has secured a $1 billion Shariah-compliant syndicated Murabaha financing facility to support its 5G rollout and digital infrastructure investments, the company said.

The facility was initially launched at $500 million but was increased to $1 billion after attracting strong demand from international lenders, with subscriptions exceeding the original target by around 2.4 times.

The seven-year facility carries a profit rate of secured overnight financing rate (SOFR) plus 1.95%, with a total cost of SOFR plus 2.14% including fees, and includes a two-year grace period on principal repayments.

HSBC acted as the sole coordinator and bookrunner for the transaction. Mandated lead arrangers included Kuwait Finance House, BNP Paribas, Dubai Islamic Bank, Emirates NBD, Gulf Bank, ICBC and QNB.

Turkcell said the proceeds will be used to fund investments in 5G technology, connectivity infrastructure and digital services as Turkey prepares to launch 5G services.

Separately, Turkcell has signed a memorandum of understanding with Mavenir to introduce AI-enabled voice and messaging services on its network. The collaboration will use cloud-based infrastructure to integrate artificial intelligence capabilities into core telecom services.

Azerbaijan’s Turan Bank has signed a $15 million financing agreement with the Islamic Corporation for the Development of the Private Sector (ICD) to expand funding for small and medium-sized enterprises (SMEs) in the country.

Under the five-year agreement, ICD will provide a line of finance aimed at improving access to capital for private sector businesses and supporting SME growth in Azerbaijan.

The agreement was signed by Khalid Khalafallah and Orkhan Garayev.

The financing is expected to support business activity across Azerbaijan, particularly in non-oil sectors, as the country seeks to diversify its economy and strengthen private sector participation.

Turan Bank said the facility aligns with its strategy to expand SME financing and promote the development of Islamic finance solutions within the local market.

For ICD, the agreement forms part of its broader mandate to support private sector development across member countries of the Islamic Development Bank Group, with a focus on SMEs as a driver of economic growth.

The latest deal marks the sixth financing collaboration between Turan Bank and ICD since 2008, reflecting an ongoing partnership between the two institutions.

Dubai’s main stock index fell to an 11-month low on Monday after an Iranian strike on Dubai airport deepened investor concerns about the escalating regional conflict, triggering broad selling across UAE markets.

The benchmark index of the Dubai Financial Market dropped 3.5% to 5,235 points, its lowest close since April 2025. The Abu Dhabi Securities Exchange also declined during trading before recovering some losses, ending the day down 0.2% after late buying activity.

The latest market decline follows the escalation of hostilities after the United States and Israel launched strikes on Iran on February 28. Since then, Dubai’s benchmark has fallen about 19.5%, while Abu Dhabi’s index has dropped around 9.5%.

Iran has also closed the Strait of Hormuz, a key route through which roughly one-fifth of global oil supply normally passes, and has carried out attacks on civilian and military targets in countries hosting US forces, including the UAE, Qatar and Bahrain.

The airport strike added to concerns that the conflict could disrupt travel, trade and economic activity in the UAE, prompting investors to reduce exposure to sectors tied to tourism, property and banking.

Selling pressure was strongest in real estate and financial stocks. According to sources, shares in Emaar Properties fell 4.9%, while Aldar Properties declined 3.5%. According to market calculations, the two developers have lost about $21 billion in combined market value this month as investors reassess demand for property in the region.

Banking stocks also weakened. Emirates NBD dropped 1.7%, Dubai Islamic Bank fell 3%, and Abu Dhabi Islamic Bank declined 4.9%. Other Gulf markets showed more moderate movements, with Saudi Arabia’s index on the Saudi Exchange rising 0.3% by mid-session trading.

Saudi Arabia may be less affected by the closure of the Strait of Hormuz because the state oil company Saudi Aramco can export up to two-thirds of its crude through pipelines to the Red Sea.

In contrast, Qatar, Kuwait and Bahrain rely heavily on the waterway for oil exports. According to Goldman Sachs estimates, if the conflict continues at current levels until the end of April, oil output could decline 12% in Saudi Arabia and 16% in the UAE, while Qatar, Bahrain and Kuwait could see production drop by more than 25%.

The weaker outlook has also weighed on other Gulf markets. Qatar’s stock index fell 1.2% to a nine-month low, while Kuwait’s market slipped 0.4%.