Azerbaijan

Fig. 40 — Source: Finance Magnates Intelligence, World Bank

Quite recently, CFI Financial entered the Azerbaijani market. The broker is known to have a strong presence in the Middle East. Its interest in the Azerbaijani market emerged last year when it acquired a local brokerage firm, AzFinance Investment Company. The brokerage giant then stated that it would rebrand the local firm to CFI, aligning it with its global brand

Azerbaijan sits at the crossroads of Eastern Europe and Western Asia in the South Caucasus, bordered by Russia, Georgia, Armenia, Iran, and the Caspian Sea. Its capital, Baku, lies on the Caspian’s west ern shore. As of 2024, Azerbaijan’s population is about 10 46 million, mostly ethnic Azerbaijanis and predominantly Shia Muslim

The economy leans heavily on oil and gas, which drive much of its GDP and exports. In 2024, Azerbaijan’s nominal GDP hit $74 3 bil lion, with a per capita GDP of roughly $7,251 and a real growth rate of 4 1%, boosted by a 6 2% rise in the non-oil sector. The Baku Stock Exchange saw transactions soar to 71 2 billion manats ($41 8 billion), a 2 6-fold jump from 2023, with 65 new issue prospectuses approved. Still, the capital market lags, with limited credit access for smaller businesses. Efforts are ongoing to diversify the economy and grow the capital market’s share in non-oil GDP from 10% to 14%

CFD brokers in Azerbaijan are regulated by the Central Bank of the Republic of Azerbaijan. The ‘Regulations on Margin Trading’ came into force on September 14, 2021. 

These regulations address several key aspects, including the remote opening of customer accounts for investment services offered by investment companies, the electronic drafting of contracts and orders, the establishment of AML/CTF (an ti-money laundering and counter-terrorist financing) requirements, and the alignment of credit limits and customer classification in margin trading with international standards

Fig. 42 — Source: Finance Magnates Intelligence