Azerbaijan National Assembly approved the draft law concerning the acceptance of the Turkic Investment Fund establishment agreement Tuesday.

The draft law focuses on establishing a fund jointly founded by Türkiye, Azerbaijan, Kazakhstan, Uzbekistan and Kyrgyzstan.

Once the bill receives the official approval of Azerbaijani President Ilham Aliyev, it will come into effect.

At its initial stage, the fund's capital will be $500 million. Istanbul has been chosen as the central hub for managing this fund.

The Organization of Turkic States (OTS) signed the founding agreement to set up the fund to boost economic integration among the member countries in March.

"The signing of the Founding Agreement of the Turkic Investment Fund has been one of the concrete achievements of our summit," Erdoğan said in a televised address.

"I believe that the Turkic Investment Fund will contribute to economic integration in the Turkic world," the president noted.

Formerly called the Turkic Council, the OTC is an international organization comprising prominent independent Turkic countries that work together to elevate relations and union among themselves.

Besides Türkiye, its members comprise Azerbaijan, Kazakhstan, Kyrgyzstan and Uzbekistan. In addition, EU states Hungary, Turkmenistan, and the Turkish Republic of Northern Cyprus (TRNC) have observer status.