RIYADH, Saudi Arabia, April 27. Islamic finance
is a ray of light to meet growing demand for infrastructure
projects, said Dr. Muhammad Sulaiman Al Jasser, Chairman of the
Islamic Development Bank (IsDB) Group addressing the panel
discussions on Leveraging Islamic Finance for Developing
Sustainable and Resilient Infrastructure held as part of the IsDB
annual meetings in Riyadh, Trend reports.
He noted that COVID-19 exposed vulnerabilities in
infrastructure, draining public resources and reversing development
progress.
“One-third of least-developed countries are now worse off than
pre-pandemic. Without immediate action, their development outlook
could further deteriorate. Least-developed countries hold
tremendous economic potential waiting to be unleashed. Boosting
investments in social and physical infrastructure is key to
reducing poverty, enhancing health and education, and creating
jobs. It also strengthens resilience against future shocks, such as
pandemics and climate change,” said Al Jasser.
He believes that the world needs long-term solutions, and
sustainable infrastructure projects are the answer.
“However, financing these projects requires a paradigm shift.
Estimates suggest a staggering US$ 15 trillion infrastructure
financing gap by 2040. Traditional public financing mechanisms fall
short of meeting the growing demand for infrastructure projects. To
address these challenges and mobilize sufficient funding for
long-term investments, we need a fresh approach.
This is where Islamic finance emerges as a ray of light. Its
asset-based and risk-sharing principles perfectly align with the
needs of least-developed countries for long-term infrastructure
projects,” he explained.
Furthermore, Al Jasser said Islamic finance, with its emphasis
on environmental responsibility, is perfectly positioned to support
these endeavors.
“For the last five decades, the Islamic Development Bank has
championed Islamic finance. Our strategy revolves around forging
strong partnerships, fostering financial markets, and empowering
the private sector. Robust governance is crucial to ensure
effective risk mitigation within this system,” he added.
The Islamic Development Bank Group (IsDB) is holding its 2024
Annual Meetings and Golden Jubilee in Riyadh from April 27-30,
under the Royal Patronage of the Custodian of Two Holy Mosques,
King Salman Bin Abdulaziz Al-Saud.
The 2024 Annual Meetings are being held under the theme of
“Cherishing our Past, Charting our Future: Originality, Solidarity
and Prosperity”, which marks IsDB’s 50 years of fostering
socio-economic development in its member countries.
Among other topics, the meetings will also feature roundtable on
COP29 with participation of Azerbaijani government
representatives.
As the premier South-South multilateral development Bank, the
2024 IsDB Group Annual Meetings and Golden Jubilee are expected to
attract international and regional attention. The Annual Meetings
will feature a series of side events with top-level panelists from
government, international and regional organizations, the private
sector, academia, and civil society.
Ministers of Economy, Planning, and Finance from IsDB’s 57 member
countries will participate in the event, along with representatives
of international and regional financial institutions, Islamic
banks, private sector companies, national and international
development finance institutions, international and regional
organizations, NGOs, chambers of commerce & Industry, and business
councils.