Islamic Finance Emerges as a ‘Ray of Light’ Amidst Global Infrastructure Challenges: head of Islamic bank
As the world grapples with the need for sustainable infrastructure, the Islamic Development Bank (IsDB) Group's head has highlighted a significant financing gap, estimated to reach around $15 trillion by 2040.
Speaking at the bank's annual meeting in Riyadh, which also marks IsDB's 50th anniversary, Muhammad Al Jasser emphasized the urgency for long-term solutions.
"Traditional public financing mechanisms fall short of meeting the growing demand for infrastructure projects," Al Jasser stated, advocating for a new approach to funding sustainable projects.
"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.
Al Jasser praised Islamic finance for its environmental responsibility and suitability for supporting sustainable development.
Read More:
Reflecting on IsDB's history, he noted, "Our strategy revolves around forging strong partnerships, fostering financial markets, and empowering the private sector."
The COVID-19 pandemic has brought the world to a pivotal moment, revealing infrastructural weaknesses and setting back developmental gains. "One-third of least-developed countries are now worse off than pre-pandemic. Without immediate action, their development outlook could further deteriorate," warned Al Jasser.
He concluded with a call to action, stressing the untapped economic potential in these countries. "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," Al Jasser affirmed.
Source: Agencies
