(MENAFN) According to the ICD-Refinitiv OIC Infrastructure Outlook 2023 report, the Middle East and North Africa (MENA) region is grappling with the largest infrastructure funding gap among the member countries of the Organisation of Islamic Cooperation. The report estimates that between 2016 and 2040, the region's infrastructure funding gap amounts to approximately $993.9 billion. This gap refers to the disparity between the financial resources required to develop and maintain infrastructure projects and the available funds to meet those needs.

The study highlights specific sectors where MENA faces significant funding gaps over the next 25 years. Roads require an estimated USD684.9 billion in investment, water infrastructure necessitates USD110.8 billion, rail projects demand USD47.3 billion, ports require USD33.6 billion, and airports need USD24.7 billion. However, in terms of electricity infrastructure, MENA actually holds a surplus of USD27.4 billion.

In comparison, the report also sheds light on the infrastructure funding gap in other regions. Sub-Saharan Africa is projected to face a gap of USD665 billion between 2016 and 2040, with telecommunication infrastructure requiring USD178.6 billion, electricity infrastructure needing USD126.3 billion, and rail projects demanding USD42.5 billion. Europe and Central Asia, on the other hand, exhibit a more favorable position with a funding gap of USD547 billion, with road development lagging behind by USD414 billion.

The report emphasizes the growing importance of Islamic markets in the global landscape and their expanding potential as markets for consumption and investment. As a result, filling these infrastructure funding gaps becomes increasingly crucial. Mustafa Adil, the head of Islamic finance at Refinitiv, emphasizes the need to address these gaps as Islamic markets continue to evolve and offer promising opportunities.

MENAFN31052023000045014228ID1106361861