(MENAFN- Trend News Agency) RIYADH, Saudi Arabia, April 27 . Islamic financeis a ray of light to meet growing demand for infrastructureprojects, said Dr. Muhammad Sulaiman Al Jasser, Chairman of theIslamic Development Bank (IsDB) Group addressing the paneldiscussions on Leveraging Islamic Finance for DevelopingSustainable and Resilient Infrastructure held as part of the IsDBannual meetings in Riyadh, Trend reports.
He noted that COVID-19 exposed vulnerabilities ininfrastructure, draining public resources and reversing developmentprogress.
“One-third of least-developed countries are now worse off thanpre-pandemic. Without immediate action, their development outlookcould further deteriorate. Least-developed countries holdtremendous economic potential waiting to be unleashed. Boostinginvestments in social and physical infrastructure is key toreducing poverty, enhancing health and education, and creatingjobs. It also strengthens resilience against future shocks, such aspandemics and climate change,” said Al Jasser.
He believes that the world needs long-term solutions, andsustainable infrastructure projects are the answer.
“However, financing these projects requires a paradigm shift suggest a staggering US$ 15 trillion infrastructurefinancing gap by 2040. Traditional public financing mechanisms fallshort of meeting the growing demand for infrastructure projects. Toaddress these challenges and mobilize sufficient funding forlong-term investments, we need a fresh approach.
This is where Islamic finance emerges as a ray of light. Itsasset-based and risk-sharing principles perfectly align with theneeds of least-developed countries for long-term infrastructureprojects,” he explained.
Furthermore, Al Jasser said Islamic finance, with its emphasison environmental responsibility, is perfectly positioned to supportthese endeavors.
“For the last five decades, the Islamic Development Bank haschampioned Islamic finance. Our strategy revolves around forgingstrong partnerships, fostering financial markets, and empoweringthe private sector. Robust governance is crucial to ensureeffective risk mitigation within this system,” he added.
The Islamic Development Bank Group (IsDB) is holding its 2024Annual 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, Solidarityand Prosperity”, which marks IsDB's 50 years of fosteringsocio-economic development in its member countries.
Among other topics, the meetings will also feature roundtable onCOP29 with participation of Azerbaijani governmentrepresentatives.
As the premier South-South multilateral development Bank, the2024 IsDB Group Annual Meetings and Golden Jubilee are expected toattract international and regional attention. The Annual Meetingswill feature a series of side events with top-level panelists fromgovernment, international and regional organizations, the privatesector, academia, and civil society.
Ministers of Economy, Planning, and Finance from IsDB's 57 membercountries will participate in the event, along with representativesof international and regional financial institutions, Islamicbanks, private sector companies, national and internationaldevelopment finance institutions, international and regionalorganizations, NGOs, chambers of commerce & Industry, and businesscouncils.
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