(MENAFN) Muhammad Al Jasser, head of the Islamic Development Bank (IsDB) Group, emphasized the imperative for long-term solutions and sustainable infrastructure projects in addressing the global infrastructure financing gap, projected to reach approximately USD15 trillion by 2040.
Speaking at the bank's annual meeting and golden jubilee event in Riyadh, Saudi Arabia's capital, Al Jasser underscored the necessity for a paradigm shift in financing these projects.
“Traditional public financing mechanisms fall short of meeting the growing demand for infrastructure projects," he stated, Al Jasser further emphasized that in order to address these challenges and mobilize sufficient funding for long-term investments, the world requires 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 noted.
"Furthermore, Islamic finance, with its emphasis on environmental responsibility, is perfectly positioned to support these endeavors," Al Jasser further mentioned.
He noted that over the past fifty years, the IsDB has been at the forefront of advocating for Islamic finance. "Our strategy revolves around forging strong partnerships, fostering financial markets, and empowering the private sector."
Al Jasser remarked that the world finds itself at a critical juncture; the COVID-19 pandemic has laid bare vulnerabilities in infrastructure, depleting public resources and undoing strides made in development.
"One-third of least-developed countries are now worse off than pre-pandemic. Without immediate action, their development outlook could further deteriorate," he declared.
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