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The Islamic Development Bank (IDB) and the World Bank will engage in public-private partnerships (PPP) for infrastructure development projects, taking advantage of the growth of the Islamic market, Arab News gathered in a forum thrown by both entities.

The forum aimed to raise awareness about potential infrastructure developments through PPP, especially in developing countries.

“The IDB, in partnership with the World Bank, will work to unlock the potential of the $1.9 trillion Islamic finance market to mobilize resources for infrastructure development projects using public-private partnership (PPP),” IDB vice president Dr. Mansur Muhtar told the forum.

The vice president discussed issues included in IDB’s report “Mobilising Islamic Finance for Infrastructure-Public Private Partnership.” The World Bank said that the Islamic financial market has reached $1.9 trillion over the past six decades.

“This falls in line with the new development orientations of IDB member countries including Saudi Arabia, whose ambitious 2030 plan is targeting to increase the private sector’s contribution to the GDP from 40-60%,” commented IDB spokesperson Dr. Abdul-Hakim Elwaer.

Read more: Islamic finance popularity rocketing as it starts facing a lack of talent

Elwaer added that Saudi Arabia is hoping to achieve these goals by seeking out PPPS and promoting the privatization of government entities.

“One of the advantages that the IDB has in using Islamic finance is localization,” commented Dr. Mahmoud Mohieldin, World Bank senior vice president on sustainable development. “The IDB has worked in many villages in its areas of operation, and has always demonstrated how localization helps in benefiting from Islamic finance.”

by Henry Vilar
Henry is Junior Reporter at IBS Intelligence, follow him on Twitter or contact him at: henryv@ibsintelligence.com