World needs $15tn to bridge the gap for sustainable infrastructure
Riyadh, Saudi Arabia - Islamic Development Bank (ISDB) President Dr Mohammed al Jasser has emphasised the pressing need for long-term solutions and sustainable infrastructure projects in today’s world. He highlighted that financing such projects requires a significant shift in concepts, with estimates indicating a need for Us$15tn to bridge the infrastructure financing gap by 2040.
According to the Saudi Press Agency (SPA), Al-jasser also noted the inadequacy of public financing mechanisms to meet the increasing demand for infrastructure projects. He stressed the necessity of adopting a new approach to address challenging issues and provide the necessary financing for long-term investments.
These remarks were made during a speech delivered at the group’s 2024 Annual Meetings held in Riyadh from April 27-30, under the theme ‘Cherishing our Past, Charting our Future: Originality, Solidarity, and Prosperity’. The meeting coincided with the bank’s celebration of its Golden Jubilee.
Jasser highlighted the challenges posed by the COVID-19 pandemic, including the depletion of public resources and a decline in development performance, particularly in the least developed countries. He warned that without urgent action, these countries could face further deterioration, jeopardising their future ambitions. He stressed the vast economic potential of the least developed countries, emphasizing the urgent need to accelerate investment to combat poverty, improve healthcare and education, and create job opportunities.
He underscored the role of Islamic finance, noting its compatibility with the requirements of long-term infrastructure projects in the least developed countries. Al-jasser highlighted that Islamic finance, being asset-based and involving risk-sharing, aligns with the needs of long-term infrastructure projects and environmental responsibility. He called for intensified efforts to unleash the potential of Islamic finance and bridge the gap in financing infrastructure projects.