Leveraging Islamic Finance to Maximize Finance for Development

Over the past two decades, Islamic finance has emerged as an important source of finance for a wide variety of infrastructure projects, through both public sector and public-private partnership (PPP) schemes. Amidst the dearth of conventional infrastructure financing, Islamic finance widens the pool of resources to meet the massive infrastructure investment needs in developing countries, including (but not limited to) Muslim-majority countries.

As the World Bank Group focuses increasingly on Maximizing Finance for Development — systematically leveraging all sources of finance, expertise, and solutions to support developing countries’ sustainable growth — Islamic financing is a critical tool. The asset-backed, ring-fenced nature of Islamic finance structures and their emphasis on shared risks make them a natural fit for infrastructure PPPs. A wide variety of these structures are available to provide flexibility to practitioners as they select appropriate financing vehicles and combine them with conventional financing in blended structures.

The World Bank Group and the Islamic Development Bank Group have been working to create financial tools and products to foster this Islamic finance-conventional financing nexus. Their joint report, Mobilizing Islamic Finance for Infrastructure Public-Private Partnerships, is a key example of MDB efforts to increase awareness and capacity in how to bring in Islamic finance as an additional financing option for infrastructure development. 

This webinar will dive deeper into this topic, targeting policy makers in client countries looking for additional financing sources, practitioners of Islamic finance, private sector participants in infrastructure projects, and practitioners in the MDB community.