Washington: The Islamic Development Bank (IDB) and the World Bank will work together to unlock the potential of the $1.9 trillion Islamic Finance market in order to mobilize resources for infrastructure projects using Public Private Partnership (PPP).
A meeting between the two banks was organized in Washington to discuss a report on “mobilizing Islamic Finance for Infrastructure-Public Private Partnership,” which suggested that the Islamic financial market is growing rapidly, and has reached $1.9 trillion over the past six decades.
The report added that Islamic Finance is applied in several areas such as trade, manufacturing, real estate, infrastructure and banking, but the area of PPP has remained largely untapped. The aim of the report is to create awareness about the potential of Islamic Finance for infrastructure development especially in developing countries.
IDB Vice President Dr. Mansur Muhtar recommended the development of innovative PPP structures around Islamic finance, strengthening partnerships, knowledge sharing and co-financing activities.
“One of the advantages that Islamic Development Bank has in using Islamic finance is localization. They have worked in many villages in their areas of operations, and their former and current presidents have always explained how localization helps in using Islamic finance,” said Dr. Mahmoud Mohieldin, World Bank’s Senior Vice President for 2030 Agenda.
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