IslamicFinance.de

Infrastructure needs in developing countries are great and will continue to rise over the next decade. Since funding infrastructure projects usually requires a long-term and large investment, emerging markets are struggling how to meet these needs through public investments or even traditional bank funding. Figuring out how to finance investments needed in infrastructure is one of the key issues on the G20 agenda and has also been identified in the Sustainable Development Goals. While private-public partnerships are usually mentioned as one way to bridge this financing gap, using Islamic finance or other asset-backed financial mechanisms has started to gain traction in recent years.