Islamic finance, an untapped funding alternative for PPPs

Public Private Partnerships (PPPs), arrangements between government agencies and private sector companies or investors to provide and maintain public assets and services are increasingly becoming popular, particularly in developing countries, to create infrastructure, utilities and healthcare facilities. In most cases, governments rely on the provision of private funding in exchange for fiscal benefits for the sponsor in the absence of sufficient sources of debt and equity financing on their own. Islamic Finance has evolved as an untapped source of funding for cash-strapped governments seeking alternative sources to invest in critical infrastructure and services.