Islamic Financing can Facilitate Sustainable Developments: SC, World Bank

KUALA LUMPUR: The Securities Commission Malaysia (SC) and the World Bank Group say more sustainable developments can be created when Public Private Partnerships (PPPs) employ Islamic infrastructure financing in their projects.

SC and the World Bank Group jointly said this today at the “Islamic Finance and Public-Private Partnerships for Infrastructure Development” conference, organised by both institutions.

“A critical imperative for infrastructure financing is to successfully bridge the gap between the demand for capital and the supply of it. The Securities Commission Malaysia has long recognised the promising potential of the Islamic capital market as an alternative avenue for large-scale long-term fundraising.

“In this regard, Sukuk, given its asset-based and risk-sharing nature, is particularly apt for infrastructure financing,” said SC chairman, Tan Sri Ranjit Ajit Singh, in an emailed statement.

World Bank Group’s senior director of Infrastructure, Guarantees and Public-Private Partnerships, Laurence Carter, said that his organisation believes Islamic finance has an important role to play in addressing the development challenges facing the World Bank’s client countries.

“The World Bank Group’s involvement in Islamic finance is directly linked to our objectives of reducing poverty, promoting financial sector development, broadening financial inclusion, and building financial sector stability and resilience in client countries,” said Carter.

The one-and-a-half day conference is being attended by development practitioners, policy makers, regulators, and stakeholders involved in Islamic finance and infrastructure.

Originally published on www.nst.com.my