Saudi Arabia-based Islamic Development Bank (IDB), the Muslim world's premier multilateral financial institution, has said its 56 member countries are expected to invest $1.2 trillion (Dh4.4trn) in infrastructure development over the next 10 years mainly in the telecommunications, transport and water and power sectors.
The bank estimated that about $675 billion would be pumped into telecommunications and power projects in the Muslim countries, and nearly half of it will be in the Gulf Co-operation Council (GCC) states.
The IDB said about $290bn would be invested in expanding and upgrading air, sea and land transport infrastructure with Asian Muslim countries investing half of the amount.
The bank said its member countries would also pump in $115bn to expand and improve the provision of water and sanitation services over the next decade. Arab and African members of IDB will make up about 60 per cent of the investment.
Dr Amadou Boubacar Cisse, the IDB vice-president, said at a seminar hosted by the bank that while only a fraction of the investment requirements is currently being met by the private sector, IDB sees a greater role for the private sector in meeting demand for infrastructure services over the next decade. Commenting on IDB's role in infrastructure financing, Dr Cisse said the bank expected to provide up to $25bn in the infrastructure sector over the next 10 years. This financing would be mainly in power, transport and water projects.
He said: "Climate change adaptation and mitigation is expected to stimulate further demand for investment in cleaner energy, energy efficiency as well as water storage infrastructure and flood protection measures.
"Similarly, the ongoing concern over global food security is expected to trigger a new wave of major hydraulics infrastructure schemes in IDB member countries, in order to achieve greater food security through sustainable agricultural development underpinned by sound water resources management."
Last year, the IDB provided about $2bn of financing for infrastructure projects in more than 30 countries in Africa, Asia, Europe and the Middle East.