Infrastructure Financing through Islamic
Finance in the Islamic Countries
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submitting qualification applications and four consortia ultimately submitting bids. The
winning consortium, TIBAH, consisted of TAV Holdings of Turkey and Al Rajhi Holding Group
and Saudi Oger from Saudi Arabia. The agreement was signed on October 29, 2011 (Oger
Telecom Limited, 2018). IFC’s involvement continued until the financial close of the project.
The funding bodies were Saudi British Bank (SABB), Arab National Bank (ANB), National
commercial bank (NCB) and Sumitomo Mitsui Banking Corp who all invested $296M, $316M,
$296M and $296M respectively (Caselli et al, 2015).
Case Study: Rehabilitation of the Disabled Centre in Alkharj (Riyadh, KSA) by Al Rajhi
In order to support the health services and treatment of those in need, AlRajhi Endowment
introduced the broad concept of charitable work to contribute to the health sector through
waqf . The waqf took steps to establish rehabilitation centres and supply
medical equipment as well as offer medical devices to the needy across Saudi Arabia and other
Islamic countries. The main objectives of the Alrajhi Endowment medical projects are
summarised as follows (Alrajh :
 Support the relevant authorities in the country with regards to health services in other
areas where medical centres or devices are needed.
 Provide support both financially and in-kind to the patients through the establishment
of health care centres in the areas in need of such services.
 To participate actively in other parts of the Alrajhi Endowment in order to realize the
principle of solidarity and cooperation among Muslims.
In line with these objectives, Alrajhi Endowment established care and rehabilitation centres
for the disabled in collaboration with the Ministry of Social Affairs in Riyadh, Saudi Arabia. The
target was to provide disabled people and others who are in need of such support with medical
devices ( Alrajhi Endowment KSA, 2016). The project was carried out at the Sheikh Saleh ibn
Abdulaziz Alrajhi Centre for the rehabilitation of the disabled in Alkharj (Riyadh, KSA).
The rehabilitation centre comprised 3 buildings which cover an area of land of approximately
15,000 m2. It was targeted to initially accommodate a total of 400 beds, the capacity of which
could be expanded later. The total cost of the construction was estimated to be around SAR 20
million. To finance this project, the social sector (waqf) was used, and the mode of financing
this project was through donations. The Alrajhi Endowment coordinated with a number of
medical and social agencies and charities in various regions of the Kingdom to start a program
termed the "Aoun disability program” to provide medical devices for people with disabilities.
Through this initiative, the proposal by the Ministry of Awqaf was initiated to provide different
medical devices to fulfil the needs of some registered patients. These kinds of services
normally go straight to the beneficiaries in conjunction with the charitable and medical
organizations. This has been of great help to people with disabilities to facilitate their health
needs.
4.4.6. Conclusion and Recommendations
The announcement of Vision 2030 was a clear and decisive shift by the Saudi government
signalling its belief that private sector participation in the future development of its much-
needed "mega" infrastructure projects was set to increase significantly. While traditionally the