Infrastructure Financing through Islamic
Finance in the Islamic Countries
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5 Policy Recommendations
After identifying the issues from the literature and analysing the country case studies in the
previous chapters, this section provides policy recommendations at different levels. The
overall status of the infrastructure and its quality in the countries included in the study is
shown in Chart 5.1.75 The overall status of infrastructure is the best in the UK, a developed
country. The status of infrastructure of three countries, Malaysia, Saudi Arabia and Indonesia
are better than the OIC average, with Malaysia scoring the highest. Nigeria, however, scores
less than the OIC average, indicating the poor status and quality of infrastructure in the
country.
Chart 5. 1: Infrastructure Status in Sample Countries (0-7 Best)
Source: WEF (2018), The Global Competitive Index Historical Database
5.1. Infrastructure Related Strategy and Policies
The country case studies show that strategy and policies related to infrastructure development
can be broadly categorized into three factors. First, given the large size of infrastructure
projects, there is a need to have long, medium and short-term plans for infrastructure
development. Once the infrastructure needs are determined, an appropriate environment has
to be created to increase the role of the private sector. Finally, there is a need to have
additional supporting institutions that can help promote the involvement of the private sector
in infrastructure investments. The lessons learnt from the specific issues in these factors from
the country case studies are discussed below.
5.1.1. Long, Medium and Short-term Strategies and Plans
All countries have some sort of plan that incorporate infrastructure development issues. While
in some cases countries have longer term national strategies that would have indications of the
role of infrastructure in achieving development goals, in other countries there are specific
medium and short term plans related to infrastructure. Malaysia introduced Vision 2020 in
1991 and identified the role that sound infrastructure would play in achieving the vision. The
75 Information on Sudan is not reported in the WEF (2018) database.
3.6
4.5
5.5
2.0
5.2
6.0
3.7
4.1
5.3
2.3
4.9 5.0
0
1
2
3
4
5
6
7
OIC Average Indonesia Malaysia Nigeria Saudi Arabia United
Kingdom
Index (0-7 best)
Overall Infrastucture Quality of overall infrastructure