Infrastructure Financing through Islamic
Finance in the Islamic Countries
16
Table 1.3: List of OIC Countries to be Used for Case Studies
Country Region Legal System
Familye
Income
Grouping
Size of IF sector:
% of National Banking
Assetsa
1. Indonesia Asia Civil Law Lower Middle
Income
5.6b
2. Malaysia Asia Common Law Upper Middle
Income
30.0c
3. Nigeria Africa Common Law 0.28d
4. Saudi Arabia Arab Islamic/
Civil Law
High Income 51.1
5. Sudan Africa Islamic/
Common Law
Lower Middle
Income
100
a-Data for 2017H1 (source IFSB 2017) except otherwise indicated; b-Data for 2017 (source OJK 2017); c-
BNM (2017); d-Central Bank Nigeria; World Bank (2004). Note that the countries are classified according to
legal origins such as English, French, etc. While the English are considered to be common law, the latter
belongs to civil law regimes.
While most of the information/data is collected from secondary sources, useful information is
also gathered for country case studies through interaction with relevant personnel and
officials in their respective countries. Information and data will also be gathered through
interviews and discussions with relevant officials and stakeholders to further understand the
country specific issues related to the use of Islamic finance in infrastructure development.
The research is descriptive and evaluative and attempts to arrange, summarize and present
data/information to enable meaningful interpretation. Other than analyzing quantitative data
on the size and status of the infrastructure financing needs and the Islamic financial sector in
different jurisdictions, some of the analyses will be qualitative and conceptual in nature. The
analyses will produce material that can identify deficits in the infrastructure investment needs,
identify the role of Islamic finance in filling these gaps, and come up with appropriate policy
recommendations.
1.4. Overview of the Study
Other than this introduction chapter, the research report has five additional chapters. A brief
overview of the contents of these chapters is given below.
Chapter 2: Infrastructure Financing
Chapter 2 discusses various issues related to infrastructure financing. The chapter starts by
identifying the special features of infrastructure financing and then covers issues related to
infrastructure planning. After discussing the sources of infrastructure financing, the products
and approaches for infrastructure financing are presented. The chapter ends by examining the
factors affecting financing long-term infrastructure projects and then identifying infrastructure
needs and financing gaps in OIC MCs.