Infrastructure Financing through Islamic
Finance in the Islamic Countries
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To put into perspective the relative size of the projected deficits in infrastructure investments,
Chart 2.1.4 also shows the infrastructure gaps as a percentage of GDP in 2015. A higher
percentage of the gap relative to the GDP represents the relative larger size of the
infrastructure investments that would be required and therefore greater difficulty in satisfying
the financing needs. For example, though the infrastructure investment gap in Senegal during
2016-2040 will be USD 19 billion, this represents close to 136% of the country’s GDP in 2015.
On the other hand, the deficit in infrastructure investments in Indonesia during the period is
USD 70 billion, which is only 8.1% of the GDP of 2015 and is more manageable.
The information in Chart 2.14 shows that there will be a huge need for, and gaps in, financing
infrastructure projects globally. Given the commitments made to achieve the SDGs, the need to
fill these investment gaps becomes more acute. Since it is difficult for governments to provide
the massive demands of funding needed to develop the infrastructure sectors, there is a need
for the private sector to also contribute to this effort. In this regard, the financial sector plays a
very important role to mobilize the resources. The next chapter discusses the role of Islamic
finance in providing the products and structures through which investments can be realized.