Increasing the Resilience of the Food Systems
In Islamic States in Face of Future Food Crises
149
comprise a mix of financially lucrative private equity investments and include a significant
allocation of Islamic philanthropy funds that are dedicated to the near eradication of hunger in
the Islamic world.
The table below shows the different types of funds needed toeffectively support OIC food system
development and national efforts to strengthen food security. The government's role would be
to facilitate such funds and provide support through tax incentives, subsidies , and sovereign
wealth fund commitments.
The ability for OIC countries to access funds could be made contingent upon countries
committing to establish food security and engage in trade with other OIC members.
Table 77: Funding Areas
Area of Funding Focus Suggested Providers Example
Agriculture
infrastructure
development
Farming sector
development and
projects
Islamic Development
Bank; Private
investors
Online land investment projects on
Acetrader584
Social safety nets Immediate cash
assistance for food
UNHCR; National tax
and Zakat collection
bodies (OIC); Islamic
financial institutions
Refugee Zakat Fund (UNHCR)585
Agricultural
research and
commercialization
Dedicated project
management to
address specific
challenge areas
WHO; Islamic
Development Bank
USDA competitive grant funding to
address a specific food safety
challenge586
Cross-OIC
collaboration
projects
Dedicated cross-
country supply chain
development
initiatives
Islamic Development
Bank; Private equity;
Pension funds
Collaboration on agriculture
development between Russia’s
Sovereign Wealth Fund and
Vietnamese Food Company587
Source: DinarStandard Analysis
While the Islamic Development Bank will continue to play an important role, government
institutions, private investors andmultilateral organizationswill alsoneed to support OIC -wide
food security funds.
Sovereign Wealth Funds in the OIC will play a particularly important role in supporting Food
security and can have a substantial impact. The top 20 sovereign wealth funds in the OIC region
had assets totaling $3.2 trillion as of June 2018. Private investors can alsoplay a substantial role,
with a record amount of "dry powder," or unutilized capital, estimated at $1.7 trillion at the end
of 2017.588
Multilateral institutions such as the World Bank and the UNFAOwill play an important role, but
Zakat Funds are also important, hence the UNHCR’s Refugee Zakat Fund is an important
584 Signup page. AcreTrader websit
585 My Zakat. UNHC
586 “Agriculture and Food Research Initiative Competitive GrantsProgram.”
587 “RDIF and Vietnamese TH Group launch the construction of integrated dairy complex in Kaluga region.” Russian Direct
Investment Fund. Sep 07, 201
588 “State of the Global Islamic Economy Report.” Thomson Reuters and DinarStandard. 2018.