Mobilizing Islamic Finance: Basics & Relevance to PPPs

Islamic financing is starting to emerge as a significant source of funding for PPP infrastructure projects, such as airports, toll roads, sea ports, independent power plants, and hospitals. With the increased effort by emerging economies to mobilize private financing for infrastructure through the use of PPPs, and the limited sources of debt and equity financing, global trends show that two predominant Islamic finance modes are being used for financing PPP projects: Ijara (lease purchase finance) and Istisna’a (commissioned manufacture of specified asset). Many governments are now looking to understand the legal and regulatory issues relevant to the flow of Islamic financing, whether in the form of debt-based contracts or equity-based contracts, and what project structures can or cannot work well with these features. This webinar series will focus on increasing knowledge on Islamic financing within countries looking for infrastructure finance, and better facilitation of the use of Sharia-compliant instruments for mobilizing private investment in infrastructure through PPPs.