Qatar and Oman are encouraging the use of Middle East-backed financing, particularly Islamic instruments, to support key infrastructure projects in the Global South, officials from the Gulf states said.
Accessing Shariah-compliant financial instruments would enable countries across Asia, Africa and Latin America to address funding gaps, Mansoor Al Khater, chief executive of the Qatar Financial Centre, said at the Belt and Road Summit in Hong Kong on Thursday.
“Especially when we look at the [Global] South, what they are looking for is access to capital, and the Middle East can be one of the regions that can provide that capital because we are on a high balance sheet and we have good income statements,” he said.
“And since the Middle East is also having the capital and can act as a regional hub, we can bridge that relationship with the South and this is very important for us.”
Mr Al Khater did acknowledge that Islamic financing is not as popular as traditional banking instruments, but is ideal for mobilising new capital.
“Islamic financing … is an opportunity that is untapped,” he said. “Islamic finance is really going to be an additional vehicle that would complement the existing conventional financing model. It doesn't mean it will replace … both can go as co-financing to reach the demand of infrastructure development that is needed around the world.”
The Islamic finance industry continues to demonstrate “remarkable vitality and global momentum”, according to the latest ICD-LSEG Islamic Finance Development Report. The industry jumped by 21 per cent year-on-year to $5.98 trillion in 2025, it said.
Saudi Arabia is the world's biggest issuer of sukuk, or Islamic bonds, accounting for 17 per cent of the global total, the report showed.
It is unclear how much Islamic financing is being used for Belt and Road projects. However, it can underpin long-term opportunities that would be able to nurture partnerships, especially in emerging markets, said Muneer Al Muneeri, deputy president for operations at the Oman Investment Authority.
“Ultimately … we want to make sure that these regions develop and continue bringing opportunities and on a long-term basis,” he said.
The OIA helped jump-start the first private equity investors in Uzbekistan, helping develop the system in the Central Asian nation, Mr Al Muneeri said. The OIA currently has investments in more than 20 funds.
“They are able to source the right transactions for us, able to source the right technologies. They're able also to connect this part of the world to our part of the world,” he said.
