Minister: Infrastructure financing deficit in OIC countries reaches $290B per year

Member states of the Organization of Islamic Cooperation (OIC) are experiencing a particularly severe shortfall in infrastructure development, estimated at approximately $290 billion annually, Egyptian Minister of Planning and Economic Development Ahmed Rostom said during a panel discussion during the annual meetings of the Islamic Development Bank Group (IsDB) in Baku, Report informs.

"While the global need for infrastructure investment is estimated at approximately $6.9 trillion annually through 2030, the world faces a colossal financing gap of approximately $2.5-3 trillion annually. For OIC member countries, this problem is particularly critical, with a funding shortfall of approximately $290 billion annually. A significant portion of this shortfall is concentrated in the road sector (accounting for approximately 53%), as well as in the telecommunications, electricity, and water sectors, which account for approximately 38% of the infrastructure gap," the minister noted.

He emphasized that without finding innovative approaches and mechanisms to reduce this gap, the recovery process will be extremely difficult.

"I believe that one of the key practical outcomes of our discussions this week should be the development of mechanisms for joint action and the pooling of the potential of the Islamic Development Bank Group with other multilateral development banks to overcome this barrier," Rostom added.