Syndicate content

Saudi Arabia

How Islamic finance can boost infrastructure development

Joaquim Levy's picture
Queen Alia International Airport, Jordan. © littlesam/Shutterstock
Queen Alia International Airport, Jordan. © littlesam/Shutterstock

In many developing countries, there are glaring gaps in the quantity of infrastructure per capita. For example, power generation capacity per person in these countries is only one-fifth that of advanced economies. We know that expanding infrastructure investment in economic and social services is an effective way both to promote inclusive growth and to foster local resilience to global shocks. In particular, investment in quality, sustainable infrastructure helps finance the transition towards a low-carbon, more environmentally friendly economic model. This happens notably in the renewable energy and low-emission transport sectors. Given the scale of resources needed to address the infrastructure investment gap, mobilizing the private sector for this goal has become imperative, especially in countries where financial transactions in banking and capital markets follow Islamic law (or shari’ah) principles.
 
The conventions of Islamic finance are particularly suitable for infrastructure development. They define an asset-oriented system of ethical financial intermediation built on the principles of risk-sharing in lawful activities (halal) rather than rent-seeking gains. This “entrepreneurial” approach by investors requires a high degree of transparency and creates incentives to monitor projects more carefully, which, in turn, strengthen the efficiency in building and operating infrastructure.

Women working behind the wheels? Not everywhere – yet

Katrin Schulz's picture
Also available in: Español  | العربية



Starting this month, an estimated 9 million women will be able to get behind the wheel in Saudi Arabia after the historic announcement in September last year lifting the ban on women from driving. While international attention has often focused on the driving ban on women in Saudi Arabia, it has often missed the fact that women in several other countries are legally debarred from certain driving jobs. The World Bank’s recently released Women, Business and the Law 2018 report finds that 19 countries around the world legally restrict women from working in the transport sector in the same way as men.

The power of sunlight: incentivizing private investment in solar PV

Susanne Foerster's picture


Photo: Pixabay Creative Commons

Solar power is experiencing a surge in popularity across the globe. It prevents carbon emissions, helps diversify the power generation mix, reduces dependence on fossil fuels, and can increase off-grid energy access.
 
With falling costs of solar photovoltaic (PV) technology, advancing storage technology, and grid integration, prices for solar PV electricity have been falling rapidly around the world and solar is now in many countries price competitive with traditional energy sources and has become particularly attractive for developing countries.
 

Making Sand into Gold

Wael Zakout's picture
Haider Y. Abdulla | Shutterstock.com - Property Landscape in Dubai

Those of you who have visited Dubai in recent years may relate to what I am going to say: Dubai is in the middle of the desert, and its land, not that long ago, was really worth nothing. Now it is one of the most vibrant international cities in the world. All this happened in a relatively short time span.

Raising awareness to root out violence against women and girls

Paula Tavares's picture
A Girl Entering a High school Courtyard © Charlotte Kesl / World Bank
A student leader in her school's anti-violence and coexistence project entering the school's courtyard     © Charlotte Kesl / World Bank

We live in a world where one in every three women has suffered some form of gender-based violence in her lifetime. This statistic translates to a staggering 1 billion women globally who have been abused, beaten or sexually violated because of their gender. 
 
Every November 25, the International Day for the Elimination of Violence against Women, we are reminded that gender-based violence continues to be a global epidemic with dire consequences for women, their families and entire communities. It leads to negative mental and physical health consequences for women and limits their decision-making ability and mobility, thereby reducing productivity and earnings. Beyond the individual harm, it also has substantial economic costs. Global estimates suggest the cost of gender-based violence to be as high as 3.7 percent of GDP – or $1.5 trillion a year.

Reforming Employment Services: Three Steps to Big Change

Jacqueline Mazza's picture
Increasing the number of jobs publicly listed, enabling public and private institutions to better connect workers to jobs will not likely solve the jobs problem in developing countries. (Photo: Jonathan Ernst / WorldBank)


With the right kind of reforms, public employment services can do a better job of matching job seekers from poor households. In low and middle-income countries, individuals from poor households find jobs through informal contacts; for example asking friends and family and other members of their limited network. But this type of informal job search tends to channel high concentrations of the poor individuals into informal, low-paid work.

Job seekers especially from poor households need bigger, more formal networks to go beyond the limited opportunities offered by the informal sector in their local communities. This is where public employment services can help, but in developing countries many of these services just simply do not work well: they suffer from limited financing and poor connections to employers, and governments are looking for ways to reform and modernize them to today’s job challenges.

There are lots of cases where developing countries have improved their public employment services and these can serve as models. The lessons from these successful reforms can be distilled and replicated. Based on our recent publication, here are three case-tested strategies that improved the performance, relevance and image of public employment services.

5 things you need to know about the economies of the Middle East and North Africa region in 2017

Web Team's picture
World Bank Vice President, Hafez Ghanem addresses the key factors influencing the economies of the Middle East and North Africa region, and the steps needed to promote more sustainable growth and unlock the potential of the region’s large youth population.
What are the major factors affecting the economies of the Middle East and North Africa region?

Back to School 2017 – Part II

Web Team's picture


This is the second part of our interview with with Safaa El Tayeb El-Kogali, World Bank Practice Manager in the Education Global Practice, on the challenges faced by the region’s education systems and the efforts to address them.

Back to School 2017

Web Team's picture


On the heels of the first World Development Report focused entirely on education, and its critical importance for stable and inclusive societies, we launch our annual ‘Back to School’ series that focuses on the state of education in the Middle East and North Africa region. We begin the series with a two-part interview with Safaa El Tayeb El-Kogali, World Bank Practice Manager in the Education Global Practice, on the challenges faced by the region’s education systems and the efforts to address them.

Watering the Future: Seizing Water’s Potential to Support Development and Stability in the Middle East and North Africa

Torgny Holmgren's picture
Water in Gaza - Ahmad Dalloul, Palestinian Water Authority

History repeats, history rhymes and sometimes history regresses. Wandering through cities and fields in the Middle East and North Africa a thousand years ago, you would have been struck by the security of water supplies, the irrigation enabling highly productive farms and governance structure in place to allocate and value water in a sustainable way, supporting a flourishing civilization.

Pages