The Asian Development Bank (ADB) and the Islamic Development Bank (IDB) agreed, in June 2009, to set up Asia's first major multi-country Islamic infrastructure fund.

The Islamic Infrastructure Fund, targeted at US$ 500 million (€ 347,000 million), will make Shari'ah-compliant equity investments in the 12 countries that are borrowing members of both development banks; currently Afghanistan, Azerbaijan, Bangladesh, Indonesia, Kazakhstan, Kyrgyz Republic, Malaysia, Maldives, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan.

Most of Asia is in urgent need of additional spending on infrastructure, both development banks say. As an example they mention Indonesia, where only 39% of urban dwellers have access to piped water

Related news:

• Asia: Islamic Asia Infrastructure Fund proposed, Source Weekly, 19 Aug 2008
• Infrastructure fund: Japan announces green loan fund for crisis-hit developing countries, Source Weekly, 25 Mar 2009

Web site: ADB - Islamic Infrastructure Fund project profile

Source: ADB, 02 Jun 2009

Tags: east asia & pacific, financing, south asia