Arab Coordination Group Partners with Private Sector to Drive Sustainable Development
The event spotlighted key initiatives, strategic investments, and pioneering success stories led by ACG member institutions. It underscored the global impact of public-private partnerships in advancing sustainable development and emphasized the importance of private-sector engagement in emerging and high-potential markets. The dialogue focused on fostering collaboration and scalable solutions, with a particular emphasis on infrastructure development and the critical role of small and medium-sized enterprises (SMEs) in promoting inclusive economic growth.
Established in 1975, the ACG is a strategic alliance of development finance institutions committed to delivering coordinated and effective development support. By leveraging shared expertise and facilitating knowledge exchange, the Group plays a vital role in helping developing countries achieve their social and economic development objectives. To date, the ACG has extended over 11,000 development loans across more than 160 countries.
The ACG comprises ten key institutions—four bilateral and six multilateral—including: Abu Dhabi Fund for Development
Arab Bank for Economic Development in Africa (BADEA)
Arab Fund for Economic and Social Development
Arab Gulf Programme for Development (AGFUND)
Arab Monetary Fund
Islamic Development Bank (IsDB)
Kuwait Fund for Arab Economic Development
OPEC Fund for International Development
Qatar Fund for Development
Saudi Fund for Development
Together, these institutions are driving sustainable impact through strategic collaboration with the private sector.
Related Topics :
ICIEC, SAPICO Announce Strategic Partnership to Boost Trade, Investment Opportunities
Saudi Arabia Announces Plan to Invest in Meat Self-Sufficiency
Saudi Family Forum Launches National Framework for Children's Online Safety
Board of Grievances Attains ISO 20000 Certification for IT Service Management
Short link :
Post Views: 1 Related Stories
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
6 days ago
- Arab News
Saudi Arabia's transportation boom opens doors for private investment
Saudi Arabia's transportation boom opens doors for private investment RIYADH: Saudi Arabia's rapidly expanding transportation sector is unlocking new investment opportunities for private players, both local and global, experts have told Arab News. Central to the Kingdom's Vision 2030 strategy, transportation development is seen as a key enabler for economic diversification and the drive to position Saudi Arabia as a global logistics, tourism, and business hub. With a growing emphasis on public-private partnerships, Minister of Transport and Logistic Services Saleh Al-Jasser announced during the third PIF Private Sector Forum, held in Riyadh in February, that private entities are expected to contribute around 80 percent of the targeted investments in the country's transport and logistics sector. He added that the total value of projects offered to the private sector — through privatization and other models — could reach SR240 billion ($63.95 billion). Joseph Salem, partner and travel, transportation and hospitality practice lead at Arthur D. Little, Middle East, told Arab News that public-private partnerships are at the core of this strategy. 'Privatization of key transport infrastructure, such as ports and airports, is creating new opportunities for private investment,' he said, adding: 'The development and management of cargo terminals through PPP agreements are attracting private efficiency and capital. The construction and engineering sectors are also benefiting, with numerous megaprojects like the Riyadh Metro and Neom's mobility network.' Alessandro Tricamo, partner at Oliver Wyman's transportation and services practice for India, the Middle East, and Africa, echoed similar sentiments and emphasized the importance of selecting suitable assets to attract investors. 'Globally, asset classes such as airports and seaports are typically considered bankable, with the potential to generate strong returns and attract private investment. Conversely, railways and public transport systems often require structured support from the government to become commercially viable,' said Tricamo. He added: 'In the Kingdom, there's still a need to refine how these projects are structured and presented to the private sector, as expectations are sometimes misaligned with market realities. Clear, realistic frameworks will help unlock greater private sector involvement and broaden the Kingdom's business landscape.' The Kingdom's logistics infrastructure is expanding rapidly. According to a report released by the General Authority for Statistics in December, the number of logistics facilities in the country has increased by 267 percent since 2021, with the Eastern Province leading in logistics hubs spanning 6.3 million sq. meters. 'Private companies are seizing opportunities in trucking, warehousing, freight forwarding, and e-commerce delivery services. Technology firms are also entering the market, offering solutions in AI, electric vehicles, and autonomous transport,' said Salem. He added: 'Overall, the transportation revolution in Saudi Arabia is creating a more diversified and competitive business environment. Private sector involvement is key to realizing the Kingdom's ambitious Vision 2030 goals.' Transportation as a growth enabler Anthoine Barthes, vice president of Al-Futtaim Automotive, told Arab News that transportation infrastructure underpins nearly every pillar of Vision 2030, acting as a foundation for economic growth. According to Barthes, transportation is not only about mobility but also about creating links between economic zones, facilitating trade, drawing investment, enhancing quality of life, and boosting tourism. 'A key objective is for Saudi Arabia to become a global logistics hub, and this requires state-of-the-art ports, efficient rail networks, extensive road infrastructure, and modern airports capable of handling significant cargo and passenger volumes,' said Barthes. He also pointed to the Riyadh Metro — with its six lines spanning 176 km — as evidence of the Kingdom's progress in developing effective public transport systems. 'These efforts, alongside continuous improvements to road infrastructure and the integration of smart city mobility solutions, are crucial for enhancing the quality of life, mitigating urban congestion, and fostering sustainable urban growth,' added Barthes. Salem noted that infrastructure development supports the growth of multiple industries, including tourism and entertainment, with road upgrades linking key cities to rising destinations such as Qiddiya and Amaala. He also highlighted how enhancements around Makkah and Madinah have improved accessibility for millions of religious visitors, reinforcing tourism and Umrah growth. Integrated logistics backbone Tricamo underlined that efficient logistics and supply chain management are fundamental to sustained economic development. 'A well-connected transport network that links urban and industrial centers and facilitates the smooth movement of goods and people is a key enabler of the Kingdom's broader economic ambitions. It directly impacts the reliability, speed, and cost-effectiveness of supply chains,' said Tricamo. Arthur D. Little's Salem believes that infrastructure modernization and the integration of advanced technologies are strengthening the Kingdom's global supply chain footprint. He pointed to Saudi Arabia's rise in the World Bank's Logistics Performance Index, climbing 17 spots to rank 38th globally in 2023. 'Vision 2030 also focuses on expanding multi-modal freight capacity. The rail network will grow from 3,650 km to 8,000 km, enhancing logistics. Air cargo capacity is set to increase to over 4.5 million tonnes annually by 2030, while Saudi ports will handle up to 40 million TEUs,' said Salem. He added: 'Additionally, 40 new logistics centers across 100 million sq. meters will attract global companies, positioning Saudi Arabia as a logistics hub. These efforts are expected to reduce logistics costs, improve reliability, and grow the sector to $57 billion by 2030.' Impact on the business landscape Barthes said ongoing advancements in the Kingdom's transport infrastructure are expected to reshape the business environment. He noted that reduced logistics costs, quicker deliveries, and agile supply chains will benefit a wide range of industries. 'A world-class infrastructure is a primary magnet for foreign direct investment. International companies are more willing to establish operations, knowing they can efficiently move goods and people,' said Barthes. Salem emphasized how transportation development enhances the ease of doing business and improves trade connectivity through upgraded logistics hubs. 'The growth of tourism, retail, and real estate sectors is another benefit. Better transportation networks make it easier for people to travel and for goods to be delivered, driving demand in these industries,' said the Arthur D. Little partner. He added that modernized ports, roads, and rail corridors are boosting trade volumes, while domestic improvements in connectivity are helping to meet growing internal demand across agriculture, retail, and construction. Technology-driven transformation Tricamo highlighted the vital role of digital innovation in shaping Saudi Arabia's future transport ecosystem. 'Digital solutions — from smart ticketing and real-time tracking management systems — will be essential for building a future-ready, user-centric transport ecosystem,' he said. Salem echoed these views, noting the Kingdom's strong push for smart infrastructure, digital logistics, and electric mobility. He added that electric vehicles are reshaping transportation, supported by investments in thousands of fast-charging points across 1,000 locations by 2030. The goal is to have 30 percent of vehicles in Riyadh electrified by then. 'Smart cities like Neom are integrating IoT sensors, AI-driven traffic management, and predictive congestion systems to optimize transportation. These technologies improve traffic flow, reduce accidents, and enhance the overall commuter experience. In logistics, automation and AI are being used to streamline freight operations, reduce errors, and optimize delivery routes,' said Salem. Overcoming challenges Salem acknowledged that the Kingdom faces hurdles such as overreliance on road transport, the country's vast geography, regulatory bottlenecks, skill shortages, and climate-related challenges. He emphasized that the government is proactively addressing these with targeted initiatives. 'To reduce reliance on roads, Saudi Arabia is investing heavily in rail and public transit projects like the Riyadh Metro. The vast size of the Kingdom is being addressed by extending transportation networks to remote areas, ensuring equitable access to modern infrastructure,' said Salem. He added that regulatory reforms, including the establishment of the National Center for Privatization, are streamlining approval processes and attracting private sector investment. 'Through partnerships with global firms, Saudi Arabia is transferring knowledge and building local expertise to overcome skills gaps,' said the Arthur D. Little partner. Tricamo pointed to the scale of investment as the primary challenge facing transport infrastructure expansion. 'In Saudi Arabia, the ambitious scope and accelerated timeline of Vision 2030 add further complexity, requiring multiple high-value infrastructure projects to be developed simultaneously. The private sector can play a key role in easing this burden,' he said. The Oliver Wyman partner concluded by emphasizing the need for careful asset selection to balance commercial viability and government support.
Arab News
02-08-2025
- Arab News
IsDB drives development across over 2 percent of world's countries
JEDDAH: A year after marking its 50th anniversary, the Islamic Development Bank remains at the forefront of global development finance, recognized for its distinctive model that blends Shariah finance principles with strategic investments. Established in August 1974 and commencing operations in October the following year in Saudi Arabia, the IsDB has grown into a distinctive institution within the global development landscape, championing ethics, equity, and solidarity among its 57 member countries and impacting one in five people worldwide. The bank was founded through a visionary initiative led by Saudi King Faisal bin Abdulaziz and other Islamic leaders to foster development cooperation among member states of the Organization of Islamic Cooperation and enhance the wellbeing of Muslim communities. Financial strength The IsDB is recognized as one of the world's most active multilateral development banks and a global leader in Islamic finance. It boasts prestigious AAA credit ratings by Moody's, S&P, and Fitch — reflecting its strong financial stability and low risk. With a subscribed capital of $76 billion, the bank is well-positioned to support large-scale development projects and foster economic growth across its member countries. The Jeddah-based organization has evolved into a group of five institutions representing member states across four continents, with total approvals exceeding $182 billion for more than 12,000 development projects, as of April 2024. Built on strong partnerships and trusted governance, the bank continues to promote sustainable socioeconomic development. Saudi Arabia's enduring support remains crucial as the IsDB charts its strategic future, committed to tackling today's challenges and strengthening solidarity throughout the Muslim world. Among its strongest partnerships is with Turkiye, a founding member that has received nearly $13 billion in IsDB approvals across 545 projects. In April 2024, both sides launched a new $6.3 billion framework to boost sustainability, productivity, Islamic finance, and digital transformation, reaffirming the bank's long-term commitment to Turkiye's development. Speaking to Arab News, Abdulmohsen Al-Alshiekh, assistant professor and board member of the Saudi Economic Association, said over the past five decades, the IsDB has played a critical role as a development catalyst across the Islamic world. He added that its effectiveness can be assessed on several fronts, including Infrastructure development, human capital investment, Shariah-compliant financing, crisis response, and South-South cooperation. 'IsDB has financed thousands of projects in transport, energy, water, and urban development, significantly improving connectivity and public services across its member countries,' Al-Alshiekh said. He added that through scholarship programs, capacity-building initiatives, and education sector support, IsDB has contributed to advancing education, vocational training, and knowledge economies in low- and middle-income member states. As for the bank's Islamic law financing compliance, Al-Alshiekh said that one of IsDB's unique strengths is its adherence to Islamic finance principles. 'By promoting risk-sharing and asset-backed investments, it has provided an alternative to interest-based lending and contributed to the growth of the Islamic finance industry globally,' he added. Crisis response Al-Alshiekh said the bank has shown agility in responding to global crises, including the COVID-19 pandemic, by mobilizing special funds, providing concessional financing, and supporting resilience and recovery efforts in vulnerable member countries. He added that the bank continues to foster cooperation among member states through trade finance, investment insurance, and technology transfer initiatives, reinforcing its role as a key platform for intra-OIC economic collaboration. Development reach Al-Alshiekh noted that countries across sub-Saharan Africa, the MENA region, South Asia, and Southeast Asia have benefited from IsDB's interventions, underscoring several priority sectors including infrastructure, education, health, agriculture, and trade. 'These investments have helped close infrastructure gaps and improve regional integration, especially in landlocked and low-income countries,' he added. On education and health, the assistant professor said the IsDB has funded scholarships, technical training, hospitals, and pandemic response. It has also supported irrigation, rural development, and agribusiness in sub-Saharan Africa and South Asia to fight poverty and boost food security. 'Countries such as Senegal, Niger, Nigeria, and Sudan have received substantial support in infrastructure, agriculture, and education,' he said. Countries recovering from conflict or facing economic challenges, such as Yemen, Egypt, Morocco, and Tunisia, have received significant assistance, while Bangladesh, Pakistan, Indonesia, and the Maldives have also benefited from a mix of infrastructure, health, and education investments, Al-Alshiekh added. Unequal model Unlike conventional multilateral development banks, all the bank's financial transactions comply with Islamic principles. 'One of IsDB's unique strengths is its adherence to Islamic finance principles,' Alalshiekh said 'By promoting risk-sharing and asset-backed investments, it has provided an alternative to interest-based lending and contributed to the growth of the Islamic finance industry globally.' Youssef Saidi, a research fellow at the Economic Research Forum, emphasized the importance of distinguishing the IsDB's model from that of conventional multilateral development banks. 'To understand the unique contributions of the IsDB, it is essential to examine how its development model contrasts with those of the conventional multilateral development banks, which often focus on standardized approaches that may not fully address the unique needs of developing countries, potentially limiting their effectiveness in fostering sustainable growth,' Saidi told Arab News. He added that the IsDB focuses on Islamic finance principles, socio-economic development, and innovative approaches to financing and project implementation. 'These characteristics emphasize the importance of adaptability and responsiveness to the specific needs of member countries, which is essential for effective development financing,' he said. He noted that this adaptability allows the IsDB to forge partnerships that boost funding and enhance project delivery, similar to other multilateral development banks. Future priorities As the global development landscape becomes increasingly complex, both Saidi and Al-Alshiekh agree that the IsDB must recalibrate its strategic focus to address emerging challenges. 'The challenges facing the IsDB include addressing governance issues, ensuring effective resource allocation, and adapting to the evolving needs of its member countries to enhance development outcomes,' Saidi said. To maintain its relevance, the IsDB must navigate challenges such as regional disparities in development, ensuring equitable resource allocation, and fostering innovation in Islamic finance practices, he also said. Looking ahead, Al-Alshiekh said the IsDB is expected to broaden its role in key areas such as climate action through green sukuk, private sector partnerships focused on small and medium enterprises, fintech, digital infrastructure and e-governance, and support for fragile regions via stabilization funds and humanitarian-development-peace frameworks. Enduring values While the IsDB shares several features with conventional development banks, including alignment with the UN Sustainable Development Goals, it remains rooted in a distinct ethos. 'Unlike conventional MDBs, IsDB operates entirely on Islamic finance principles. This means it avoids interest-bearing loans and instead uses instruments like Murabaha, or cost-plus sale, ijara, or leasing, and istisna'a, or construction financing, as well as sukuk,' Al-Alshiekh explained. He added that the IsDB's approach is value-based, emphasizing ethical finance, social justice, and equitable growth that aligns with Islamic principles. 'This contrasts with the often secular and market-oriented frameworks of conventional MDBs.' Governance is another differentiator. 'IsDB's governance model is rooted in the OIC (Organisation of Islamic Cooperation), with its members being exclusively Islamic countries,' he said. This allows for a greater cultural and strategic alignment among its stakeholders, while conventional MDBs tend to have a broader, more diverse global membership, he noted. Al-Alshiekh also underlined the principle of solidarity that guides the bank's resource allocation. 'The IsDB emphasizes 'Islamic solidarity', often prioritizing needs-based resource allocation and South-South cooperation, in contrast to performance-based lending criteria or conditionalities common in conventional MDBs,' he said.
Leaders
31-07-2025
- Leaders
ITFC CEO Meets with Egypt's Minister of Planning, Economic Development
Eng. Adeeb Al Aama, Chief Executive Officer of the International Islamic Trade Finance Corporation (ITFC) and a member of the Islamic Development Bank (IsDB) Group, held a meeting yesterday with Egypt's Minister of Planning, Economic Development, and International Cooperation, Dr. Rania Al-Mashat, during his visit to Cairo. The discussion centered on enhancing cooperation in key sectors such as energy and food commodities, along with promoting investment development through the second phase of the Aid for Trade Initiative for Arab States (AfTIAS) program. Both parties underscored the significance of supporting small and medium-sized enterprises (SMEs) and empowering women in trade. They also highlighted the strategic partnership between ITFC and Egypt, which plays a vital role in driving sustainable development and fostering regional integration through the Islamic Development Bank Group's integrated trade solutions. Related Topics : ITFC Participates in Uzbekistan Trade Finance Conference 2025 Saudi Arabia executes a young rape suspect in the Eastern Province Tehran eyes $1 bn of trade with Saudi Arabia: Finance Minister Saudi, U.S. Representatives Hold Economic Discussions Short link : Post Views: 22 Related Stories
