Private Sector Powering Sustainable Growth Across The OIC
The role of the private sector in driving development across the Organisation of Islamic Cooperation region took centre stage at the OIC Business Leaders’ Summit in Istanbul.
Islamic Development Bank Group Chairman H.E. Dr. Muhammad Al Jasser delivered a keynote address that reaffirmed the sector’s indispensable role in employment, innovation, and economic transformation. He reminded delegates that businesses, from family‑run enterprises to multinational groups, already underpin economic activity across member states.
As he noted in his address: “Private sector actors generate over 90 percent of jobs and contribute to most of the value added.” That reality mirrors global development trends, where small and medium enterprises often form the backbone of national economies.
Addressing Barriers Holding Back Growth
Dr. Al Jasser highlighted a series of entrenched challenges impeding private sector expansion. These include regulatory barriers, fragmented markets, high financing costs, and infrastructure deficits. He emphasised that such hurdles not only slow business growth but also limit the ability of member countries to build resilient and inclusive economies.
He stated: “Regulatory complexity, high financing costs, market fragmentation, and inadequate infrastructure must be addressed decisively if we are to unlock the sector’s full potential.” His call reflects a broader global consensus, echoed by institutions such as the OECD and World Bank, which repeatedly stress the importance of regulatory reform, improved credit access, and infrastructure investment for emerging markets.
Infrastructure And Digital Transformation Leading The Agenda
Investment in infrastructure remains a cornerstone of the IsDB Group’s development strategy. According to the Bank, infrastructure gaps continue to suppress productivity and restrict access to regional and global markets. Upgrading transport corridors, strengthening logistics, and improving energy resilience are all essential for long‑term competitiveness.
Dr. Al Jasser also noted the accelerating importance of digital transformation. He stressed that digital ecosystems can boost productivity, reduce administrative burdens, and expand access to finance, particularly for SMEs. Many OIC countries are currently expanding broadband networks, digital payment systems, and smart‑government platforms. Global research shows that economies with strong digital infrastructure can add several percentage points to annual GDP growth.
He underlined this direction with a clear message: “Investments in infrastructure, digital transformation, trade facilitation, and the empowerment of youth and women will not only shape better policies but also usher in a new era of public–private partnership.”
Mobilising Capital Through IsDB Group Entities
A substantial portion of the keynote focused on how the IsDB Group continues to mobilise resources, reduce investment risks, and encourage sustainable private‑sector‑led growth. Its main private sector institutions — ICD (Islamic Corporation for the Development of the Private Sector), ICIEC (Islamic Corporation for the Insurance of Investment and Export Credit), and ITFC (International Islamic Trade Finance Corporation) — remain central to that mission.
These entities provide financing, trade facilitation, credit insurance, and advisory services aimed at strengthening business environments. Globally, credit guarantee and insurance schemes such as those offered by ICIEC have been shown to catalyse significant additional private investment by reducing exposure to political and commercial risks.
At the Summit, Dr. Al Jasser highlighted the scale of the Group’s impact to date: “By the end of Q3 this year, the IsDB Group had extended over US$24 billion in financing and insurance coverage, helping mobilize more than US$10 billion through strategic partnerships.” Those figures underscore the Bank’s role as a critical enabler of development capital.
Empowering Youth And Women For Inclusive Development
Human capital development was also a major theme. Empowering young people and women across member states remains a structural priority for the IsDB. Many economies within the OIC region possess fast‑growing youth populations, representing both an opportunity and a challenge.
To harness that potential, the Bank continues to support programmes that enhance skills, entrepreneurship, and employability. International studies consistently show that economies with strong female labour force participation see higher growth rates, greater social resilience, and improved innovation outcomes.
Dr. Al Jasser’s remarks mirrored this evidence, stressing that inclusive participation is vital for sustained economic progress.
Trade Facilitation As A Catalyst For Regional Integration
Trade facilitation is another pillar of the Bank’s agenda. Dr. Al Jasser urged member states to reduce cross‑border bottlenecks, simplify customs processes, and harmonise regulations. According to the World Trade Organization, efficient trade procedures can reduce export times by more than 40 percent and significantly boost SME participation in global markets.
Improving trade corridors across Africa, the Middle East, and Asia will enable businesses to scale more effectively, encouraging investment and generating new regional value chains.
A Strategic Vision For The Next Five Years
The keynote underscored the IsDB Group’s unwavering commitment to private sector development under its current five‑year corporate strategy. Its focus links economic growth with sustainability, resilience, and social inclusion.
Dr. Al Jasser reinforced this direction with a clear message: “Fostering private sector development remains a cross‑cutting priority under our ongoing five-year corporate strategy, reflecting our commitment to building a resilient and inclusive economic future across the OIC region.”
This strategic roadmap aligns with global development frameworks and positions the Bank as a long‑term partner for governments and investors seeking sustainable impact.
Looking Ahead To A More Resilient OIC Economy
The OIC Business Leaders’ Summit highlighted a growing recognition that the private sector is central to the region’s future prosperity. With stronger infrastructure, deeper digital integration, and improved access to capital, member countries are well‑positioned to accelerate growth and broaden economic participation.
Dr. Al Jasser’s message was ultimately clear: collaboration between governments and businesses will shape a more resilient, competitive, and inclusive economic landscape for the decades ahead.
