Islamic Development Bank stresses importance of upfront investment to enhance economic resilience

Kuala Lumpur, Oct 14 (KUNA) -- Muhammad Al-Jasser, President of the Islamic Development Bank Group, stressed on Wednesday the importance of upfront investment in infrastructure, supply chains, and productive capacities to enhance the resilience of economies in the face of global trade disruptions. The bank said in a statement that this came during a session held in Bangkok on the sidelines of the annual meetings of the International Monetary Fund and the World Bank Group, titled “Diversifying Trade in Turbulent Times and Its Implications for Stability and Economic Growth.”

The statement quoted Al-Jasser as saying that diversifying exports alone does not guarantee improved competitiveness, noting that a country may achieve better results if it focuses on producing a limited range of goods efficiently and competitively, rather than seeking to export a wide spectrum of products. He also highlighted the importance of regional integration, particularly for developing and landlocked countries that rely on neighboring states to access global markets, citing the Rogun Dam project in Tajikistan, which costs approximately $6 billion.

For her part, Odile Renaud-Basso, President of the European Bank for Reconstruction and Development, said during the session that “the growth model based on globalization and market openness over the past three decades is facing challenges due to geopolitical tensions and technological change.” She pointed out that trade among Central Asian countries doubled between 2017 and 2025, and emphasized the importance of alternative transport corridors, stressing that developing roads and railways is insufficient without harmonizing customs systems, transit procedures, and digital connectivity.

Meanwhile, Robert Stehrer, Chief Economist at the World Trade Organization, clarified during the session that supply chain resilience means the ability to switch to alternative suppliers when supplies are disrupted. Stehrer noted that oil exports from the Middle East fell by about 24 percent in the first half of 2026, while global exports declined by approximately 6 percent, with part of the shortfall being offset by other producers.

Bangkok is hosting the annual meetings of the IMF and the World Bank Group from October 12 to 18, with a broad Kuwaiti and international participation comprising thousands of financial officials and economists to discuss global economic and financial challenges and ways to enhance monetary and investment cooperation. (End) E.A.B./A.M.S.