IDEAS home Printed from https://ideas.repec.org/h/pal/psibcp/978-3-030-67094-8_2.html
   My bibliography  Save this book chapter

Islamic Versus Conventional Infrastructure Project Finance vis-à-vis Time-Overrun Issues

In: Sustainable Development and Infrastructure

Author

Listed:
  • Amadou Thierno Diallo

    (Islamic Development Bank)

  • Ahmet Suayb Gundogdu

    (Islamic Development Bank)

Abstract

How different is Islamic project finance? Islamic finance checks and balances shape the way infrastructure is developed. In evaluating three MDBs (IsDB, ADB, and WB), even under conditions featuring the same project cycle, procurement guidelines, and collateral, the merits of Islamic finance emerge from disbursement procedures and manifest in the legal context. Islamic finance ensures fairness by correcting the imbalance found in conventional finance contracts, which favor lenders. Nevertheless, the same merit emanating from legal-financing agreements is also the root cause of time-overrun problems. Besides, Islamic Istisna contracts for infrastructure development make banks responsible for assets produced after project completion, and hence encourage observance of strong environmental and social safeguard measures. This feature of Istisna alone shows the embedded responsible financing feature in Islamic finance.

Suggested Citation

  • Amadou Thierno Diallo & Ahmet Suayb Gundogdu, 2021. "Islamic Versus Conventional Infrastructure Project Finance vis-à-vis Time-Overrun Issues," Palgrave Studies in Islamic Banking, Finance and Economics, in: Sustainable Development and Infrastructure, chapter 2, pages 21-35, Palgrave Macmillan.
    • Handle: RePEc:pal:psibcp:978-3-030-67094-8_2
    DOI: 10.1007/978-3-030-67094-8_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:psibcp:978-3-030-67094-8_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.