Kuala Lumpur, Malaysia, 12 September 2025 – The Islamic Development Bank (IsDB) convened a key meeting at its Center of Excellence in Kuala Lumpur (KLCoE) to explore the development of innovative Islamic finance solutions for addressing pressing water sector challenges in its member countries.

The meeting brought together Mr. Bakhodir Mirzaev, Senior Global Water & Sanitation Specialist, ESID, IsDB, with experts from the ISRA Institute, INCEIF University, including Dr. Nurhuda Othman, Dr. Marjan Muhammad, and Assoc. Prof. Dr. Ziyaad Mahomed. The KLCoE team, led by Mr. Syed Faiq Najeeb and Mr. Ali Sen, participated actively in the discussions, and was later joined by Mr. Samer Elesawi, Head of KLCoE, who actively engaged in the discussions.

The session built on the momentum of the 12^th Roundtable on Financing Water held in Jeddah on 16–17 April 2025, positioning the proposed initiative as a structured follow-up to strengthen linkages between water sector development and Islamic finance. The collaboration aims to design innovative instruments and solutions that can help address the funding gaps faced by IsDB member countries.

A key highlight of the meeting was the technical presentation by Dr. Ziyaad Mahomed, who outlined the proposed framework under development. The draft design includes a blend of Islamic instruments such as Sukuk, Waqf, and Zakat, structured to address sectoral needs like: (i) Non-revenue water (NRW) reduction, (ii) Rural water supply and access to sanitation facilities (WASH), (iii) Desalination, and (iv) Climate-resilient water infrastructure financing.

The session also emphasized the strategic intent to institutionalize a Shariah-based water financing framework aligned with SDG 6 (Clean Water & Sanitation) and IsDB’s Strategic Framework 2026–2030.

IsDB team emphasized that the initiative could provide “a competitive set of financial structures to address critical water sector needs” and serve as a platform for strengthened collaboration between ESID, KLCoE, and ISRA/INCEIF.

The discussions also coincided with Mr. Bakhodir’s participation in the 4^th World Irrigation Forum in Kuala Lumpur, further underlining the significance of advancing sustainable water solutions.