The Final Countdown

The saying “Rome wasn’t built in a day” is often used to emphasize the idea that great things cannot be achieved overnight. It took the mighty Roman Empire more than seven years to raise the Colosseum. This is considerably less than what humankind has left to deliver the 2030 Sustainable Development Goals (SDGs), for which little more than five years remain. 

Time is one big concern. Funding is the other. In his opening speech at the latest OPEC Fund Development Forum in Vienna in late June President Abdulhamid Alkhalifa said: “We need an estimated US$3.9 trillion per year to achieve the SDGs.” Consequently, he announced a significant increase in OPEC Fund spending in the coming years. 

Although other development partners have similar ambitions, it is an accepted fact that sovereign spending alone will not be sufficient to close the funding gap. That is why in this issue of the OPEC Fund Quarterly we examine what more the private sector could do to support sustainable development and strengthen economic resilience – in terms of financing and beyond. 

The funds, at least, are available. According to the World Economic Forum, the private sector currently manages an estimated US$210 trillion in assets. Mobilizing a mere 2 percent of this treasure would bridge the SDG gap. The big question however is how to make it happen. OPEC Fund Senior Economist Angus Downie examines different ways to engage the dynamic powers of the private sector in the pursuit of development. He concludes: “By aligning their business interests with broader development goals, private companies can act as engines of economic development and make significant contributions.” 

Turning (this) theory into practice is what the OPEC Fund has been doing in its dedicated Private Sector Department, which marked its 25th anniversary this June. Our issue looks back at what has been achieved in the first quarter-century, profiles selected showcase projects and ventures to look into the proverbial crystal ball. A celebratory event with partners in June gave cause for confidence: “Winning is always a team effort,” said Tareq Alnassar, Vice President, Private Sector. 

Then it is all the better to know how others do it. Our magazine offers a series of fascinating interviews with development partner institutions and clients. Guido Bichisao, Senior Advisor at the European Investment Bank (EIB), takes us on a deep dive into how data management is transforming financial institutions: “Innovation can be a game changer,” he says. The Asian Development Bank’s (ADB) Portfolio Management Director Marife Apilado says about development finance institutions: “I think we’re well-placed to influence policy frameworks toward sustainable and resilient solutions.” 

When it comes to adapting to new challenges, the European Bank for Reconstruction and Development (EBRD) has often been a frontrunner. Founded in 1991 to support the transition to a private sector-based economy after the fall of communism in Europe, the bank has in recent years reinvented itself as a trailblazer of the green transition. Hande Işlak, Director of Corporate Debt Portfolio, told us: “Our role is to catalyze systemic change so that climate investments become economically viable.” Admassu Tadesse, Group President and Managing Director of the Eastern and Southern African Trade and Development Bank (TDB) warns against suffocating growth: “The regulatory environment has become very strict and onerous in many ways.” 

In addition to offering food for thought, the new issue of the OPEC Fund Quarterly also celebrates a series of successful events such as the Development Forum, the new Climate Solutions Week, high-level missions and more. They illustrate the institution’s growing influence as a convener, attracting governments, development partners, business leaders and civil society organizations with the goal of mobilizing investment, inspiring dialogue and providing thought leadership. This magazine is written with the ambition to make a small, but valuable contribution to this goal. 

We wish you a satisfying read.