Innovative Financing to Address the Education Crisis in Islamic Countries

Islamic Development Bank Chairman of the Board of Directors Mohammed al-Jasser. (IsDB)
Islamic Development Bank Chairman of the Board of Directors Mohammed al-Jasser. (IsDB)
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Innovative Financing to Address the Education Crisis in Islamic Countries

Islamic Development Bank Chairman of the Board of Directors Mohammed al-Jasser. (IsDB)
Islamic Development Bank Chairman of the Board of Directors Mohammed al-Jasser. (IsDB)

The 57 member states of the Islamic Development Bank (IsDB) are seeking to preserve the rich Islamic heritage and rely on modern technologies to build a bright future to consolidate their position in education and culture.

The countries are boosting investments in education based on their awareness of the importance of a workforce equipped with relevant skills and education in achieving economic diversification and promoting peace and prosperity within their societies.

Saudi Vision 2030 includes a program dedicated to developing human capital, which focuses on building basic and advanced skills to prepare the young generation and better prepare them for future jobs.

IsDB Chairman of the Board of Directors Mohammed al-Jasser said the Arab Gulf countries are aware of the pivotal role of education and are taking advantage of their financial strength to participate with low-income countries and members of the Bank to increase investment in education.

This helps low-income countries to accelerate development rates and deal better with crises, he remarked.

Jasser added that the need for partnership emerges as low-income member states are facing a severe educational crisis that has been exacerbated by the Covid-19 pandemic.

He noted that before the pandemic, 50 percent of the world's 10-year-olds lacked basic reading skills, while it is estimated that the figure has increased to 70 percent.

The gap between the skills children need to succeed and the skills they develop can widen, cautioned Jasser, warning that it could have dire consequences for global economic growth, human capital development, and political and social stability.

The Chairman predicted that current generations would lose $17 trillion of the financial gains they will achieve for life due to the interruption of the educational process during the pandemic and the economic crises.

Given the high-interest rates and public debt burdens, low-income countries need new financing options for the education sector. Otherwise, they will have to risk reducing education budgets, he said.

Jasser pointed out that the Arab Gulf countries can cooperate with the IsDB and the Global Partnership for Education (GPE) and rely on their innovative capabilities and financial resources to enhance investment in the education sector of low-income countries.

They are also considering merging public and private financing for education when necessary.

The IsDB supports the development of learning outcomes, skills, and educational training, particularly for women and youth in rural areas.

Furthermore, Jasser hoped to see more distinguished partnerships, such as those between the Arab Coordination Group (ACG) and the Global Partnership for Education, to ensure that any country seeking to increase investment in the education sector will have the amount and type of financing it needs.

Education has contributed to the development of societies and the establishment of prosperity and the values of giving in the Arab Gulf countries, which allowed them to support the educational process under challenging times, he said.

Jasser aspires to see other members of the IsDB Group follow the steps of the Arab Gulf countries in increasing investment in the education sector, providing children in all countries with the necessary skills to meet the changing requirements in the future.

The Bank seeks to bring together various international donors, institutions, companies, and agencies to focus their expertise and financial strength on meeting the educational needs of low-income countries.

In 2022, 107 million students benefited from the grants provided by the Bank, which led to the training of 675,000 teachers.

CEO of GPE Laura Frigenti said innovative methodologies, such as the Global Partnership for Education's Multiplier, secured an additional $1 billion in funding from development agencies and charities in 2022, boosting financing for the education sector.

Donor countries and institutions in the Arab Gulf region can join the IsDB and the GPE to strengthen levels of blended financing, allowing low-income countries to develop their education systems fully.

Frigenti said Saudi Arabia and Kuwait had shown their willingness to participate more actively as new donor countries to the GPE, which leads to laying a solid foundation for cooperation and investment in the future.

The Islamic Development Bank is a member of the Arab Coordination Group, which provides $400 million in financial investments alongside $100 million from the GPE Multiplier. It is an innovative financing tool that attracts investments from other donors.

Funds under the initiative are accessible to 37 countries that are members of the Organization of the Islamic Cooperation and are home to nearly 28 million out-of-school children.

Cameroon, the Kyrgyz Republic, and Uzbekistan received the first allocation of $280 million in innovative financing for education.



Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
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Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.


IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.