World Investment Forum Discusses Ways to Strengthen Private Sector Role in Development Financing
Doha, October 26 (QNA) - A panel discussion titled "The Role of the Private Sector in Financing Development in Developing Countries" held Monday as part of the World Investment Forum 2026, currently taking place in Doha, examined ways to strengthen the private sector's role in financing development.
The session addressed financing gaps that continue to pose a major obstacle to development, as public resources alone are insufficient to meet growing investment needs. Participants explored how the private sector, with support from development finance institutions, could help turn these gaps into investment opportunities.
Drawing on Qatar's experience, speakers discussed ways to foster cooperation between public and private financing, instruments to mitigate investment risks in emerging markets, and the conditions needed to mobilize greater private sector participation. The session brought together perspectives from governments, development finance institutions, the private sector, and international organizations, with the aim of identifying practical pathways to advance sustainable development.
During the discussion, HE Egypt's Minister of Investment and Foreign Trade, Dr. Mohamed Farid Saleh, emphasized that clear and stable monetary and fiscal policies are fundamental to building and strengthening investor confidence. He added that attracting capital requires a high degree of predictability and absolute clarity regarding a country's monetary and fiscal policy direction.
His Excellency explained that restoring investor confidence requires updating investment and trade policies, streamlining bureaucratic procedures, and facilitating the approval process. He also stressed the importance of leveraging free trade agreements to ensure that investments serve not only the domestic market but also enable products to reach broader regional and international markets.
HE Dr. Saleh underscored the need to identify priority sectors and develop local expertise to determine the specific segments of value chains targeted for investment. He highlighted the importance of specialized knowledge in key development areas, including renewable energy projects and water desalination plants.
He also emphasized the role of developing domestic capital markets in mobilizing public investment through sophisticated financial instruments such as sukuk. Without well-developed domestic financial markets that complement risk-mitigation mechanisms and government guarantees, he said, it would be difficult to complement financing provided by international development finance institutions or transform major development projects, such as solar energy technologies, into bankable and economically viable ventures.
For his part, HE Somalia's Minister of State at the Ministry of Foreign Affairs and International Cooperation, Ali Mohammed Omar, said least developed countries and those emerging from conflict face structural challenges and elevated risks that make investors hesitant, owing to weak institutions and infrastructure and uncertainty over their financial outlook.
He explained that economic diplomacy plays a crucial role in removing and reducing these barriers and building partnerships to attract capital by addressing investors' need for clear regulatory frameworks and lower risks. He also highlighted the importance of strengthening investment legislation, enforcing contracts, establishing secure special economic zones away from conflict areas, and providing essential infrastructure, including ports and airports, to facilitate the transportation and export of goods.
Omar outlined the reforms Somalia has undertaken to overcome these challenges, foremost among them the reduction and clearance of accumulated debt resulting from prolonged periods of conflict, thereby opening up opportunities to secure new loans for investment in public projects. He also pointed to the adoption of an investor-friendly investment law, the development of a national transformation plan identifying the country's priorities, and the designation of special economic zones to reduce the cost of establishing businesses.
He identified agriculture, fisheries, livestock, and energy as priority sectors for investment in Somalia, emphasizing the inseparable link between security and development.
Meanwhile, HE Secretary-General of the Secretariat of the African Continental Free Trade Area (AfCFTA), Wamkele Mene, stressed that global investment flows have become increasingly concentrated in specific regions as a result of current geoeconomic and geopolitical conditions, whereas investment decisions had previously been driven more directly by returns on capital.
To address this situation, he underscored the importance of integrating Africa's regional market, which encompasses 1.4 billion people and has a combined gross domestic product of USD 3.4 trillion, to make the continent a more attractive investment destination. He explained that the AfCFTA Investment Protocol seeks to harmonize regulatory principles and create a positive investment climate that complements countries' national policies.
Mene also highlighted the growth of African private sector investment within the continent, despite constraints on capital flows from the Global North. He said African businesses had demonstrated their ability to contribute actively and practically to development while assuming investment risks. As an example, he cited a USD 16 billion oil refinery project in Kenya, which is financed overwhelmingly by African capital.
He further emphasized the critical role of African development finance institutions in mitigating risks and stimulating private capital. By leveraging their combined balance sheets, he explained, these institutions can enable commercial banks to expand their risk-taking capacity and increase investment across sectors and markets, rather than relying passively on external financing.
Qatar Development Bank CEO Abdulrahman Hisham Al Suwaidi said the discussion focused on closing the financing gap, although capital is available.
Global foreign direct investment grew by 6 percent annually to reach USD 1.6 trillion in 2025, but only 2.7 percent went to least developed countries, highlighting uneven capital flows.
He said the priority should be turning development needs into bankable investment opportunities through predictable policies and regulations, deeper capital markets and more credit ratings, enabling investors to assess risks confidently and channel private capital into recipient countries.
Development finance institutions, including Qatar Development Bank, should not compete with private capital but expand the market through guarantees, blended finance, co-investment structures and export credit guarantees. Their success should be measured by the private capital mobilized through strategic intervention.
Al Suwaidi said the bank supports Qatar's private sector through domestic lending guarantees, international expansion initiatives and export credit products, including buyer credit programs that finance development opportunities in recipient countries while involving the private sector wherever possible.
Deutsche Bank Qatar CEO and Head of MENA Salah Mohammed Al Jaidah said economies need diverse layers of businesses. While major entrepreneurs, contractors and corporations have driven economic growth, more support is needed for small and medium-sized enterprises (SMEs).
He proposed requiring major contractors to allocate 10–15 percent of their work to SMEs, giving them opportunities to participate in major economic projects.
Financial institutions should also commit to financing these businesses, whose role is vital to industrial and manufacturing success.
Citing BMW's network of 12,000 suppliers across around 50 countries, Al Jaidah stressed that large companies thrive when SMEs have the support and opportunities to grow.
This is particularly important in emerging markets, where multinational corporations can dominate smaller businesses, he said, drawing on his more than 35 years of banking experience. (QNA)