Alternative ways of financing projects in the Middle East should be considered, given the reduced availability of bank debt facilities, said Sheikh Ahmed bin Mohammed al-Khalifa, Bahrain’s finance minister.

Speaking at MEED’s Project & Infrastructure Finance conference in Bahrain, the minister said banks remain short on liquidity and are “grappling with tighter regulatory framework”. Banks are less likely to want to lend beyond seven years.

“Banks and investors want higher margins and shorter financing periods,” he said.

To support the strong pipeline of infrastructure projects planned in the Middle East, the minister said new types of financing should be explored.

“If financing is not as freely available then we as a government need to consider alternatives such as sukuk… look to other entities such as insurance companies and sovereign wealth funds,” he said.

He added that ensuring access to project finance in the region is “more important than ever before… not just for economic development, but for social development, as well”.