WORLD’S FIRST BANK FOR FINANCING WATER
UNMATCHED BENEFITS FOR A COUNTRY HOSTING IT’S HEADQUARTER
The International Water Bank (IWB) is an ambitious and pioneering financial institution focused on addressing the global water crisis by funding water-related projects, technologies, and infrastructure. The IWB was founded by Rashad Al Shawa.
Who is Rashad Al Shawa?
- Former senior executive with 30+ years’ experience in banking and finance, and extensive experience working in high-level roles across international financial institutions
- Expertise in corporate banking, project financing, and investment banking, with a wide network of relationships in global finance
- Strong commitment to sustainability; with water scarcity becoming a critical global issue, Rashad saw an opportunity to create a financial institution that could provide much-needed capital for water projects worldwide
How was the IWB founded?
The Founder of IWB, Rashad Shawa, presented the idea of establishing a specialized global bank to finance water projects at the end of 2015 to the World Bank Group and the
International Finance Corporation (IFC), which adopted the idea to support the establishment of an international investment bank in the water sector. This was in addition to the welcoming and blessing of Mr. Shawa’s strategic vision at all international levels.
This was followed (in November 2016) by the establishment of the High-Level Water Panel headed by the United Nations and the World Bank, as a result of Mr. Shawa’s presentation of the initiative to establish the first bank in the world for water in an official letter issued by the World Bank to him in this regard. The panel was chaired by H.E. Dr. Danilo Turk, former President of Slovenia (who currently holds the position of Vice Chairman of the Board of
Directors of the International Water Bank), and included His Royal Highness Prince Hassan bin Talal of Jordan and other world personalities.
The creation of the High-Level Water Panel was unique from the standpoint that the World Bank only engages with government institutions, and does not typically engage directly with individual private sector entrepreneurs or financial institutions unless they have significant
global impact potential. However, the scarcity of the water issue globally, the unique and
critical mission of the IWB, and the potential for global collaboration, led to the engagement of the World Bank with IWB.
What is the IWB vision?
At present, many types of banks exist globally: commercial banks, investment banks,
industrial banks, and development banks, to name a few. These banks exist across the world, whether in Europe, Africa, Asia, or North America. However, when it comes to financing the water sector, this represents only a small percentage of their general activity and investment focus, in addition to the fact that most banks lack the technical and operational expertise to operate properly within the water sector.
Herein lies the distinction of IWB: a specialized bank dedicated entirely to the water sector.
IWB seeks to be the reference address for the water sector globally, and work across all
stages from project identification all the way to the commercial close and financial close of a transaction. The strategic vision is for IWB is to be a leading and specialized bank in helping achieve and support water security, as well as finance food security projects and provide water and the necessary infrastructure to achieve food security, as they constitute – water and food security – the pillars of national security for any country in the world.
The IWB seeks to embody the spirit of innovation, collaboration, and sustainability. Water is the oil of the 21st Century. Recognizing this, the IWB’s core mission will be to facilitate the equitable and efficient distribution of water resources, foster international cooperation in water conservation, enable knowledge exchange and capacity building among nations, and
finance sustainable water solutions and technologies. This includes areas such as water transportation and infrastructure, wastewater treatment, dams, and desalination, both regionally and globally.
Why water?
- Scarce asset: water is not only essential for life but also for economic growth, food security, water security, and national security
- Growing demand: the world faces a significant water shortage, with demand likely to outstrip supply in many areas in the coming decades
- Investment opportunity: historically, water has been overlooked as an investment
class, but with growing awareness of its scarcity and the development of technologies for its conservation and management, investors are starting to see water-related
projects as a promising area for long-term returns
What is the investment opportunity and its strategic benefits?
For potential investors or individuals considering becoming shareholders in IWB, the bank presents an opportunity to get involved in an emerging market centered around the global water crisis. IWB plans to raise capital to fund water projects and technologies worldwide. The long-term vision is to build a global portfolio of water-related investments, potentially making water a new asset class for institutional investors and other financial players.
Why should a country host the International Water Bank?
Hosting the International Water Bank would provide a nation with numerous strategic, economic, and political advantages, as the role of water in addressing global challenges is only expected to grow in importance. Some of these advantages include, but are not limited to:
- Stewardship over the world’s most important resource: water security is the fundamental building block of food security and national security
- Global leadership in the water sector: The establishment of the IWB will further enhance the host country’s reputation as a global pioneer and powerhouse, and emphasize its commitment to sustainable development and to solving a global issue that transcends national borders
- Center of Excellence for water finance: The IWB will position the host country as the global hub for water finance and solutions, drawing on the nation’s strategic location, financial expertise, and commitment to innovation
- Attraction of global investments: The announcement of the IWB is expected to attract significant capital investments from leading global financial institutions, which will in turn lead to strong economic growth and job creation, and position the host country as a regional and global trade hub for water related industries
- Political influence: a host country can solidify its position as key player in global discussions around sustainable development and climate change, and increased diplomatic influence will lead to stronger alliances with other countries, global organizations, and financial institutions in order to shape international water policies and regulation
- Water security partnerships: a host country would likely be at the center of global water security partnerships, giving it strategic partnerships with governments, private sector players, and international bodies to help solve water challenges while sharing knowledge and best practices
Conclusion:
The creation of IWB represents a bold step in the financial world to address one of the most pressing global challenges-water scarcity. The International Water Bank is positioning itself to capitalize on the growing demand for water infrastructure investments, potentially offering attractive financial returns while having a positive impact on the world.
There is an urgent need to address the global water crisis, which is being exacerbated by growing populations, climate change, and insufficient infrastructure. IWB’s core mission is to finance water infrastructure projects and technologies that can ensure access to clean, safe, and sustainable water sources worldwide. Through strategic investments, the bank aims to
solve water scarcity issues, particularly in underdeveloped regions, while fostering sustainable economic growth and environmental responsibility.