However, it is now increasingly recognised that there are significant complementarities between our two dynamic regions. These complementarities provide a platform for two-way flows that enhances income and wealth creation. The different demand patterns of each respective region reinforces the significance of the complementarities. The Middle East investors have a greater need for diversification, both in terms of geographical allocation and asset classes, beyond the traditional investments in the US and Europe. Asia in turn, the home to some of the fastest growing economies in the world, offers highly diverse investment opportunities, ranging from in Vietnam to Japan, and in a broad scope of industries, ranging from natural resource producers to established high-tech brands. Such investment opportunities continue to support the growth momentum in the region. At the same time, Middle East domestic infrastructure requirements are estimated to total USD500 billion for the next five years, and Asian companies have demonstrated the capacity to provide the technology, expertise and human capital to meet these infrastructure demands. Asia's relentless march towards development offers new opportunities for the Middle East. Asia's continued need for productive capital and uninterrupted energy supply to sustain its high growth matches the Middle East's resource endowments. It is estimated that Asia needs USD 1 trillion worth of infrastructure investment over the next five years, and is in search of new partnerships and strategic investors to co-invest in these undertakings. In focussing on the respective comparative advantages and connecting via the New Silk Road, it contributes to expanding the opportunities in both the regions.

The orientation of Islamic finance towards real underlying assets is aligned to the nature of the investment opportunities in both regions. Infrastructure and project finance in both regions are particularly suited for Islamic finance. The emphasis in Islamic finance on risk-sharing and the equity-oriented nature of such financing also suits the requirements. The Islamic financial structures clearly distinguish the roles and responsibilities as well as risk and profit-sharing profiles of the parties involved. This clear delineation of the roles also promotes greater transparency and the appropriate governance. The nature of the structures also enables the risks to be transferred to those more able to contribute towards value creation. In addition, the use of Islamic finance promotes stability in the financial markets and the financing flows, which is important for emerging market economies such as those in Asia and the Middle East. In Islamic finance, strategies to minimize and manage the risks involve integrating with the risk in the real activities. The real activities therefore needs to generate sufficient wealth to compensate for such risks. In contrast, conventional instruments generally separate the risks from the underlying assets. As a result, risk management and wealth creation may at times move in different or even opposite directions. Conventional financial instruments also allow for the commoditisation of risks, leading to its proliferation through multiple layers of leveraging and disproportionate distribution. These could result in higher systemic risks, increasing the potential for instability and inequitable concentration of wealth.