Global Push for Scaled Financing Gains Momentum: UN, Qatar Fund Call for Urgent Action in Post-Conflict Recovery

The event concluded with a unified call for governments, multilateral institutions, and development partners to scale up support for innovative financing mechanisms like the ReStart Fund.

A coalition of global development leaders has issued a strong call for a fundamental shift in how post-conflict recovery is financed, warning that without scalable, risk-tolerant funding solutions, fragile and crisis-affected regions risk prolonged instability and missed economic recovery opportunities.

At a high-level event held on the sidelines of the ECOSOC Forum on Financing for Development (FfD Forum), the Qatar Fund for Development (QFFD), the United Nations Capital Development Fund (UNCDF), and the United Nations Development Programme (UNDP) unveiled innovative financing models designed to mobilise capital at scale in some of the world's most challenging environments.

Held under the theme "From Commitments to Capital," the event brought together policymakers, financial institutions, and development partners to address a critical gap: the persistent shortage of investment in fragile, conflict, and crisis-affected settings — where the need is greatest, but capital flows remain limited.

Rethinking Global Finance for High-Risk Environments

Speakers underscored that traditional development finance structures are no longer sufficient to meet the scale and urgency of today's global crises. With official development assistance (ODA) under pressure and private investors wary of high-risk environments, new mechanisms are needed to bridge the gap between humanitarian aid and sustainable economic recovery.

"At the Qatar Fund for Development, we believe responding to today's realities requires rethinking how development finance is structured and delivered," said Fahad Al-Sulaiti, Director General of QFFD. "We must build a more inclusive and responsive financial architecture — one that works for fragile contexts, not despite them."

The call reflects growing recognition that fragile economies require tailored financial tools capable of absorbing risk, stabilising markets, and unlocking larger flows of private capital.

ReStart Fund Positioned as a Game-Changer

Central to the discussions was the UNDP–UNCDF ReStart Fund, a ready-to-deploy financing platform designed to accelerate recovery in post-crisis settings. The fund aims to bridge the critical transition phase between emergency humanitarian response and long-term development investment.

By combining catalytic financial instruments — such as guarantees and blended finance — with targeted technical assistance, the ReStart Fund seeks to:

• Stabilise financial systems in crisis-affected economies

• Sustain lending to small and medium-sized enterprises (SMEs)

• Rebuild local business capacity and confidence

• Attract larger pools of private and institutional capital

Development experts highlighted that early intervention is key. Acting before economic systems collapse helps preserve jobs, maintain livelihoods, and significantly reduce the long-term cost of recovery.

"Timing is critical," participants noted. "Without early, deliberate intervention, economies can suffer irreversible damage that takes years — or decades — to rebuild."

Palestine Initiative Demonstrates Real-World Impact

A flagship example presented at the event was the Joint Programme on Financing for Recovery and Resilience in the State of Palestine, implemented under the broader ReStart framework.

At its core is the Palestine Investment Facilitation Guarantee Facility, a financial instrument designed to stabilise the Palestinian financial system by reducing investment risk and maintaining access to credit in an environment of extreme uncertainty.

The initiative has already received a significant boost, with the Government of the Netherlands contributing USD 10 million in early-stage funding — a move widely praised as catalytic leadership.

Partners emphasized that such early contributions are crucial in unlocking additional financing and demonstrating confidence in high-risk markets.

Blending Policy, Finance, and Local Support

UNDP Associate Administrator Haoliang Xu stressed that successful recovery requires more than just funding — it demands an integrated approach combining policy reform, technical support, and financial innovation.

"In the aftermath of a crisis, countries must rebuild their economies and give local businesses a chance to recover," Xu said. "By aligning policies, practical support, and financing, we can strengthen the investability and credibility of local enterprises and create pathways for sustainable development."

UNCDF Executive Secretary Pradeep Kurukulasuriya echoed this sentiment, highlighting the structural challenges of attracting private capital to high-risk regions.

"Private finance at scale is not naturally designed to go where risk is highest — yet that is precisely where development impact is greatest," he said. "Our role is to absorb early-stage risk and enable larger financial institutions to step in at scale."

He added that UNCDF's focus on frontier markets — particularly Least Developed Countries, often rated below investment grade — is critical to ensuring that recovery efforts reach those most in need.

A Call to Turn Commitments into Action

The event concluded with a unified call for governments, multilateral institutions, and development partners to scale up support for innovative financing mechanisms like the ReStart Fund.

Participants stressed that global commitments must translate into real capital flows reaching vulnerable communities — not just pledges on paper.

As conflicts and crises continue to reshape global economic landscapes, the urgency to deploy effective, scalable financing solutions is becoming increasingly clear.

The message from the forum was unequivocal: without bold, coordinated action to mobilise capital in fragile settings, recovery will remain slow, uneven, and incomplete. But with the right tools and partnerships, there is a pathway to rebuilding economies, restoring livelihoods, and fostering long-term resilience.