The paper consists of three parts. The first part discusses economic policies underlying primary recycling, secondary recycling and the concept leading to positive recycling. Pleads for a basic structural adjustment in the world’s financial mechanism to create additional capacity for real investment rather than ﬁnancial investment in -the existing framework. The second part discusses the internationalisation of petro-capital through Arab and Islamic banks. These institutions have a large amount of funds available. The Islamic banks apply Islamic criteria to the end-use of these funds. They all have a bias toward the transfer of these funds to the Third World. The third part discusses strategy issues for business-oriented cooperation by Islamic banks. Equity-participation by Islamic banks is innovative and creative and indicative of a potential success in development effort. But Islamic banks would require the expertise of OECD conntries for the assessment of projects. Raises some questions such as: What will be the advantages for all parties (OECD, QPEC, Third World) from Islamic banks? Is the participation scheme of Islamic banks more desirable than loan-financed schemes? Where do Islamic banks fit into the existing banking system? What styles of cooperation do Islamic banks envisage with other ﬁnancial institutions? What arethe economic priority sectors? How does Islamic participation fit into other new forms of venture finance in the Third World? What incentives and mechanism would Islamic banks expect from OECD countries to work jointly in the Third World? Concludes that imagination, foresight and courage would be required for trilateral cooperation. For economists and bankers. Documented.