As we arrive at the mid-point in the year we are sharing this update on our work to promote and enhance the global Islamic and ethical finance industries.

The Islamic Finance Council UK (UKIFC) has been at the forefront of pioneering initiatives, fostering collaborations, and influencing policy to create a more inclusive and sustainable financial ecosystem.

Our efforts span a diverse range of activities, including educational programs, thought leadership, and strategic partnerships, all aimed at integrating ethical principles into mainstream finance. Through our ongoing advocacy and capacity-building endeavours, we strive to bridge the gap between conventional and Islamic finance, ensuring that financial practices adhere to both ethical standards and faith-inspired principles. We are committed to driving innovation and best practices, thereby contributing to a resilient and responsible global financial system.

Islamic Sustainable Finance – Ecosystem Development

• We signed a Memorandum of Cooperation with MIFC on 28 May 2024 in Kuala Lumpur at the Global Forum on Islamic Economics and Finance, under the auspices of the Prime Minister of Malaysia to further the development of the global Islamic finance sector with a focus on sustainability (see picture above).
• Guidance on Green, Social, and Sustainability Sukuk: As Secretariat of the High-Level Working Group on Green Sukuk together with the London Stock Exchange Group, Islamic Development Bank and International Capital Market Association (ICMA), we successfully published guidance for issuers and market participants with practical information on how sukuk may be labelled as green, social or sustainability under the ICMA Green Bond Principles.
• Introduction of the Islamic Sustainable Investing Platform (ISIP): Following our COP28 announcement the ISIP was formally released in Dubai, Istanbul and Kuala Lumpur in May. The ISIP is a listing of independently assessed, validated, and showcased Islamic investment products that are directly aligned to sustainability goals.

UK Market Development

• Alternative Student Finance (ASF): We were commissioned by the UK Government’s Department for Education (DfE) to work together with the Student Loans Company (SLC) to support a discovery process to identify the implementation requirements for ASF. Progress has been made with DfE following positive engagement with Under Secretary of State at the Department for Education, Baroness Barran. The process to operationalise the requirements to successfully deliver ASF we estimate could easily take 18 to 24 months with the timeframe being directly impacted by the introduction of Lifelong Learning Entitlement (LLE) which introduces a major change to student loans in general.

• All-Party Parliamentary Group on Islamic and Ethical Finance Call for Evidence: As Secretariat we led a call for evidence looking at “Financial Inclusion of Muslims in the UK”. Thank you to all those who supported the call. The summary of responses which provides an insight into the challenges and barriers faced by Muslim communities in accessing financial services in the UK are available here. With the pending General Election all APPGs are currently dissolved. We look forward to the APPGIEF being reconstituted following the election results.

Thought Leadership

• Unlocking Islamic Finance for Climate Insight Series: This insights series was launched to unpack the role Islamic finance can play in financing the transition to net zero.

• Green and Sustainable Sukuk Update 2023: Together with the LSEG/Refinitiv team this report was launched highlighting the growth in the market of green and sustainable sukuk

• Post COP28 reflections: Our post COP28 reflections blog post published by FaithInvest highlights the immense opportunity for Islamic finance to support the transition towards a cleaner energy future and enable investment consistent with both climate goals and faith-based values.

 Convening and Connecting

• Unlocking Islamic Sustainable Finance Round Table (London): Last month we held an exclusive round table that formed part of the London Climate Action Week programme. The event brought together industry experts to discuss the latest trends and opportunities in sustainable finance within the Islamic finance context.
• Unlocking Islamic Sustainable Finance Round Table (Dubai): In May we held an exclusive round table in Dubai (as pictured above), which brought key stakeholders together to discuss how we can build an enabling environment in the UAE for Islamic sustainable finance.
• Earlier this month we partnered with FaithInvest and over 300 faith leaders at the global Focolare Movement gathering in Rome. With Islamic finance being uniquely the only form of recognised globally regulated faith-based finance, participants were particularly keen to understand what lessons they could take to help align their faith values with their financial transactions.
• Unlocking Islamic Finance Summit at COP28: The UKIFC’s “Unlocking Islamic Finance at COP28”, which formed part of the Path to COP28 campaign (the first, and largest finance-focused campaign for the Dubai Climate Summit), was hosted in partnership with DIFC and was the main (and largest!) event focused on Islamic finance attracting over 200 leaders and practitioners.
• During May we spoke at a number of international events including the GFIEF Summit and World Bank roundtable in Kuala Lumpur, EYDK Summit in Istanbul, and the Focolare Summit in Rome.

Upcoming Events

• Durham Islamic Finance Summer School (DIFSS) 2024: 29 July – 2 August 2024: We are delighted to be joining this year’s DIFSS. Running since 2006, it has established itself as the leading training and leadership programme in Islamic finance. For a 15% discount register through the UKIFC by contacting oyin@ukifc.com
• Unlocking Islamic Sustainable Finance Global Summit: To be hosted in the UAE in Nov/Dec 2024. Please get in touch if you are interested in partnering with us for the event.

We are excited about the rest of the year and the impactful initiatives and events we have planned. Thank you for your continued support and engagement with the Islamic Finance Council UK. Together, we can drive positive change and promote a more sustainable and ethical financial future.