UKIFC to host Global Islamic Finance and the SDGs Series 2022
Global Islamic Finance and the SDGs Series (19, 20, 21 September)
UKIFC in partnership with United Nations, GEFI, Refinitiv and IsDB is organising a virtual global summit on Islamic finance and the SDGs, to coincide with the UN General Assembly 2022 and taking place on 19, 20 and 21 September. Click here to sign up now, or click here to find out more.
The SDGs and Islamic finance: 5 publications to read
By Mohammad Hashimi
The sustainable development goals (SDGs) represent the global development agenda and need mobilization of capital from a variety of sources including Islamic finance. Here are five publications in on Islamic finance and SDG that those interested in the topic should read.
1. Innovation in Islamic Finance: Green Sukuk for SDGs
Innovation in Islamic Finance: Green Sukuk for SDGs, The Islamic Finance Council UK, 40 pages, 2021
The report, commissioned by UNDP Indonesia, explores the role of green sukuk in the context of climate change and the green economy. Indonesia has issued the world's first sovereign green sukuk in 2018 and the world’s first retail green sukuk in 2019. The report highlights the opportunity for Islamic finance industry to play a major role in achieving the UN SDG. The report suggests green sukuk could bridge the gap of funding towards sustainability and provides several recommendations for the development of the green sukuk market.
It finds that “green sukuk are a relatively new development with limited issuances but have a clear alignment with the value system of Islamic law. As Islamic finance evolves, innovative products such as green sukuk represent the potential for a new class of products that consider more than legal permissibility, moving towards a positive impact in line with SDGs.”
2. How Islamic Finance Contributes to Achieving the Sustainable Development Goals
How Islamic Finance Contributes to Achieving the Sustainable Development Goals, OECD Development Co-operation Directorate, 44 pages, 2020
In this report, the authors argue that in Muslim-majority contexts, Islamic finance could be socially, culturally and ethically more acceptable than conventional finance and better suit development. The report discusses Islamic social finance instruments and opportunities that can be used for achieving UN SDGs.
The report “identifies the opportunities that Islamic finance presents for donors, as they look to deliver the Sustainable Development Goals (SDGs). To achieve the SDGs by 2030, Arab and OECD DAC donors need to mobilize innovative forms of financing and deliver the UN Secretary-General’s call to deepen the transformation of development finance systems.”
3. Reforming Islamic Finance for Achieving Sustainable Development Goals
Reforming Islamic Finance for Achieving Sustainable Development Goals, Tariqullah Khan, 19 pages, 2019
The author explains the possibilities of Islamic finance contributing towards SDGs in the light of objectives of Shariah. The paper examines that a change in the perspective current system will be helpful in achieving SDGs.
The paper suggests that Maqasid should be given more importance, and argues that “The paradigm of Islamic economics and finance is guided by the motivation of comprehensive human development (CHD) and its preservation as manifested in the objectives of Sharīʿah (maqāṣid al-Sharīʿah)”
4. Role of Islamic Finance in Sustainable Development Goals
Role of Islamic Finance in Sustainable Development Goals, Abdul Ghafar Ismail, Salman Ahmed Shaikh, 16 pages, 2017
The paper explains the potential of achieving UN SDGs in light of the philosophical foundations of Islamic finance. The authors focus on environmental and climate changes caused by human beings. The paper suggests Islamic social finance instruments like zakat (obligatory alms) and waqf (charitable endowment) can contribute towards scaling up efforts in commercially non-viable but socially vital projects and programs.
They find that “there is much potential for Islamic finance to promote sustainable economic development through such approaches as widening access to finance, financing infrastructure projects, and expanding the reach of Takaful. Real sector based productive enterprise in Islamic finance has positive implications for the ecosystem.”
5. Sustainable Development Goals and Role of Islamic Finance
Sustainable Development Goals and Role of Islamic Finance, Habib Ahmed, Mahmoud Mohieldin, Jos Verbeek, Farida Aboulmagd, 47 page, 2015
According to the authors, basic principles of Islamic finance stabilize the economic system and give importance to social responsibility. The working paper explains how social financing tools like Zakath and Waqf help to achieve SDGs by enhancing stability and resilience to the financial sector, financial inclusion, reducing vulnerability of the poor, contributing to environmental and social issues, and infrastructure development.
They argue that “practical measures are required to enhance the contribution of the Islamic financial sector to achieve the SDGs. We have identified five tracks through which Islamic Finance could support efforts to achieve the SDGs: financial stability, financial inclusion, reducing vulnerability, social and environmental activities, and infrastructure finance.”
Concluding thoughts
Together, these reports and papers display the harmony between Islamic economic thought, Islamic finance, and the SDGs. However, they also show that the majority of the work to practically utilize Islamic finance for achieving the SDGs remains to be done.
Global Islamic Finance and SDGs Summit Launched
The UKIFC in partnership with UN and Islamic Development Bank is organising a virtual global summit on Islamic finance and the SDGs, to coincide with the UN General Assembly.
The summit will:
- Highlight the natural alignment between Islamic finance and the SDGs, based on the Maqasid Al-Shariah (higher goals of Islam);
- Examine some of the challenges for Islamic finance and the SDGs;
- Showcase the practical progress made by Islamic financial institutions on the SDGs, including multilateral organisations, governments, and commercial banks and asset managers; and
- Showcase the role for Islamic social finance in achieving the SDGs.
By focusing on the natural alignment between the Islamic faith and the SDGs, we will seek to drive engagement with and acceptance of the Goals among communities who might otherwise not engage with them. The summit will feature a mixture of high-level discussions about the global trends facing the Islamic finance industry, scholarly debate regarding the Goals, and practical showcases of SDGs in action in Islamic finance.
The Global Islamic Finance and SDGs Taskforce, initiated by the UKIFC, was launched by the UK Government together with IsDB to promote awareness and adoption of the SDGs amongst commercial Islamic financial institutions. This summit is informed by, and builds on, the work of the Taskforce and the UKIFC’s broader activities in promoting the SDGs and its work with GEFI as part of the Faith in Finance Path to COP workstream.
Confirmed Speakers Include:
- Dr Ahmed Al-Meraikhi, Special Adviser to the UN Secretary General
- Tan Sri Azman Mokhtar, Board Member, International Centre for Education in Islamic Finance
- Raja Amir Shah Raja Azwa, CEO, HSBC Amanah Malaysia Berhad
- Stella Cox CBE, Managing Director, DDCAP Group
- Rafe Haneef, CEO - Group Transaction Banking & Group Chief Sustainability Officer, CIMB Group
- Charles Haresnape, CEO, Gatehouse Bank
- Farmida Bi CBE, EMEA Chair, Norton Rose Fulbright
- Dr Akram Laldin, Executive Director, International Shariʽah Research Academy for Islamic Finance
- Arshad Mohamed Ismail, CEO, Bank Pembangunan Malaysia Berhad
- Najmuddin Mohd Lutfi, CEO, BIMB Investment Management Berhad
- Hajara Adeola, CEO, Lotus Capital Limited
- Omar Shaikh, Managing Director, UKIFC
To register your interest for the summit, follow the link to our sign up page.
Ethical Finance 2019
Ethical Finance 2019 (EF2019) is organised by the Global Ethical Finance Initiative (GEFI) which oversees, organises and coordinates a series of activities to promote finance for positive change. GEFI annually hosts in Edinburgh the premier platform that convenes the world’s foremost business, political, civic and social leaders of society to network, share, co-develop and shape a fairer, more sustainable financial system.
With the Bank of England recognising climate change as a core financial risk, the proliferation of the UN SDGs and the ongoing dichotomy for asset managers wrestling with the social impact versus economic return conundrum; the financial system is undergoing material transformational challenge.
Together with UNDP and Scottish Government, Ethical Finance 2019 will convene over 400 leading finance practitioners from across the globe to help define and shape the transition to a sustainable financial system where finance delivers positive change.
Summary Agenda
Day 1 : Purpose, culture and sustainability
The first day of the conference will focus on embedding sustainability into the business models of financial institutions. It will look at how companies are responding to socioeconomic, environmental, technological and regulatory drivers to shape their internal culture, accelerate green / SDG finance and leverage fintech innovations.
Castle Reception: Scottish Government will host the conference reception in Edinburgh Castle at 1900 – 2030 on Tuesday 8th October 2019. Following the reception, held within the magnificent Great Hall, guests will be invited for a private viewing of the Honours of Scotland (Scottish Crown Jewels).
Day 2 : A New Investment Paradigm
The second day will explore the new ethical investment paradigm. It will consider the challenges around changing ESG data needs, asset owner appetite, innovative blended financial instruments and how asset managers are constructing new strategies to meet evolving demand.
Please CLICK HERE for further information.