Industry leaders to discuss the potential of Islamic finance to deliver green and sustainable finance at UN Environment Programme Finance Initiative’s Global Roundtable in Dubai, UAE
Putting a focus on sustainable finance is not just compliant with Islamic principles but meets the wider social goals of Shari’ah-compliant investing/Shari’ah-compliant finance. Islamic markets (markets with Muslim majority populations) produce nearly $7 trillion in GDP and are home to more than 1.6 billion people. Global Shari’ah-compliant assets totalled $2.0 trillion at the end of 2015, and are expected to exceed $3 trillion by 2020. These factors combined ensure that Islamic finance can make a significant contribution to the move to a sustainable financial industry.
The Responsible Finance & Investment (RFI) Foundation and the UN Environment Programme Finance Initiative (UNEP FI) will co-present a session entitled “Values to Value: Green & Sustainable Islamic Finance”, at the Global Roundtable (GRT) in Dubai, UAE. Highlighting areas where Islamic Finance principles most closely align with wider concepts of sustainability, the session will introduce several examples of green and sustainable Islamic Finance practices that align with, and can become an added tool for all responsible finance institutions.
“Although most Islamic financial institutions have yet to integrate environmental impact or many other sustainability issues into their financial decision-making process, they will face more market pressure to do so in coming years,” stated Blake Goud, CEO of the RFI Foundation, a think tank focused on identifying shared values within responsible finance.
He further added, “Muslim majority countries with young populations are seeing new customers from the Millennial generation bringing their influence to financial markets. For Islamic financial institutions to meet the expectations of these new stakeholders, they must expand to consider environmental, social and governance (ESG) factors. Incorporating these considerations within Islamic finance, these stakeholders say, is not just compliant with Islamic principles but is an important extension to fully meet the wider social goals of Shari’ah.’
Eric Usher, Head of UNEP-FI commented “Already, 53 Organisation of Islamic Cooperation (OIC) countries have either signed or ratified the Paris Agreement, so we are starting to see momentum building in the move to a more sustainable finance industry in markets where Islamic finance is important. This trend provides a great opportunity to engage the world’s 1.6 billion Muslims to support sustainable growth globally. The Islamic finance industry can be a significant contributor to delivering the internationally agreed Sustainable Development Goals.
The “Values to Value: Green & Sustainable Islamic Finance” session will feature Islamic Corporation for the Development of the Private Sector (ICD) CEO Khaled Al-Aboodi, Dubai Islamic Economy Development Centre CEO, Abdulla Al Awar, former Governor of Bank Negara Malaysia Dr. Zeti Akhtar Aziz, Abu Dhabi Islamic Bank CEO Tirad Mahmoud and Arabesque Partners CEO Omar Selim.
The session will be held on 25 October 2016 at 10:50 a.m. at the upcoming 14th edition of the UNEP-FI Global Roundtable to be held in Dubai, UAE. The GRT is hosted by the Ministry of Climate Change and Environment of the United Arab Emirates with the support of the Central Bank of the UAE. It will run from 25-26 October 2016 at the Grand Hyatt Hotel in Dubai. For more information or to register for the GRT, please visit: http://www.unepfi.org/grt/2016/
