The global Islamic finance industry is expected to reach $5 trillion by 2025
Yousuf Mohamed Al Jaida, Managing Director of Qatar Financial Center (QFC) addressing the 4th IFSB Innovation Forum yesterday.
Doha: The outlook for Islamic finance points to strong future growth. Embracing innovation, technological advancements and financing instruments can provide untapped access to the Islamic finance market, said Yousuf Mohamed Al Jaida, Managing Director of Qatar Financial Center (QFC) at the 4th Qatar Innovation Forum. Islamic Financial Services Board (IFSB).
The 4th IFSB Innovation Forum was organized by QFC and IFSB, and sponsored by the Qatar Central Bank (QCB), yesterday attended by key stakeholders from the global Islamic finance community. Addressing the forum, Al Jaida said, “While sustainable development efforts are led by the government, environmental preservation and social developments are shared responsibilities of the public and private sectors. Today, the global Islamic finance industry is worth over $2 trillion and is expected to grow to nearly $5 trillion by 2025.”
He said this annual event has been instrumental in facilitating the exchange of views, building stronger alliances, broader connections and identifying market gaps and opportunities that lead to the development of the Islamic financial services industry.
Globally, we can observe that capital markets are developing at breakneck pace and adopting relevant sustainability standards and green taxonomies. This reality requires the adaptation of innovative forms of sustainable financing instruments that diverge from the principle of Islamic finance. In fact, industry experts predict that Shariah-compliant ESG investing will increase dramatically in the coming years as demand for ethical financing grows and awareness of climate change and social justice expands, noted. Al Jaida.
“One asset class believed to contribute to the growth of environmental, social and governance (ESG) assets are sustainable and green sukuks. The outlook for Islamic finance points to strong future growth. They have performed extremely well over the past decade, showcasing a growing number of products and asset classes and they are expanding their geographic presence,” he said.
He added: “Much can be done to develop Islamic finance and improve financial inclusiveness. Embracing both innovation, technological advancements and financing instruments can provide untapped access to the Islamic finance market, while working on policies and regulations remains the main building block to bring the industry to the national level of growth”.
Qatar has a long-standing commitment to addressing global environmental challenges and promoting sustainable development. Supporting the global community’s efforts towards sustainable development and environmental preservation is an integral part of Qatar’s sustainability strategy. This was highlighted at the United Nations Climate Action Summit in 2019, where the Emir His Highness Sheikh Tamim bin Hamad Al Thani announced that Qatar would provide $100 million to support small island states. developing and least developed States in their fight against the impact of climate change. and natural disasters.
Al Jaida said that internally, regulatory reforms and national initiatives reflect the state’s ambitions to mitigate the impact of climate change and promote sustainability. At the heart of the Qatar National Vision 2030 is the drive to transform the country into an advanced society capable of achieving sustainable development.
In 2021, Qatar launched the National Climate Change Action Plan, a strategic framework developed in coordination with over 50 entities to address climate change, addressing over 35 mitigation measures and over 300 climate change initiatives. ‘adaptation. One of the ambitious national goals of the climate plan is to reduce greenhouse gas emissions by 25% by 2030, he said.