Islamic Finance

The global Islamic finance industry is worth over USD2 trillion and is projected to grow to ~USD5 trillion by 2025. However, the global economy has been severely impacted by the pandemic, volatility in oil prices, and uncertain macroeconomic environment (Russia-Ukraine war, possibility of another recession). Thus, the Islamic finance industry's development and expansion will be challenging over the next few years. Most of the sustainability efforts are led by governments globally. However, environmental preservation and social development targets are shared responsibilities of public and private sectors. Accordingly, the scope of Islamic finance is not limited to raising debt. Islamic finance now contributes to building a greener planet via funding sustainable businesses, which will benefit from perks such as lower interest rates compared with those for conventional debt.