The Islamic Finance Council UK (UKIFC) and the Global Ethical Finance Initiative (GEFI) have today announced the launch of the High-Level Working Group on Islamic Blended Finance (HLWG) at the 31st United Nations Climate Change Conference (COP31) in Antalya, Türkiye.
The two-year initiative brings together organisations across Islamic finance, sustainable finance and the wider blended finance ecosystem to explore opportunities to mobilise capital, strengthen partnerships and advance innovative financing approaches for sustainable development.
The HLWG is supported by Islamic Relief as its Strategic Partner, alongside members including Bank of Punjab, CIMB Islamic, Convergence, Global Alliance for a Sustainable Planet (GASP), Global Islamic Finance and Impact Investing Platform (GIFIIP) and Mercy Mission UK. Together, these organisations bring diverse expertise and perspectives from across the global financial landscape.
Blended finance has an important role to play in unlocking private capital for sustainable development and with global Islamic finance assets estimated at approximately US$6 trillion, spanning more than 140 countries and 2,000 institutions, there is significant potential to strengthen its contribution to the wider blended finance market.
The initiative seeks to bridge traditionally separate financing ecosystems, exploring how Islamic social finance, Shariah-compliant commercial capital and development finance can work together to address financing gaps for sustainable development. By drawing on the expertise of institutions across these markets, the HLWG will focus on translating the potential of Islamic blended finance into practical approaches that can support market development.
Its proposed activities include:
- Developing practical guidance and facilitating pilots to support the structuring and adoption of Islamic blended finance solutions.
- Building the evidence base through market research and case studies, identifying existing models, opportunities and lessons for wider application.
- Addressing barriers to market development through technical engagement and targeted recommendations for financial institutions, policymakers and development organisations.
UKIFC and GEFI will act as Secretariat to the HLWG, coordinating its activities and facilitating collaboration between members.
Following the COP31 launch, the HLWG will convene its inaugural meeting before the end of 2026. Members will agree the Group’s initial programme of work, operational arrangements and priority deliverables for 2027, establishing a practical roadmap for its two-year programme.
Commenting on the launch, Dr Omar Shaikh, Managing Director of GEFI and Advisory Board Member of the UKIFC said:
“Islamic finance and blended finance each have significant potential to support sustainable development, but that potential will only be realised through practical collaboration. This Working Group brings together institutions with the expertise to bridge these markets, identify viable financing models and address the barriers to wider adoption.”
Dr Mohammed Kroessin, Head of Islamic Microfinance at Islamic Relief Worldwide added:
“Climate justice means putting the needs and voices of vulnerable communities at the heart of finance. Islamic Relief Worldwide sees Islamic blended finance as an opportunity to connect solidarity with investment that helps people adapt to climate change and build resilient livelihoods. Through GEFI’s High-Level Working Group, we want to help turn that opportunity into practical solutions, with success measured by lasting benefits for those too often left behind.”
Joan Larrea, Chief Executive Officer at Convergence commented:
“At a time when traditional aid budgets are diminishing, connecting Islamic charitable funding with Shariah-compliant commercial capital offers an important opportunity to mobilize additional investment for sustainable development. Through this Working Group, we look forward to bringing lessons from blended finance and learning from Islamic finance practitioners to identify practical approaches that can channel more investment to underserved markets.”
For further information about the HLWG