Alia Al Zarouni, Chief Operating Officer of the Dubai International Financial Centre (DIFC), addressed the Unlocking Islamic Sustainable Finance Summit, emphasizing the pivotal role of Islamic finance in sustainable development. She highlighted that Islamic finance inherently aligns with the United Nations Sustainable Development Goals (SDGs) due to its ethical and holistic framework.
Alia noted the significant growth of the Islamic finance market, currently valued at $4 trillion and expected to reach $6.7 trillion by 2027. She pointed out that the UAE accounts for over 40% of global sustainable issuances, many hosted within the DIFC, positioning the nation as a leader in sustainable finance.
To bridge the annual $6 trillion investment gap required by 2030 to meet climate targets, Alia outlined the DIFC’s key initiatives:
- Co-founding the Dubai Sustainable Finance Working Group to embed ESG principles and support Islamic finance potential.
- Launching the ‘Path to COP28’ program with the Global Ethical Finance Initiative (GEFI) to raise awareness and support financial sector transition.
- Announcing the region’s largest sustainable finance capital hub with ambitions to:
- Increase sustainability cash inflows to Dubai by $100 billion by 2030.
- Grow the sustainability-linked finance sector by 20%.
- Create an AI-enabled sustainability knowledge hub.
- Train 1 million sustainability leaders by 2030.
She concluded by calling for collaborative efforts to scale Islamic finance, not only to meet climate goals but to catalyse global decarbonization and resilience. “By harnessing the principles of Islamic finance and aligning them with the sustainable development agenda, we can foster a more equitable, sustainable, and prosperous future for all,” Alia affirmed.
Key Takeaways:
- Islamic Finance Alignment with SDGs: Islamic finance principles naturally support global sustainability goals.
- UAE’s Leadership Role: The UAE and DIFC are at the forefront of sustainable finance initiatives.
- DIFC’s Ambitious Goals: Significant initiatives are underway to bridge financing gaps and promote sustainable development.
- Call to Action: Collective efforts are essential to scale Islamic finance’s impact on global sustainability.