Pioneering Islamic Sustainable Finance Initiative launched at GCBC Capacity-Building Forum in Dubai
Dubai, UAE – 9th Dec, Global Ethical Finance Initiative (GEFI), Islamic Finance Council UK (UKIFC) and HSBC Bank Middle East have come together today to launch a new 1-year partnership to cultivate a purpose-driven Islamic finance ecosystem that can increase sustainable finance flows at scale.
Against the backdrop of UAE Banks Federation’s COP28 pledge of over AED 1 trillion in sustainable finance by 2030 and DIFC’s Sustainable Finance Catalyst commitment to scale future capacity by training 1 million sustainability leaders by the same year, the Islamic Sustainable Finance Initiative (ISFI) aims to accelerate Islamic finance’s role in achieving sustainable development goals, with a focus on creating systemic change through awareness, capacity building, and engagement across the Middle East, North Africa, and Turkey (MENAT) region.
Having recognised the shared principles of ethical investing and societal responsibility, GEFI and UKIFC have been working collaboratively for several years to integrate Islamic finance into mainstream sustainable finance. The ISFI will build on GEFI / UKIFC’s previous work with a structured programme focused on:
- Market Awareness & Engagement – round tables and conferences
- Capacity Building – a structured CPD-accredited training course covering both sustainable finance and Islamic sustainable finance
- Knowledge Hub & Portal – Repository of guidance, best practices, and resources including toolkits
- Retail survey – focusing on GCC consumers, the survey will look to capture understanding and appetite towards sustainability linked products.
HSBC has been a leader in integrating sustainability with Islamic finance, pioneering initiatives such as sustainable sukuk offerings and ESG-linked Islamic structures to support environmentally and socially responsible investments in line with Islamic principles of ethical financing. With its support of the ISFI, through philanthropic funding, HSBC Bank Middle East is demonstrating its commitment to supporting the development of sustainable finance infrastructure in the middle east.
The ISFI also aligns with the UAE Central Bank’s vision, as set out at COP28, for Islamic finance to be a beacon of sustainable finance in the region.
The announcement was made during the Global Capacity Building Coalition’s (GCBC) inaugural Climate Finance Capacity Building Forum, delivered in partnership with GEFI and DIFC, with support from UAE Banks Federation and CISI. The Forum provided practical advice and guidance on building the capacity required to align financial flows with long-term climate goals and accelerate the journey to net zero.
With its leadership in green finance, commitment to sustainable development, established position as a global hub for Islamic finance, and supportive strategic government policies and financial infrastructure, the UAE is well placed to host the regional Islamic Sustainable Finance Initiative.
Omar Shaikh, Managing Director, GEFI
“Our collaboration with HSBC represents a pivotal step towards integrating Islamic finance with global sustainability efforts. By leveraging our shared resources and expertise, we are poised to make substantial contributions to sustainable development in the MENAT region.”
Simon Thompson, Managing Director, Global Capacity Building Coalition
“Islamic sustainable finance has a key role to play in helping countries, companies and communities achieve the objectives of the Paris Agreement and the UN Sustainable Development Goals, especially in emerging markets and developing economies. I warmly welcome this innovative partnership between GEFI, UKIFC and HSBC Middle East with its focus on capacity-building; developing the capabilities of Islamic financial institutions, and the expertise and skills of Islamic finance professionals, to align with global best practice.”