7th Global Islamic Finance Issuers and Investors Leadership Dialogue 2024 | The Asset | TBA, Kuala Lumpur

Islamic finance has been facing headwinds stemming from high interest rates, slowing growth, and geopolitics. However, it is well placed to overcome these challenges given its focus on sustainability and social responsibility.

With its deep-rooted commitment to the public good, Islamic finance is ideally positioned to play a vital role in the global sustainability movement. Many Islamic countries are pursuing decarbonization strategies, signalling growth potential for sustainability-linked sukuk and sustainability-linked loans. Rising awareness of environmental, social and governance (ESG) principles among issuers should underpin the continued growth of this asset class. Fitch Ratings indicated that ESG sukuk outstanding has crossed US$36 billion at the end of 2023.

Closer ties developing between investors and issuers in Asia and Middle East are likely to bolster Islamic finance. Meanwhile, more international companies are tapping the liquidity of Islamic investors.

In the medium term, the sukuk market is set to benefit from increased automation and digitalization. Funding activities for start-ups are accelerating in the Middle East. In Asia, Malaysia’s first digital bank has launched operation while Indonesia is looking at the prospects of digital finance. Even outside Islamic countries, cross-border digital platforms are now providing a venue for Islamic finance offerings.

The dialogue gathers industry leaders, experts, and scholars to share their knowledge for the advancement of Islamic finance. It will also discuss how the sector will effectively address some of the most pressing challenges confronting the global economy.