Issues and Challenges ofSustainable Finance: An Experience From the Islamic Banking Industry

Islamic finance is founded on the intended outcome of Maqasid Shari’ah, which promotes value creation and harm prevention. This value resonates well with sustainability principles that advocate businesses to create a positive impact on the environment, society, and economy. These shared values put I...

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Bibliographic Details
Published in:Islamic Finance and Sustainable Development: A Global Framework for Achieving Sustainable Impact Finance
Main Author: Abdullah N.A.I.N.; Hamid N.A.; Haron R.
Format: Book chapter
Language:English
Published: Taylor and Francis 2024
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85190938070&doi=10.4324%2f9781003468653-21&partnerID=40&md5=2d2bbc81051da911c47cda8a0df43f8c
id 2-s2.0-85190938070
spelling 2-s2.0-85190938070
Abdullah N.A.I.N.; Hamid N.A.; Haron R.
Issues and Challenges ofSustainable Finance: An Experience From the Islamic Banking Industry
2024
Islamic Finance and Sustainable Development: A Global Framework for Achieving Sustainable Impact Finance


10.4324/9781003468653-21
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85190938070&doi=10.4324%2f9781003468653-21&partnerID=40&md5=2d2bbc81051da911c47cda8a0df43f8c
Islamic finance is founded on the intended outcome of Maqasid Shari’ah, which promotes value creation and harm prevention. This value resonates well with sustainability principles that advocate businesses to create a positive impact on the environment, society, and economy. These shared values put Islamic finance naturally at the forefront to drive the sustainability agenda. Islamic finance and environmental, social, and governance (ESG) investing approaches have many shared principles and possess solid practices and policies. The Islamic finance industry will continue to expand as it draws new participants and evolves its products and service offerings to take a more active role in the global effort to achieve the Sustainable Development Goals (SDGs). In this regard, Shariah-compliant ESG investment is expected to continue recording significant growth as the strong demand for institutions to deploy funds ethically and awareness of climate change and social justice expands. This chapter explores the contemporary issues and challenges concerning Islamic sustainable finance to provide fresh perspectives on the changing world of Islamic finance. Challenges include high costs and legal issues, which hinder Islamic financial institutions from fully embracing and committing to the sustainability agenda. © 2024 selection and editorial matter, Mohd Ma’Sum Billah, Rusni Hassan, Razali Haron and Nor Razinah Mohd Zain; individual chapters, the contributors.
Taylor and Francis

English
Book chapter

author Abdullah N.A.I.N.; Hamid N.A.; Haron R.
spellingShingle Abdullah N.A.I.N.; Hamid N.A.; Haron R.
Issues and Challenges ofSustainable Finance: An Experience From the Islamic Banking Industry
author_facet Abdullah N.A.I.N.; Hamid N.A.; Haron R.
author_sort Abdullah N.A.I.N.; Hamid N.A.; Haron R.
title Issues and Challenges ofSustainable Finance: An Experience From the Islamic Banking Industry
title_short Issues and Challenges ofSustainable Finance: An Experience From the Islamic Banking Industry
title_full Issues and Challenges ofSustainable Finance: An Experience From the Islamic Banking Industry
title_fullStr Issues and Challenges ofSustainable Finance: An Experience From the Islamic Banking Industry
title_full_unstemmed Issues and Challenges ofSustainable Finance: An Experience From the Islamic Banking Industry
title_sort Issues and Challenges ofSustainable Finance: An Experience From the Islamic Banking Industry
publishDate 2024
container_title Islamic Finance and Sustainable Development: A Global Framework for Achieving Sustainable Impact Finance
container_volume
container_issue
doi_str_mv 10.4324/9781003468653-21
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85190938070&doi=10.4324%2f9781003468653-21&partnerID=40&md5=2d2bbc81051da911c47cda8a0df43f8c
description Islamic finance is founded on the intended outcome of Maqasid Shari’ah, which promotes value creation and harm prevention. This value resonates well with sustainability principles that advocate businesses to create a positive impact on the environment, society, and economy. These shared values put Islamic finance naturally at the forefront to drive the sustainability agenda. Islamic finance and environmental, social, and governance (ESG) investing approaches have many shared principles and possess solid practices and policies. The Islamic finance industry will continue to expand as it draws new participants and evolves its products and service offerings to take a more active role in the global effort to achieve the Sustainable Development Goals (SDGs). In this regard, Shariah-compliant ESG investment is expected to continue recording significant growth as the strong demand for institutions to deploy funds ethically and awareness of climate change and social justice expands. This chapter explores the contemporary issues and challenges concerning Islamic sustainable finance to provide fresh perspectives on the changing world of Islamic finance. Challenges include high costs and legal issues, which hinder Islamic financial institutions from fully embracing and committing to the sustainability agenda. © 2024 selection and editorial matter, Mohd Ma’Sum Billah, Rusni Hassan, Razali Haron and Nor Razinah Mohd Zain; individual chapters, the contributors.
publisher Taylor and Francis
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language English
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