Islamic Finance Plays Crucial Role in Post-COVID19 Economic Recovery

Strategic Insights -

The 15th Islamic Development Bank (IsDB) Global Forum on Islamic Finance, convened under the auspices of H.E. Dr. Muhammad Al Jasser, President and Chairman of the IsDB Group, brought together senior development practitioners and private sector experts to discuss the role of Islamic finance in post-COVID19 economic recovery. The high-level webinar, held on August 28, 2021, focused on strategies for achieving a sustainable recovery and reducing poverty in member countries. H.E. Dr. Al Jasser emphasized the importance of infrastructure investments and the potential of Islamic finance to serve as a source of finance for developing economies.

Key Takeaways:

  • The COVID-19 pandemic has exacerbated poverty and stalled human development in IsDB member countries, highlighting the need for a sustainable recovery.
  • Reducing poverty, particularly in health and education, is crucial for achieving human development and promoting human dignity.
  • Infrastructure investments are essential for developing economies, and Islamic finance can serve as a vital source of finance for these investments.
  • The IsDB has launched a joint effort with the World Bank to develop a reference guide on Islamic finance for infrastructure public-private partnerships.
  • The IsDB Prize for Impactful Achievement in Islamic Economics recognized two crowdfunding platforms, LaunchGood and Seed Out, for their innovative roles in funding projects that advance Islamic economics principles.
  • The forum emphasized the importance of integrating Islamic finance principles with solutions to economic challenges facing IsDB member countries.
  • Keynote speakers discussed the potential of Islamic finance to fill the financing gap for economic recovery and promote public-private partnerships for infrastructure financing.

Statistics:

  • The COVID-19 pandemic has had a significant impact on poverty and human development in IsDB member countries, with [no specific data provided].
  • The IsDB has invested in various initiatives to reduce poverty and promote human development, including investments in health and education sectorsamounting to [no specific data provided].
  • Infrastructure investments are crucial for developing economies, with the World Bank estimating that [no specific data provided] billion is needed for infrastructure development in developing countries.
  • The joint World Bank-IsDB effort to develop the Islamic finance for infrastructure PPP Projects reference Guide aims to shed light on the essential aspects of Islamic finance related to infrastructure public-private partnerships.

Sources:

  • H.E. Dr. Muhammad Al Jasser, President and Chairman of the IsDB Group
  • "Global Forum on Islamic Finance 2021." Islamic Development Bank Group, 2021, www.isdb.org/17th-global-forum-on-islamic-finance
  • "LaunchGood and Seed Out win prestigious IsDB Prize for Impactful Achievement in Islamic Economics 2021." IsDB Institute, 2021, institute.isdb.org/en/news/launchgood-and-seed-out-win-prestigious-isdb-prize-for-impactful-achievement-in-islamic-economics-2021