UN and Islamic Development Bank Unite to Leverage Islamic Social Financing for COVID-19 Response and Sustainable Development

As the world grapples with the COVID-19 pandemic's devastating health and economic crisis, the United Nations (UN) and the Islamic Development Bank have come together to explore how Islamic social financing can support the pandemic response, economic recovery, and sustainable development. The International Dialogue on the Role of Islamic Social Financing in Achieving the SDGs aims to provide urgently needed support for millions pushed into extreme poverty. Deputy Secretary-General Amina Mohammed emphasized the importance of exploring Islamic social financing to support the pandemic response through initiatives like the ACT-Accelerator and its COVAX Facility.

Key Takeaways:

• The UN and Islamic Development Bank are partnering to explore the role of Islamic social financing in achieving the Sustainable Development Goals (SDGs) and responding to the COVID-19 pandemic.
• The International Dialogue on the Role of Islamic Social Financing in Achieving the SDGs aims to provide support for economic recovery, pandemic response, and sustainable development.
• Islamic social financing, based on faith principles of inclusivity and fairness, encompasses traditional instruments such as zakat, sadaqa, and waqf, as well as microfinancing instruments like benevolent loans.
• Nearly 60 million COVID-19 vaccines have been shipped to over 120 countries through the UN-backed COVAX initiative, which still requires $2.8 billion to end the acute phase of the pandemic by the end of the year.
• The dialogue will facilitate a series of virtual seminars to foster a better understanding of Islamic social financing and existing UN platforms.
• The expected outcomes of the dialogue include an outcome report on leveraging Islamic social financing for the SDGs, a knowledge repository, and e-learning modules at the UN Institute for Training and Research (UNITAR).

Statistics:

• $300 billion: annual obligatory almsgiving or zakat through Islamic traditional instruments.
• 120: participating countries in the COVAX vaccine equity mechanism.
• 60 million: COVID-19 vaccines shipped to developing countries through COVAX.
• $2.8 billion: still required to end the acute phase of the pandemic by year's end through COVAX.
• November: expected completion date of the International Dialogue.

Sources:

• United Nations
• Islamic Development Bank
• United Nations Institute for Training and Research (UNITAR)
• UN Economic and Social Commission for Western Asia (ESCWA)
• "Global economic forecast" (UN publication)
• "Launching of the International Dialogue on the Role of Islamic Social Financing in Achieving the SDGs" (UN press release)
• Ramadan: Islamic holy month in which the dialogue is taking place.