The role of Islamic finance in implementing the Sustainable Development Goals (SDGs)

The Islamic Development Bank (IsDB) and the United Nations Development Programme (UNDP) will host a side event at the UN Sustainable Development Goals Summit on “The role of Islamic finance in implementing the Sustainable Development Goals (SDGs)”.

The event will discuss the concept of Islamic finance with special emphasis on how this model balances rewards and risks, in a fair and transparent manner, linking finance with the real economy. Panelists will explain how various components and instruments of Islamic finance could be a transformative force for unlocking additional resources to finance the SDGs.

Mr. Sayed Aqa, IsDB’s Vice President for Cooperation and Capacity Development, will be leading the IsDB delegation at the summit and will discuss the opportunities of non-traditional forms of financing development.

Lifetime Opportunity

“The SDGs provide a lifetime opportunity to address the challenges of our generation,” said Mr. Aqa. “As development experts, we must think out of the box in order to address these challenges. That is why Islamic finance, which is a non-traditional means of financing, provides a vital opportunity especially in engaging communities that have been excluded from economic participation. This is a historical moment, we must use this opportunity to change the lives of the poor and provide them with
sustainable livelihoods.”

Mr. Aqa added that achieving the SDG targets will require the international community to unlock substantial new sources of public and private financing. According to him, it is widely acknowledged that untapped sources of finance, especially Islamic finance, is gaining attention worldwide because of its emphasis on risk-sharing, linkage to the real sector economy, and partnership-based and equity-focused approach. Islamic Finance, therefore, has great potential for equitable and pro-poor
development in support of SDGs.

The side event will take place in Conference Room 2 at the UN Secretariat in New York, from 10am to12pm on 26 September. It will feature prominent development experts including Ms Helen Clark, Administrator of UNDP, Mr. Shamshad Akhtar, Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), Dr. Zul Kifl Salami, IsDB Board Executive Director , and Mr. Ahmed Fayed, Director of IsDB’s Islamic Financial Services Department. The side event will be opened by Mr. Sayed Aqa, Vice President of IDB, and moderated by IsDB’s Chief Economist Prof. Savas Alpay.

More Information on Islamic Finance and Sustainable Development Goals

Download IDB Publication – on Role of Islamic Finance in Achieving Sustainable Development Goals