Islamic Finance and ESG Similarities, Differences and Possible Convergence: A Critical Analysis
Organized by the Private Sector Development Research Network
Hosted by the Islamic Corporation for the Development of the Private Sector (ICD), Member of the Islamic Development Bank (IsDB) Group
Moderated by Dr Mohammed Alyami, General Manager Development Effectiveness Office, ICD
Wednesday, 18th of December 2024 from 9-10am EST / 5-6pm Riyadh
ABOUT THE SEMINAR
In this seminar, Dr. Al-Bashir will examine how Environmental, Social, and Governance (ESG) principles have become increasingly central to Islamic finance, sparking vital discussions among industry leaders, investors, and regulators while dominating conference agendas and academic discourse. The discussion will explore how both frameworks share fundamental principles of harm avoidance, risk mitigation, and purposeful investment beyond profit maximization, while facing distinct challenges. Dr. Al-Bashir will assess how the ESG landscape grapples with definition ambiguity, evolving reporting standards, and the risk of ESGwashing, while operating within a politically charged environment. He will contrast this with Islamic finance which, though smaller in scale, maintains more consistent regional practices and adheres to specific ethical restrictions such as the prohibition of interest. The seminar will conclude by examining the emergence of sustainable Sukuk as an example of the promising convergence of these frameworks, offering enhanced diversification opportunities and the potential to attract a broader investor base while amplifying the Islamic finance industry’s positive impact.
ABOUT THE SPEAKER
Muhammad Al-Bashir Muhammad Al-Amine
Advisor to the CEO on Shariah Matters, CEO Executive Office, ICD
Dr. Al-Bashir is currently an advisor to ICD’s CEO on Shariah matters. He was formerly the Group Head of Shariah Compliance of Alkhair Holding (formerly known as Bank Alkhair BSC). Prior to joining Alkhair Holding in 2005, Al-Bashir was the Head of Product Development and Shariah Compliance at the International Islamic Financial Market (IIFM). He was also a part-time lecturer at IE University, Spain, the Faculty of Laws International Islamic University Malaysia; Ibn Sina Institute of Technology (Malaysia); the Matriculation Center International Islamic University (Malaysia), the Bahrain Institute of Banking and Finance; the Kingdom University (Bahrain); and The Open University of Malaysia in Bahrain.
Dr. Al-Bashir is the author of Sukuk and Islamic Securitization Markets: Financial Engineering and Product Development (Brill,2012); Risk Management in Islamic Finance: An Islamic Analysis of Derivatives Instruments in Commodity Markets (Brill, 2008), Istisna (Manufacturing Contract) in Islamic Banking and Finance Law and Practice (A.S. Noordeen, 2001 & 2006) and Islamic Finance and Africa’s Economic Resurgence: Promoting Diverse and Localized Investment (Palgrave Macmillan, 2016). He has also contributed a number of articles published in international journals.