KARACHI: Islamic bonds, or Sukuk, can be crucial in financing environmentally and socially responsible projects like renewable energy and green infrastructure, aligning profitability with ethical investment, experts at a conference said on Tuesday.
The AlBaraka Forum for Islamic Economy, in collaboration with the Islamic Chamber of Commerce and Development (ICCD) and with the partnership of Al Baraka Bank Pakistan, held the 4th AlBaraka Forum Regional Conference under the theme ‘Sukuk for Sustainable Development: International Best Practices’.
This event highlighted the transformative role of Islamic finance, particularly Sukuk, in driving sustainable economic growth.
“Sukuk represents more than just financial instruments; they embody a commitment to sustainable and ethical development that resonates deeply with our values. This conference has highlighted the profound impact that Sharia-compliant finance can have on a global scale, offering innovative solutions for pressing economic and environmental challenges,” stated Secretary General of the Albaraka Forum for Islamic Economy Yousef Hassan Khalawi during his welcome remarks.
“We are inspired by the potential of Sukuk to fundamentally transform investment landscapes and drive meaningful change, ensuring financial practices that are not only profitable but also principled,” he added.
The conference addressed regulatory and legal frameworks affecting global Sukuk issuance and highlighted successful international case studies, offering practical insights and replicable practices. The session also spotlighted the landmark decision by Pakistan’s Supreme Court to move towards a fully Islamic banking system, which sets a precedent for other nations considering similar reforms.
The event further facilitated productive dialogue on the challenges and opportunities in the Sukuk market, including the need for more standardised structures and greater transparency. The discussion culminated in actionable recommendations for advancing the role of Sukuk in sustainable finance.
