The COVID-19 pandemic and its adverse impacts have sparked greater attention towards Islamic social finance instruments and socially responsible investments (SRI). For instance, on 19 June 2020, the Islamic Development Bank (IDB) raised USD 1.5 billion with its Sustainability Sukuk to assist its 57 member countries in funding COVID-19-related measures and expenditures. On 22 September 2020, Malaysia issued the Sukuk Prihatin, raising up to RM 500 million (approximately USD 121.5 million) to finance its economic stimulus packages and COVID-19 recovery plans. Indonesia also echoed this move, by issuing a retail cash waqf-linked Sukuk on 19 October 2020 to finance its economic COVID-19 recovery plan.
The shift towards Islamic social finance would reinforce Islamic finance’s value proposition as a ‘responsible finance’ industry—pursuing goals beyond profit; striving for a just and fair system; promoting brotherhood and cooperation, and developing a community-oriented and entrepreneur-friendly environment.
The present Islamic Finance Talk Series (IFTS) delves further into the role of Islamic social finance during and post-pandemic.
Speaker: Dr. Rifki Ismal, Assistant Secretary General, Islamic Financial Services Board (IFSB)
Moderator: Dr. Mahbubi Ali, Associate Fellow, IAIS Malaysia
PowerPoint Presentations (in PDF format)
Watch the recording at IAIS Malaysia's FB page, click HERE to watch