Dr Mohamed Eskandar Shah

World Bank: Islamic finance value proposition has to be clear

The World Bank said the Islamic capital market's (ICM) value proposition has to be very clear to show that its concept is more powerful than the environmental, societal and governance (ESG) investment schemes. World Bank financial sector specialist consultant Dr Mohamed Eskandar Shah said ESG's value proposition seems to be quite straight forward compared to Islamic finance. He noted that between 2007 and 2019, the ICM, measured in global shariah equities, saw a 4.3% growth a year compared to the 10.2% expansion in ESG equities. As such, Islamic finance could become a subset of ESG investing, or eventually people will brand Islamic finance in the context of ESG, rather than Islamic finance having its own identity.

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