Dec 2 Islamic banks are gradually embracing
socially obliged finance, from renewable appetite to
microfinance efforts, assisting clear new appropriation sources for
environmentally-friendly projects, an attention consult shows.
The dual sectors have grown alone from any other,
but immature projects could advantage from drumming Islamic banks in
countries like a United Arab Emirates and Malaysia, where they
now reason a entertain of sum banking assets.
Around two-thirds of financing in Saudi Arabia follows
Islamic principles, that dissuade investing in gambling, tobacco
and alcohol. This resembles a screening methodology used by
ethical supports in Western markets.
Commonalities could assistance intersect dual fast-growing bond
markets: Moody’s Investors Service estimates distribution of Islamic
bonds, or sukuk, will strech $70 billion this year, compared to
over $80 billion for immature bonds.
Green financial is increasingly critical for Islamic banks
seeking to compute themselves from their conventional
peers, a Bahrain-based General Council for Islamic Banks and
Financial Institutions (CIBAFI) pronounced in a report.
Islamic banks wish to urge their grant to local
economies with pursuit creation, infrastructure and SME financing as
top priorities, a consult conducted by CIBAFI between May and
The consult drew submit from 86 Islamic financial institutions
across 29 countries especially from a Middle East and Southeast
Asia, as good as Africa.
Around a third of tiny Islamic banks cited a moderate
exposure to a immature and renewable appetite sectors, compared to
15.5 percent for vast Islamic banks.
In Malaysia a internal lender has introduced immature mortgages to
facilitate designation of solar systems, while an Islamic bank
in Jordan is building alternatives to medium-term loans to
fund appetite fit and renewable appetite projects.
(Editing by Simon Cameron-Moore)