Another important source of innovative financing opportunities is the Islamic finance industry. This sector demonstrates annual growth of approximately 20%, which is a highly significant indicator, Syed Husain Quadri, Director of PGARM at the Islamic Development Bank Group, said during the session titled “8th SDG Dialogue: Innovative Financing for Sustainable Development – Beyond Aid and Traditional Official Development Assistance (ODA)” held as part of the Islamic Development Bank Annual Meetings in Baku, APA-Economics reports.
According to him, based on the analysis of the ICD Institute, the size of the sector reached approximately $6 trillion by the end of 2024.
“When we compare this figure with the $4 trillion financing gap required to achieve the SDGs, we can see that there are significant opportunities here and that this potential should be utilized more effectively. As part of Islamic finance, attention can also be given to innovative instruments such as green sukuk and social sukuk. Overall, the size of the sukuk market is approximately $50 billion.”
He also noted that the Islamic Development Bank has played a leading role in this field.
“We are proud to have been the first international financial institution to launch the first Green and Social Sukuk in 2019. At the end of last year, we issued a €500 million Green Sukuk on the London Stock Exchange, and demand for the issuance was five times higher than the offered amount. If our green sukuk receives demand five times greater, this indicates strong market interest in these instruments,” he said.
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