There is pressing need to accelerate issuance of green sukuk - Muhammad Sulaiman Al Jasser

Economy Materials 29 April 2024 12:51 (UTC +04:00)
There is pressing need to accelerate issuance of green sukuk - Muhammad Sulaiman Al Jasser
Laman Zeynalova
Laman Zeynalova
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RIYADH, Saudi Arabia, April 29. There is a pressing need to accelerate the issuance of a green sukuk, said Dr. Muhammad Sulaiman Al Jasser, Chairman of the Islamic Development Bank (IsDB) Group, addressing the panel discussions on Accelerating Climate Finance through Green and Sustainability Sukuk, held as part of the Islamic Development Bank Group (IsDB) annual meetings in Riyadh, Trend reports.

Sukuk (Islamic bond or “Sharia-compliant” bond) is an Islamic financial certificate that represents a portion of ownership in a portfolio of eligible existing or future assets.

“The world continues to grapple with a substandard funding deficit for the Sustainable Development Goals (SDGs). To help bridge this gap innovative financial instruments need to be pursued and mobilized. From the perspective of the Islamic Development Bank, we believe there is a pressing need to accelerate the issuance of sukuk, particularly green and sustainability sukuk to mobilize increased financing for the SDGs,” he said.

Al Jasser pointed out that IsDB has ambitiously set a climate finance target of 35 percent by 2025.

“The good news is that we have already surpassed this target two years ahead.
Green and sustainable sukuk are fully aligned with the globally accepted principles of the International Capital Market Association (ICMA). This has been reaffirmed by the guidance of sustainable sukuk that we are launching here together with ICMA and the London Stock Exchange. We joined hands at the recent COP28 to develop this guidance. The aim is to demystify the sukuk instruments defined green, social and sustainability sukuk and demonstrate their alignment with ICMA principles,” he said.

The Islamic Development Bank Group (IsDB) is holding its 2024 Annual Meetings and Golden Jubilee in Riyadh from April 27-30, under the Royal Patronage of the Custodian of Two Holy Mosques, King Salman Bin Abdulaziz Al-Saud.

The 2024 Annual Meetings are being held under the theme of “Cherishing our Past, Charting our Future: Originality, Solidarity and Prosperity”, which marks IsDB’s 50 years of fostering socio-economic development in its member countries.

Among other topics, the meetings also featured roundtable on COP29 with participation of Azerbaijani government representatives.

As the premier South-South multilateral development Bank, the 2024 IsDB Group Annual Meetings and Golden Jubilee attracts international and regional attention.

The Annual Meetings feature a series of side events with top-level panelists from government, international and regional organizations, the private sector, academia, and civil society.

Ministers of Economy, Planning, and Finance from IsDB's 57 member countries are participating in the event, along with representatives of international and regional financial institutions, Islamic banks, private sector companies, national and international development finance institutions, international and regional organizations, NGOs, chambers of commerce & Industry, and business councils.