RIYADH, Saudi Arabia, April 28. Islamic finance has remarkable capacity to nurture ecosystems, said Dr. Stephen Groff, Governor, National Development Fund of Saudi Arabia, addressing the 18th Islamic Development Bank Global Forum on Islamic Finance held as part of the IsDB annual meetings in Riyadh, Trend reports.
He pointed out that Islamic finance not only promotes risk sharing, but also introduces innovative approaches that benefit both Muslim and non Muslim communities worldwide,
“Such financing activities are critical in driving sustainable development across many countries, particularly in times of crisis. Furthermore, entrepreneurship within the realm of Islamic finance is vital. In countries like Saudi Arabia, entrepreneurship isn't just seen as a driver of progress, but as a key element in achieving inclusive and sustainable growth. Islamic finance frameworks, with their emphasis on risk sharing, offer a basis for fostering developmental finance initiatives that are both sustainable and ethically sound,” he said.
Groff believes that creating environments that foster innovation and entrepreneurship is critical.
“Shariah-compliant funding options empower entrepreneurs to pursue opportunities while simultaneously upholding core principles. Technological advancements have made financial services more accessible and ethical, aligning with the values of Islamic finance. Products like Sukuk align with sustainable development goals,” he said.
Groff went on to add that another crucial aspect of financial progress is the integration of technology into finance and the remarkable impact that FinTech has had on expanding access to financial products and services.
“As all of you are aware, FinTech now plays a pivotal role in fostering inclusivity across financial systems, and Islamic finance is no exception. Technological advancements have given rise to platforms that not only enhance accessibility to financial services, but also uphold ethical standards, particularly when paired with well structured products and services,” he said.
Groff pointed out that Islamic finance has a remarkable capacity to nurture ecosystems that are conducive to entrepreneurship by putting a strong emphasis on economic activities within financial transactions. This in turn gives entrepreneurs the space they need to innovate and excel, he added.
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 will also feature 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.