The Central Bank of the United Arab Emirates (CBUAE) and the Higher Shari’ah Authority have issued guiding principles on sustainable Islamic finance.
These guidelines aim to incentivize and encourage Islamic financial institutions to reinforce sustainability within their practices and processes, aligning with a vision that considers both environmental and social dimensions.
The issuance of the guiding principles coincides with the UAE holding the Conference of the Parties (COP28), which highlights sustainable practices and encourages united efforts to address sustainability-related challenges.
The guiding principles comprise ten directives for Islamic financial institutions, aimed at instituting and effectively implementing sustainability. These directives imply clear strategies and plans to facilitate this objective.
Additionally, the guiding principles outline Shari’ah-based foundations for improving decision-making approaches, particularly with regard to sustainability. They also emphasize the development of financial products that will positively impact and engage with environmental and social factors.
Commenting on the broadcast Khaled Mohamed Balama, Governor of CBUAEsaying,
“Islamic financial institutions play a critical role in fostering collaboration and commitment to improve sustainability practices within the UAE financial sector. This aligns with the vision of our wise leadership to build a more sustainable future. “The guiding principles aim to elevate the position of Islamic finance as a prominent sustainable financial sector in the UAE, leveraging the strength of Shari’ah regulations and its ability to integrate sustainability standards.”
Sheikh Dr. Ahmed Abdel Aziz Al-Haddad, Chairman of the Supreme Shari’ah Authorityhe claimed,
“Islamic financial institutions are actively engaged in their social contributions and the Higher Shari’ah Authority is dedicating its capabilities and expertise to increasing efforts to boost sustainable financing. These developments are aligned with the achievement of legitimate objectives and desired goals.”
News source: Emirates News Agency