15 May, 2023
The Islamic Development Bank Institute (IsDBI) has teamed up with the Islamic Financial Services Board (IFSB) to launch the report: ‘Islamic Financial Services Industry Development Ten-Year Framework and Strategies: A Final Review.’
The launch was held during the 17th IsDB Global Forum on Islamic Finance on 12 May 2023, in conjunction with the IsDB Group Annual Meetings in Jeddah, Kingdom of Saudi Arabia.
Anchored on three core pillars, development, transformation, and access, this final review presents an assessment of the effectiveness of the various recommendations and initiatives in the mid-term review (MTR) on the growth and development of the global Islamic financial services industry over the past years since the MTR.
In light of the fast-changing dynamics of the global financial ecosystem, the final review suggests that the Islamic financial services industry should continue to adapt to digital transformation, support the Sustainable Development Goals (SDGs), complement various Environmental, Social, and Governance (ESG) initiatives, fund infrastructural projects, and support post-COVID-19 economic recovery across many jurisdictions.
Given the developmental needs of the future, there will be a need to develop a diversified Islamic financial services industry that can serve the financial needs of all segments of the population, contribute to mitigating income inequalities, provide sustainable financing for infrastructure development, protect the environment, and be resilient to shocks. This would, however, necessitate using new innovative organizational formats and business models beyond traditional banks.
The IFSB’s Secretary General, Dr. Bello Lawal Danbatta, in his remarks, acknowledged the financial and technical support provided by the IsDB Institute. Dr. Danbatta commended the continuous excellent working relationship with the IsDB on many fronts including this project.
He added that while the document is called a Final Review, this does not in any way disregard the fact that the industry is growing with a current worth of well over USD 3 trillion, and its soundness, stability, and resilience will continue to be tested and shaped by the changing dynamics of the global financial ecosystem.
Acting Director General of IsDB Institute, Dr. Sami Al-Suwailem, expressed his appreciation for the painstaking efforts undertaken by the IFSB and IsDBI teams who worked tirelessly to bring the project to fruition. The IsDBI team consisted of Dr. Hylmun Izhar (Senior Economist, Project Manager), Mr. Syed Faiq Najeeb (Senior Islamic Finance Specialist), and Mr. Yahya Aleem ur Rehman (Team Leader, Knowledge Leaders team).
A video recording of the report launching session is available on YouTube here.
