2024-04-28 19:19:14
Islamic finance has great potential to support ecosystems.
As Trend reports on Sunday, the Manager of the National Development Fund of Saudi Arabia, Stephen Groff, said this while speaking at the 18th Global Forum of the Islamic Development Bank on Islamic finance within the framework of the annual meetings of the IDB in Riyadh, Day.Az reports.
He noted that Islamic finance not only promotes risk sharing, but also enables innovative approaches that benefit both Muslim and non-Muslim communities around the world.
“Such financial activities are critical to achieving sustainable development in many countries, especially in times of crisis. In countries such as Saudi Arabia, entrepreneurship is seen not just as an engine of progress, but also as a key element in achieving inclusive and sustainable growth. The Islamic Framework finance, with their emphasis on risk sharing, offer a framework for promoting development finance initiatives that are both sustainable and ethically sound,” he said.
Groff believes that creating an environment that fosters innovation and entrepreneurship is critical.
“Shariah-compliant financing options enable entrepreneurs to seize opportunities while respecting fundamental principles. Technological advancements have made financial services more accessible and ethical, which is in line with the values of Islamic finance. Products such as Sukuk are in line with sustainable development goals,” he said.
Groff added that another important aspect of financial progress is the integration of technology into finance and the impact that FinTech has in expanding access to financial products and services.
“As you all know, FinTech now plays a key role in ensuring inclusiveness of financial systems, and Islamic finance is no exception. Technological advances have led to the emergence of platforms that not only improve financial inclusion, but also support ethical standards, especially when combined with good structured products and services,” he said.
Groff noted that Islamic finance has great potential to develop ecosystems that promote entrepreneurship by focusing on economic activities within financial transactions. This, in turn, gives entrepreneurs the space they need to innovate and succeed, he added.
It should be noted that from April 27 to 30, the annual meetings and golden jubilee of the Islamic Development Bank Group (IDB) are being held in Riyadh (Saudi Arabia) under the royal patronage of the Custodian of the Two Holy Mosques, King of Saudi Arabia Salman bin Abdulaziz Al Saud.
The theme for the 2024 meetings is “Treasuring the Past, Charting the Future: Originality, Solidarity and Prosperity.” These meetings mark 50 years of the Bank’s activities to promote socio-economic development in member countries.
As part of the event, it is planned to hold a round table on the topic of COP29 with the participation of representatives of the Azerbaijani government.
The Group’s annual meetings and the golden jubilee of the IDB, which is the leading multilateral development bank for South-South cooperation, attract international and regional attention. The annual meetings include a series of side events with the participation of high-level representatives from government, international and regional organizations, the private sector, academia and civil society.
The events are attended by ministers of economy, planning and finance of 57 IDB member countries, as well as representatives of international and regional financial institutions, Islamic banks, private sector companies, national and international financial development institutions, international and regional organizations, NGOs, chambers of commerce and industry and business advice.
Subscribe to our WhatsApp channel and stay up to date with the main news!