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The role of Islamic bond (sukuk) in green and sustainable Islamic finance: its connotation on social prosperity by realizing ESG

Abstract: Islamic finance offers a different route to meet the large funding requirements for sustainable development projects and activities in poor nations because of its social and moral ethos and asset-backed nature. Islamic finance and Environmental Social and Governance (ESG) investing often...

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Main Author: Mohammad, Habibullah
Format: Proceeding Paper
Language:English
English
English
English
Published: 2023
Subjects:
BPH104 Islam and poverty
BPH437 Sukuk - Islamic Bond
BPH72 Economic development. Growth. Sustainable development. Sustainability
Online Access:http://irep.iium.edu.my/107909/1/Poster%20Keynote%20India.jpeg
http://irep.iium.edu.my/107909/2/Keynote%20Speech%20%20ICMIT-23.pdf
http://irep.iium.edu.my/107909/3/Dr_Mohammad_Habibullah%20Invitation.PDF
http://irep.iium.edu.my/107909/4/Dr_Mohammad_Habibullah_ICMIT_2023.PDF
http://irep.iium.edu.my/107909/
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spelling my.iium.irep.1079092023-11-27T00:52:38Z http://irep.iium.edu.my/107909/ The role of Islamic bond (sukuk) in green and sustainable Islamic finance: its connotation on social prosperity by realizing ESG Mohammad, Habibullah BPH104 Islam and poverty BPH437 Sukuk - Islamic Bond BPH72 Economic development. Growth. Sustainable development. Sustainability Abstract: Islamic finance offers a different route to meet the large funding requirements for sustainable development projects and activities in poor nations because of its social and moral ethos and asset-backed nature. Islamic finance and Environmental Social and Governance (ESG) investing often share guiding principles, which makes them complementary as capital-raising and investment strategies. By adding a second layer of governance (Shari’ah) that guarantees the ring-fencing of issue profits and directs them toward projects that align with Shari’ah rules and ESG criteria, Islamic finance encourages sustainable development and is in line with those requirements. Promoting financial inclusion for individuals who might refrain from using the financial system due to ethical considerations or a lack of access, are two significant obstacles to escaping poverty. This study aims to demonstrate how it can draw in funds from sources now unexplored by traditional green and sustainable finance. Due to the fundamental principle of avoiding speculative and toxic financial products based on derivatives, generally full collateralization due to its asset-backed structure, and intimate ties to the actual economy, it can preserve sustainability and stability during financial crises. Proceeds from green, sustainability, and social bonds are meant to fund legitimate initiatives or assets that support particular goals. Even though these bonds are not always asset-backed or asset-based, the ESG bond framework creates a strong link between the capital raised and the issuer's underlying strategy and asset mix, which is consistent with the fundamentals of Islamic financing. In order to accomplish this goal, a systematic literature review methodology is used in this study to explore the fact that Green Sukuk (bonds) are currently being issued with the goal of funding environmentally friendly, climate-resilient, and sustainable growth. The market's organic growth, investors' growing interest in moral and ethical investing, the stringent capital requirements for infrastructure project financing, and the growing trend toward adopting green Sukuk (bonds) have all influenced this development. 2023-08-26 Proceeding Paper NonPeerReviewed application/pdf en http://irep.iium.edu.my/107909/1/Poster%20Keynote%20India.jpeg application/pdf en http://irep.iium.edu.my/107909/2/Keynote%20Speech%20%20ICMIT-23.pdf application/pdf en http://irep.iium.edu.my/107909/3/Dr_Mohammad_Habibullah%20Invitation.PDF application/pdf en http://irep.iium.edu.my/107909/4/Dr_Mohammad_Habibullah_ICMIT_2023.PDF Mohammad, Habibullah (2023) The role of Islamic bond (sukuk) in green and sustainable Islamic finance: its connotation on social prosperity by realizing ESG. In: International Conference on Management & IT, 25-26 August 2023, Canchipur, Imphal, Manipur, India. (Unpublished)
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
English
English
English
topic BPH104 Islam and poverty
BPH437 Sukuk - Islamic Bond
BPH72 Economic development. Growth. Sustainable development. Sustainability
spellingShingle BPH104 Islam and poverty
BPH437 Sukuk - Islamic Bond
BPH72 Economic development. Growth. Sustainable development. Sustainability
Mohammad, Habibullah
The role of Islamic bond (sukuk) in green and sustainable Islamic finance: its connotation on social prosperity by realizing ESG
description Abstract: Islamic finance offers a different route to meet the large funding requirements for sustainable development projects and activities in poor nations because of its social and moral ethos and asset-backed nature. Islamic finance and Environmental Social and Governance (ESG) investing often share guiding principles, which makes them complementary as capital-raising and investment strategies. By adding a second layer of governance (Shari’ah) that guarantees the ring-fencing of issue profits and directs them toward projects that align with Shari’ah rules and ESG criteria, Islamic finance encourages sustainable development and is in line with those requirements. Promoting financial inclusion for individuals who might refrain from using the financial system due to ethical considerations or a lack of access, are two significant obstacles to escaping poverty. This study aims to demonstrate how it can draw in funds from sources now unexplored by traditional green and sustainable finance. Due to the fundamental principle of avoiding speculative and toxic financial products based on derivatives, generally full collateralization due to its asset-backed structure, and intimate ties to the actual economy, it can preserve sustainability and stability during financial crises. Proceeds from green, sustainability, and social bonds are meant to fund legitimate initiatives or assets that support particular goals. Even though these bonds are not always asset-backed or asset-based, the ESG bond framework creates a strong link between the capital raised and the issuer's underlying strategy and asset mix, which is consistent with the fundamentals of Islamic financing. In order to accomplish this goal, a systematic literature review methodology is used in this study to explore the fact that Green Sukuk (bonds) are currently being issued with the goal of funding environmentally friendly, climate-resilient, and sustainable growth. The market's organic growth, investors' growing interest in moral and ethical investing, the stringent capital requirements for infrastructure project financing, and the growing trend toward adopting green Sukuk (bonds) have all influenced this development.
format Proceeding Paper
author Mohammad, Habibullah
author_facet Mohammad, Habibullah
author_sort Mohammad, Habibullah
title The role of Islamic bond (sukuk) in green and sustainable Islamic finance: its connotation on social prosperity by realizing ESG
title_short The role of Islamic bond (sukuk) in green and sustainable Islamic finance: its connotation on social prosperity by realizing ESG
title_full The role of Islamic bond (sukuk) in green and sustainable Islamic finance: its connotation on social prosperity by realizing ESG
title_fullStr The role of Islamic bond (sukuk) in green and sustainable Islamic finance: its connotation on social prosperity by realizing ESG
title_full_unstemmed The role of Islamic bond (sukuk) in green and sustainable Islamic finance: its connotation on social prosperity by realizing ESG
title_sort role of islamic bond (sukuk) in green and sustainable islamic finance: its connotation on social prosperity by realizing esg
publishDate 2023
url http://irep.iium.edu.my/107909/1/Poster%20Keynote%20India.jpeg
http://irep.iium.edu.my/107909/2/Keynote%20Speech%20%20ICMIT-23.pdf
http://irep.iium.edu.my/107909/3/Dr_Mohammad_Habibullah%20Invitation.PDF
http://irep.iium.edu.my/107909/4/Dr_Mohammad_Habibullah_ICMIT_2023.PDF
http://irep.iium.edu.my/107909/
_version_ 1783876103915438080
score 13.211869

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