From Compliance to Impact: A Next Generation of Islamic Investment

Impact investing is an exciting and large-scale opportunity for the Islamic investment industry. In many ways, the transition “from compliance to impact” represents a next generation for the industry to enhance its relevance, expand its scale, and demonstrate its authenticity.

This article offers four observations on this strategic transition:

There is a journey from compliance to impact;Impact investing is best suited for certain contexts;Impact investing requires an expansion of capabilities; andThe potential rewards of impact investment for the Islamic investment industry are tremendous.

1. There is a journey from compliance to impact

The roots of the Islamic investment industry are in providing Shariah-compliant alternatives to c...