Islamic Finance Has Significant Global Growth Potential in Tandem with Rising ESG: Bursa Malaysia Chairman

Islamic finance has significant potential to grow worldwide in line with the growing global movement towards environmental, social and corporate governance (ESG), given their similarities. According to Tan Sri Abdul Wahid Omar, Chairman of Bursa Malaysia, who was speaking at the virtual 2021 Asia-Pacific Summit held on the 22nd of September 2021, the relationship of ESG is complementary and not competitive to Islamic finance, and when ESG gains traction, so will Islamic finance.

Why it Matters?

Abdul Wahid stated that instruments that meet Shariah principles also meet ESG requirements due to their similar criteria, which includes legitimate underlying transactions that are not speculative in nature and do not harm mankind, society and the environment...