S&P: Shariah-Based Instruments to Help Muslim Majority Countries to Overcome the Effects of COVID-19

S&P Global Ratings (S&P) has identified Zakat, social Sukuk, Waqf and Qard Hassan as key instruments that can help Islamic countries overcome the effects of the COVID-19 pandemic. S&P noted that the pandemic has significantly slowed Islamic countries due to their governments' measures to curb the spread of the pandemic, whilst unemployment levels have increased due to the fall in revenues experienced by many companies in these countries.

Highlighting the global emphasis on a more sustainable, stakeholder-focused, and socially responsible financial system for the future, S&P identified similarities between Sustainable finance and Islamic finance. According to the rating agency, the social aspect of Islamic...