Editorial

Abstract

In the Name of Allah, Most Gracious, Most Merciful. One of the recurring discussions about Islamic finance deliberates on the way forward for the industry. The objective is to spread the Islamic finance proposition as a preferred mode of banking and finance beyond traditional markets so that it grows as a universal alternative system of financial intermediation over time. To achieve this objective, efforts are geared at two levels:

1. 
   
   

   embedding sustainability in the core Islamic finance business model by leveraging on its ethical principles so that it represents a unique, value-driven, stable and resilient system of finance; and

   
   
   


2. 
   
   

   mobilising Islamic finance to spur inclusive growth and socio-economic and environmental sustainability of societies.

   
   
   

On the first front, different concepts of sustainability have been advanced as models of growth and development, including the following two streams: environmental, socially responsible and Islamic investing; and value-based intermediation. Now the talk is about democratisation of sustainability through Islamic finance within communities. On the second aspect, a shift in discussions is already happening on the opportunities for the Islamic finance industry in the emerging concept of “blue economy”, after having promoted the “green economy” initiatives.