Gatehouse Bank is looking to launch an additional financing product to existing customers to improve the energy efficiency of their homes this year. ISFI speaks to Andy Homer, the chief customer officer at Gatehouse Bank, to learn about how it works with its partners to develop Islamic sustainable products.

Ficus Capital is targeting to close its inaugural Islamic Southeast Asian Tech Fund in the third quarter of this year. ISFI speaks to Rina Neoh, the managing partner of Ficus Capital, to learn about some of the challenges of managing an inaugural fund as well as how the venture capital firm has shifted its focus toward sustainability.

Turkiye’s largest beet growers cooperative brand Kayseri Seker issued a TRY85 million (US$4.44 million) Sukuk in February 2022. The facility was the first Sukuk to use a quota of crystal sugar as an underlying asset and was also the first Sukuk issued by a cooperative in Turkiye. ISFI speaks to Dr Menevse Ozdemir Diliduzgun, the head of corporate finance and advisory at Halk Investment, and Ozgun Ozok, the managing partner of Ozok Law Firm, the legal advisor of the Sukuk, to learn more about this deal.

In a conversation with IFN Managing Editor Vineeta Tan, global finance pundit Andrew Sheng expounds on the ways we could move toward a more equitable and sustainable future including by investing in social enterprises and exploring Shariah compliant equity-based financial models as the current debt-based system is not sustainable.

With the upcoming COP28 to be held in a Muslim jurisdiction for the second year in a row, the spotlight is very much on the Islamic finance industry on how it can contribute to the global decarbonization efforts. ISFI speaks to Joe Clinton and Afsha Karim from Allen & Overy about some of the legal challenges Islamic financial institutions face in the green financing space.

ISFI speaks to Rizwan Hussein, CEO and managing director of Salaam Takaful, about the challenges of offering crop Takaful coverage as well as its plans for 2023.

Julian Hashim, Chief Regulatory Officer, Bursa Malaysia

Raja Amir Shah Raja Azwa, CEO, HSBC Amanah

ESG and sustainability continue to dominate issuer funding strategies. What is a realistic assessment of the instruments and routes on offer to Shariah compliant green issuers, from green bonds and Sukuk, to transition instruments, to sustainable and sustainability linked products? What are key strategic considerations for green bonds and Sukuk issuers: proceeds; process for project evaluation; management of proceeds; reporting; and external review. Why are these metrics so important to issuers and investors alike? With ESG and sustainability influence continuing to grow in the Islamic capital markets issuance, when will we see the enhanced measurement of impact? Do enough issuers engage independent third parties to measure and assess claims of sustainable, green and social credentials, and how can this be increased? How do we fund clean energy, sustainable activities and important concepts such as food security through an effective, liquid Islamic capital market?

What specific challenges face the Islamic, sustainable investor, and what opportunities? As an industry, how do we continue to widen our investor base through the development of appealing investment products that satisfy both ESG and Shariah compliance requirements? How do we capitalize on the green ambitions of Shariah compliant asset owners, institutional investors and investment managers, and take tangible steps to align investment portfolios with taxonomy driven sustainability goals? Can investment and credit portfolios be effectively stress-tested for climate risk, and how do investors satisfy disclosure and data reporting requirements? How can investors more accurately measure the impact of investments made, and what are investors now expecting from issuers in terms of ESG awareness, innovation and compliance? In a highly competitive market, how can investors effectively use ESG data and indices to accurately value portfolios and measure performance? We seek the views of an expert panel.

• How Islamic finance can contribute towards meeting sustainable development and climate goals

• Innovative Shariah-compliant sustainable finance products and solutions to facilitate transition to a greener and low-carbon economy

o Green financing – sustainability-linked financing, term financing, mortgages, hire-purchase, credit cards

o Capital Market – Green sukuk, sustainability linked sukuk, ESG Funds, ESG ETFs, FinTech

• Enhancing and leveraging on Islamic finance to ensure just transition

• Issues, challenges and priorities facing the financial sector in driving climate-related actions, alongside key impediments and gaps in the demand and supply of green solutions, products and services

• Facilitating collaboration between stakeholders, alongside enhancing Shariah-compliant and sustainable finance global thought leadership and capacity building capabilities, in advancing the climate agenda

Positioning ESG and Sustainable Finance and Investment - Policy, Regulation and Action (Session One)

Why is a united regulatory response to climate risk, such as that offered by JC3 and The Value-based Intermediation Financing and Investment Impact Assessment Framework (VBIAF), so important for the financial services industry as a whole? How do we evaluate initiatives designed to encourage investment and resource allocation into sustainable economic activity? How do we address the implications of various taxonomies, frameworks and standards, and identify what can now be labelled sustainable investments? Should taxonomies recognise and reflect market-specific regulations, and are we presenting a clear, consistent message? What industry-led measures would address and mitigate current challenges, such as greenwashing and inconsistent reporting standards? How can potential sustainability bond and Sukuk issuers successfully connect issuances to internal sustainability frameworks? Are there avenues to further capitalise on the synergies between sustainable finance and Islamic finance?

What are the global investment flows and trends that continue to influence the deployment of Shariah compliant capital in the UK today? What are recent significant developments in Shariah compliant private equity, and can we identify potential targets for private equity investment in the UK market? What are the latest opportunities and demands for Shariah compliant direct investment into the UK real estate markets? How significant is the private placement market in the UK Shariah compliant investment landscape? What structures are being employed to facilitate Shariah compliant investments in the UK, and what investment types and asset classes are in favor? Can we identify geopolitical events, international developments and transactions that may influence future investment trends, and what are other potential areas for the deployment of Shariah compliant capital in the UK market? We seek the views of an expert panel.

Moderator:

Mike Tirman, Partner, Ice Miller

Panelists:

Amir Firdaus, Partner, CFO, OFFA

Andy Thomson, Head of Real Estate, Bank of London & The Middle East

Dr Hurriyah El Islamy, Executive Board Member, Badan Pengelola Keuangan Haji (BPKH)

Moad Giebaly, Partner, Trowers & Hamlins

Dr Scott Levy, Founder, Al Waseelah

What represents innovation in the contemporary Islamic capital market: pioneering structures, sourcing underliers or the transition from ESG to impact? What options do hybrid or combination Sukuk offer issuers, particularly in asset-heavy industries, and why have such structures been so successful in the Gulf? How do Tier 1 and Tier 2 Sukuk offer financial institutions a flexible, efficient and user-friendly way of satisfying regulatory capital requirements, and what do perpetual Sukuk structures offer such issuers? What does the Bank of England Alternative Liquidity Facility offer financial institutions in terms of meeting regulatory requirements under Basel III prudential rules? What did the second sovereign Sukuk mean for Islamic finance in the UK, how was the deal structured and why was it successful? How has innovation been incorporated into Islamic project and infrastructure finance, particularly regarding concession agreements, cash contributions and investor protection? With ESG and sustainability continuing to grow in Islamic capital markets issuance, when will we see the measurement of impact? With the demise of LIBOR, is SOFR a good alternative for the Islamic capital market? We seek the views of an expert panel.

Moderator:

Dr Natalie Schoon, CEO, Redmoney Consulting

Panelists:

Ahsan Ali, Managing Director and Head, Islamic Origination, Standard Chartered Saadiq

Nitish Bhojnagarwala, Vice-President – Senior Credit Officer, Financial Institutions Group, Moody’s Investors Service

Safdar Alam, CEO, Maydan Capital

Shrey Kohli, Head of Debt Capital Markets and Product Origination, London Stock Exchange

How do policymakers balance the fulfillment of energy demands with the achievement of the principal goals of COP26? Why is a united regulatory response to climate risk so important for the financial services industry, and how do we evaluate initiatives that encourage investors to channel capital and resources into sustainable economic activity, climate transition and social responsibility? How do we address the implications of various taxonomies, frameworks and standards, and identify what can now be labeled green investments? How can potential green bond and Sukuk issuers effectively connect issuances to internal sustainability frameworks, and what is the likelihood of a UK sovereign green Sukuk? With ESG and sustainability continuing to grow in Islamic capital markets issuance, when will we see the measurement of impact? Are sufficient issuers engaging with independent, third parties to measure green, sustainable and social credentials? Can we further exploit the convergence of sustainable finance and Islamic finance, and develop suites of investment products that satisfy both criteria?

Moderator:

Hari Bhambra, Global Head of Compliance Solutions, Apex Group

Panelists:

Craig Reeves, Director and Founder, Prestige Funds

Abou Jallow, Senior Advisor to the CEO, International Islamic Trade Finance Corporation

Michael Rainey, Partner, King & Spalding

Sohail Ali, Partner, DLA Piper

Zalina Shamsudin, Head of International Programmes, Climate Bonds Initiative

The digitalization of Islamic financial services: what is working, what is viable and what is not? What do the answers to these questions mean for the evolution of UK Islamic financial services? What would assist domestic Islamic financial institutions in the further development of Islamic digital retail, wealth management, Takaful and pension offerings in the UK? What are notable milestones and achievements in the development of systems and software for Islamic banks and financial institutions and what technology is available to help financial institutions drive scale, integrity, efficiency and ultimately profitability? What opportunities are created by crowdfunding and peer-to-peer lending platforms for the joint ownership of Shariah compliant assets and investment projects in the UK? What does the growth of digital investment management platforms and robo-advisory mean for investment managers, and what new opportunities are available for Shariah compliant savers and investors? What are the potential uses and applications of digital assets in financial markets today, and how are these assets exchanged, listed and traded? Finally, does digitalization allow us to better address issues such as product authenticity and the minimization of uncertainty? We seek the views of an expert panel.

Moderator:

Vineeta Tan, Managing Editor, Islamic Finance news

Panelists:

Areeb Siddiqui, Founder and CEO, Kestrl

Hassan Daher, Founder and CEO, Qardus

Youness Abidou, Founder and CEO, Nester

We pose a series of high-level strategic questions to senior representatives of the UK Islamic financial services industry. What is Islamic finance’s response to a rapidly shifting macroeconomic environment, and will inflation lead to innovative Islamic financial solutions? What form and scale might this innovation take? How can UK Islamic finance and investment create a genuinely competitive advantage in key areas such as retail, commercial, corporate banking and wealth management? How are UK Islamic retail banks innovating customer acquisition and retention strategies, and how successful have these been? Are there inhibitions and limitations the Islamic financial services industry needs to acknowledge and overcome? Does Islamic finance want to become mainstream, or are we content with the alternative label? What’s working in financial technology, and who ultimately benefits: financial institutions, consumers or both? Is technology being fully utilized to address key customer concerns surrounding authenticity and the minimization of uncertainty? Having witnessed the growth of ESG and sustainable finance, on reflection, are there things Islamic finance could have done differently?

Moderator:

Stella Cox, Managing Director, DDCAP

Panelists:

Michael Rainey, Partner, King & Spalding

Dr Mohamed Damak, Senior Director, Global Head of Islamic Finance, S&P Global Ratings

Mohammed Paracha, Head of Middle East, Norton Rose Fulbright

Richard Thomas, Managing Director, Sustainable Economy

Dr Usman Chaudry, Chief Risk Officer and Executive Director of the Board, Gatehouse Bank

IFN Africa Dialogue 2022

•With ESG now driving financial innovation on the continent, what role will the symbiosis between Islamic finance and sustainable finance continue to play?

•How can financial institutions facilitate the development of financing and investment products that satisfy both green and Islamic credentials?

•With Sovereign Sukuk playing a leading role in African Islamic capital raising, what are the prospects for Islamic capital markets in Africa the coming year?

•What are investors seeking from Sukuk issuers in terms of innovation, structure, pricing and ratings, and what of other funding mechanisms such as syndicated lending and private placement?

•What is the evolution of Shariah compliant collective investment products available to investors, pension-holders and savers in Africa?

•With Africa as a favored existing investment destination, what are we seeing in the areas of Shariah compliant private equity and real estate investment, and are there further opportunities on the continent?

•With technology creating innovative Shariah compliant digital financial offerings what roles are being played by the new financial technology companies, as well as incumbent financial institutions?

•What products and business activities are still ripe for digital transformation in Africa and what of important activities such as microfinance?

•How will important ideas such as equity crowdfunding and peer-to-peer lending transform early and later stage Shariah compliant corporate funding, and what steps should regulators take to drive this exciting sector?

Moderator:

Abdulkader Thomas, Director, SHAPE Knowledge Services

Panelists:

Akeem Oyewale, CEO, Marble Capital

Dr Hassan Suleiman, Head of Economic Research and Policy Management, Securities and Exchange Commission, Nigeria

How are the key features of Oman Vision 2040 enabling growth of the Islamic banking and finance markets in Oman? How have successful regulatory initiatives contributed to Oman’s Islamic banking sector constituting more than 15% of the total banking market share? Will the new domestic Islamic banking landscape ultimately lead to enhanced product offerings and customer experience? Considering recent regulatory amendments to healthcare Takaful, how will the Omani Takaful sector continue to develop, and do Sukuk offer a viable funding route for Takaful companies? How will Shariah compliant financial technology, including the new crowdfunding platforms, further contribute to the transformation of the domestic financial services sector? Finally, now how significant will green and responsible finance be in the coming year for the domestic Islamic financial services sector?

Despite rising inflationary pressures and the threat of a global recession looming, Islamic funds and investment activities are picking up, according to Barry Cosgrave, a partner at legal firm Mayer Brown. Vineeta Tan speaks to Cosgrave to get a sense of how Islamic investors are behaving during this global downturn.

In an open discussion, we ask an expert panel to consider and highlight key points, ideas and initiatives, and how these can be put into action to drive Islamic sustainable finance and investment forward. As industry, what should be our next steps, and how should we measure the impact of what we are trying to achieve? What would represent meaningful goals and tangible achievements for the sector? How do we effectively position and market Islamic sustainable finance and investment? What financial products, across a wide range of asset classes will the next generation demand, and how can these demands be met?