The French government is collaborating with the IsDB Group to explore green Sukuk opportunities for sustainable funding and support the country’s net-zero target.
During a meeting between IsDB President Dr Muhammad Al Jasser and Director-General of the French Treasury Emmanuel Moulin, the parties discussed the potential of green Sukuk as a powerful instrument in sustainable finance, recognizing the importance of building resilience and strengthening communities, economies and institutions to address global challenges effectively.
“Aligned with the Paris Agreement, IsDB Group demonstrates its commitment to promoting resilience, poverty alleviation and climate action. This collaboration marks a significant stride towards a greener future,” the IsDB said in an official LinkedIn post.
“The collaboration between IsDB and the French Treasury serves as a testament to their joint commitment to further sustainable finance and a greener future. By working together, we aim to create lasting positive change and contribute towards achieving the SDGs,” the IsDB added.
Separately, the IsDB also held a meeting with French financial market regulator The Autorite des Marches Financiers (AMF) to explore avenues for boosting financial inclusion through the implementation of Islamic finance in IsDB member countries.
Dr Muhammad highlighted the IsDB’s significant work in Francophone countries, particularly in Africa, where sustainable development is being actively spearheaded.
“Through its commitment to Islamic finance, IsDB promotes a values-based financing system that prioritizes sustainability, diversification and the potential for unlocking a new investor base,” the IsDB said.
According to the IsDB, the integration of Islamic finance in its member countries not only expands the range of financial choices available but also ensures that financial inclusion is enhanced. “By offering Islamic finance alongside conventional options, IsDB enables its member countries to establish frameworks for Islamic finance, Sukuk and Takaful. These frameworks operate in tandem with conventional finance, providing additional opportunities and paving the way for increased financial inclusivity,” it added.
France has had several collaborations with the IsDB Group over the years. In February 2020, the IsDB held a meeting with the International Financial Institutions Council of the Movement of the Enterprises of France as well as delegates from 25 French business organizations in Paris to discuss ways to strengthen the partnership with French institutions supporting the achievement of the UN SDGs in developing countries, particularly in Africa.
The IsDB also offers support to the Muslim community in France, having provided contributions of over US$3 million since 1998 to launch schools in Lille, Lyon, Marseille and Paris. Around 25.8 million Muslims live in Europe, of which around five million are estimated to be living in France.