Dubai, 5th December 2023.
- The Islamic finance sector is valued at over $4 trillion and spans prominent financial hubs across the globe, including London, Luxembourg, Dublin, Istanbul, Dubai, Bahrain, and Kuala Lumpur
- Responsible investing is rapidly growing and is projected to surpass $30 trillion by 2026
- With over 1.6bn Muslims globally ensuring all voices are included in addressing the “S” in ESG enables a more considered and relevant solutions
- Initiative builds on the Shariah-compliant model of Islamic finance, to develop a Tayibb-inspired approach with enhanced ESG and sustainability considerations
- Tayyib Secretariat, involving global Islamic finance experts, will develop Tayyib-inspired investment principles, open up new markets and inspire new investment products
- Tayyib Secretariat will help align Islamic finance with conventional ESG and impact investing, providing a voice for Islamic for Islamic finance in the mainstream sustainable finance sector
A pioneering finance initiative inspired by the Islamic concept of “Tayyib” (pure, wholesome, and impactful) has launched today at GEFI’s Unlocking Islamic Finance Summit, hosted by the Dubai International Finance Centre.
The announcement of the Tayyib Secretariat comes at a time when the eyes of the world are focused on Dubai as it hosts the UN’s 28th annual climate summit, COP28. The initiative, an output of a 1-year market assessment commissioned by UKIFC and GEFI last year, is seeking to build on the Shariah-compliant model of Islamic finance, to develop a Tayibb-inspired approach with enhanced ESG and sustainability considerations.
Using the principles within the Maqasid al-Shariah (objectives of Shariah) and Qawaid (Islamic legal maxims), the Tayyib approach has the potential to offer a new best practice approach to responsible investing.
The Tayyib Secretariat is a global collaboration involving Malaysia, UAE and the UK, UAE. The Secretariat will be co-managed by the UKIFC and ISRA Consulting with DIFC the Host Financial Centre and PwC Dubai Technical Partner. An Advisory Panel (representing shariah scholars, multilateral bodies, and select industry developmental stakeholders) and an Industry Consultation Group will be established to support the Secretariat.
The Tayyib Secretariat will be focusing on:
- Developing a set of investment principles inspired by Tayyib across select asset classes
- Supporting Islamic asset managers to access global ESG liquidity pools
- Inspiring new innovative ESG linked, Tayyib-inspired products
- Aligning Islamic finance with conventional ESG and impact investing
- Providing a voice for Islamic for Islamic finance in the mainstream sustainable finance sector
At the launch, GEFI Global Steering Group Chair Dame Susan Rice said: “With global growth in sustainable finance, it is an opportune moment for the Tayyib concept and the beautiful principles it encapsulates to come to the fore in Islamic finance.”
Leading global scholar Dr. Mohamed Ali Elgari added “I have no doubts that Islamic principles can have a positive impact in the global transition to a more sustainable and equitable economy. I urge the Islamic finance industry to embrace the opportunities that lie ahead and to work collaboratively in the ESG finance space to create a more sustainable future for all.