‘ISLAMIC FINANCE CAN HELP U.N. GOALS’
Its principles can make positive difference in facing global crises, says Sultan Nazrin
ISLAMIC finance principles can help ensure the success of United Nations’ (UN) Sustainable Development Goals (SDGs) on eradicating poverty and ensuring prosperity worldwide, Sultan of Perak Sultan Nazrin Muizzuddin Shah said.
Sultan Nazrin said the central principles of traditional Islamic finance, such as responsibility, sustainability and generosity, enhanced with finance technology, or fintech, could make a positive difference in facing global crises.
In his address at Bank Negara Malaysia’s Syariah Advisory Council 20th anniversary dinner, Sultan Nazrin said the expansion of Islamic tools of zakat, waqf collection, sukuk bonds and takaful insurance could be implemented to promote the 17 SDGs provided by UN since September 2015.
“Islamic finance is in a unique position for it to play a part with the existence of the SDGs by the UN to end poverty and ensuring prosperity.
“It is also seen as an alternative method to tackle deficits and to establish new ways for humanitarian funding, which has received interest from the International Federation of of Red Cross and Red Crescent Societies.
“As an economic system, it advocates risk sharing, equitable wealth distribution and fairness in all transactions. It also encourages entrepreneurship, promotes real economic development and supports long-term sustainability.
“It was found by syariah scholars that the SDGs are aligned with findings in the Quran, that it highlights the importance of food, water, safety and security. For example, the second SDG aims to achieve zero hunger, which was mentioned in the Quran with ‘At-Ammahun Min Jun’ (Food to ward off hunger) and ‘Wa Amannahum Min Hauf’ (safety to ward off fear). These phrases resonates clearly with the UN’s SDGs.
“Malaysia has paved the way for sukuk, especially the green sukuk, which was first issued here in a collaboration between Malaysia’s central bank and the Securities Commission and together with the World Bank. Hopefully, this will be the much-needed catalyst
for starting the contribution to the SDGs,” he said.
Sultan Nazrin said the traditional structures of Islamic finance had a long history in providing support and contributing to Islamic nations, and that could be implemented at a global scale.
He said the Syariah Advisory Council played a vital role in ensuring that Islamic principles followed the spiritual and moral ideas of Islamic trade and finance.