albaraka Bank Egypt: a leader in Islamic finance
Stemming from its belief in the importance of tackling climate change and securing a sustainable future, albaraka Bank Egypt is taking part in COP27 this November, and will lead two envisioning panels which focus on the role the banking sector can play to stimulate sustainable, green and climate-positive growth
Fresh off a corporate restructuring and optimistic about its growth and the role it can play in helping Egypt achieve a more digital and sustainable future, albaraka Bank announced its participation in the proceedings of COP27 hosted by Egypt in November. Given the enormous financing demands of dealing with climate change, Islamic finance has untapped potential as a significant and non-traditional source of financing for Social Development Goals. Throughout two extensive panels, albaraka Bank will take a deeper look at how Islamic finance can help to positively impact climate change and how to establish a holistic perspective on this expanding role. It also aims to build an assessment of all prospective features, selecting the most appropriate financial models that can raise the role of the bank as an impactful contributor to economic growth, green transitioning, and social welfare in emerging markets.
“African countries have hardly contributed to climate change and have not gained as much from carbon-intensive industrialization, but they are expected to be affected more by its consequences than Northern countries,” said Hazem Hegazy, CEO & Vice Chairman of albaraka Bank Egypt. “This has an impact on the African agricultural economy. Having said that, COP27 is an opportunity to attract funding and investments that are headed in the right direction. This year, Egypt's presidency for COP is very critical given it is innately a developing, African, and Middle Eastern country hosting the summit. It will be able to influence agenda issues and draw attention to Africa’s growing need for adaptation and mitigation funding,” he added.
Hegazy also highlighted that Egypt's Vision 2030 focuses on eight national goals that align with the United Nations SDGS and the Sustainable Development Strategy for Africa. Of course, banks play an important role in economic development by offering solutions and expanding access to funding for projects with a social ROI, such as those that improve citizens' quality of life.
Mr. Hegazy reiterated that albaraka Bank is collaborating with the government to realize its vision of economic development and adequate reforms. “The albaraka bank serves Shariaa’ compliant products and services, and our guiding philosophy translates to "development of the land." We do not lend money to earn interest; rather, we lend money to develop the land and assist in the prosperity of the country. In this light, our objective is to better finance societies. We aim to create real value through finance, which is why we are participating in COP27, and we are involved in a number of projects that complement Egypt's 2030 vision, particularly those related to manufacturing and industrial growth,” Hegazy commented.