LONDON (Sept 10): Islamic finance has the potential to bridge the critical funding gap needed for the transition to a more sustainable and resilient future, said the Sultan of Perak, Sultan Nazrin Shah.

Nazrin, who is also the Royal Patron of Malaysia's Islamic Finance Initiative, said Islamic finance, rooted in ethical practices, fairness and equitable risk-sharing, provides a framework aligned with sustainability and presents diverse funding options, including blended and social finance.

“It (Islamic finance) is well-positioned to address funding gaps that impede global progress and can serve as a tool for channelling resources where they are needed most," the Perak ruler said in his keynote address at the Malaysia International Islamic Financial Centre-United Kingdom Business Forum 2024.

Citing the latest United Nations (UN) Sustainable Development Goals (SDG) report, he said that the UN estimated that nearly US$4 trillion (RM17.36 trillion) of annual inflow is needed to achieve the 2030 Agenda for Sustainable Development in developing countries and US$9.2 trillion in annual average spending on physical assets is required to achieve net-zero emissions by 2050.

Established in 2015, the SDGs outline 17 global goals aimed at creating a better, more sustainable and more equitable future.

Key objectives include upholding human rights, achieving gender equality, empowering women and girls, eradicating poverty and ending hunger worldwide.

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