• Recitation of the verses from the Holy Quran

• Keynote address:

• Conference patron’s keynote address:

• Keynote address:

• Special speech:

• Special speech:

• Welcome address: Mr. Omar Mustafa Ansari, Secretary General, AAOIFI, Kingdom of Bahrain

• Token of appreciation for guests of honour and sponsors of the conference

• Agreements / MOUs signing ceremony

Celebrating IsDB’s golden jubilee: Contribution to developing sustainable
economic, financial and social systems of member countries

This interview explores IsDB’s influential role over the past 50 years in improving the lives
of the Muslim people by advancing sustainable economic, financial and social systems and
practices across its member countries. The session will cover IsDB’s strategic approaches,
spotlight successful initiatives and discuss innovative projects that have made a significant
impact. Additionally, future directions and strategies will be discussed to ensure continued
success for IsDB and its member countries.

The fragmented and siloed nature of the Islamic finance sector presents notable
challenges in advancing a cohesive and thriving Halal economy. Currently, Islamic financial
institutions are perceived to concentrate disproportionately in financing and investing
in the conventional corporate sector (which is agnostic to Islamic finance in nature), the
government securities and certain other traditional investment and financing avenues.
Hence, such Islamic finance offerings are often disconnected from real economy sectors,
limiting their impact and creating inefficiencies in resource allocation. This lack of
integration impedes the growth of Halal sectors—such as food and beverages, fashion,
media and recreation, pharmaceutical and travel and tourism—and complicates efforts to
establish a unified framework for the Halal economy.

This session will focus on how Islamic finance can be strategically leveraged to support
and expand Halal sectors by shifting investments from corporate sector and traditional
avenues of investment and financing into core Halal industries (including startups, SMEs
and agriculture sectors). Additionally, the session will discuss the roles that regulators,
businesses and consumers can play in contributing to and benefiting from this transition,
thereby fostering a sustainable and resilient Halal economy.

Main topics

• Scope and components of a Halal economy, including its relationship with Islamic finance

• The importance of having Halal standards alongside Islamic finance standards

• Strategies for integrating Islamic finance into diverse economic sectors

• Regulatory reforms necessary to support and advance a cohesive Halal economy

• Utilising technology and digital solutions to streamline and expedite the integration process

Food security remains a pressing issue at a global scale, and particularly in certain Muslim-
majority countries, where the reliance on high-cost food imports undermines efforts to

achieve self-sufficiency and resilience. The current supply chains are often fragmented and
inefficient, exacerbated by a disconnect between Islamic finance and the agricultural and
food production sectors. This lack of integration limits the ability to develop sustainable,
locally or regionally driven solutions.
This session aims to explore strategic uses of Islamic finance in building resilient supply
chains primarily through investment in Muslim-majority countries regionally that prioritises
food security. Drawing from real-world case studies and expert insights, the session will
examine how Islamic finance can strengthen supply chain infrastructure, promote equitable
access to agricultural inputs and financing and encourage sustainable farming and food
processing methods. It will also highlight the crucial roles of policymakers, regulators and
other stakeholders in creating an enabling environment for this integration.

Main topics

• Challenges within current food supply chains in Muslim-majority countries and the limitations posed by conventional financing methods

• Strategies for integrating Islamic finance principles into the agricultural and food production sectors to enhance resiliency and sustainability

• The role of Islamic social and commercial microfinance instruments in supporting food security initiatives and promoting sustainable agriculture

• Need for collateral management and electronic warehousing setups to support and streamline the food supply chains

• The role of technology and digitalisation in enhancing supply chain transparency and traceability

• The importance of collaboration between financial institutions, agribusinesses andpolicymakers in advancing food security and sustainable practices

• Ensuring equitable access to financing and resources for smallholder farmers to boost their participation in the food supply chain

• Potential of multinational Islamic financial institutions in initiating strategic relationship between stakeholders in their respective jurisdictions

Muslim-majority countries face escalating economic challenges exacerbated by geopolitical
tensions, market volatility and the enduring effects of the disruptions created by the
COVID-19 pandemic. Conventional financial systems have frequently fallen short in
addressing the needs of struggling economies and supporting vulnerable or marginalised
communities. This session will examine the transformative potential of Islamic social finance
instruments such as Zakah, Waqf and Qard Hasan, in revitalising Muslim economies during
these difficult economic times.
Islamic social finance offers a unique approach to economic revitalisation by mobilising
resources for sustainable development while upholding ethical investment practices centred
on social justice and community solidarity. These instruments provide a framework where
economic resilience is closely linked with social welfare, enabling local communities to
better withstand economic shocks and enhance self-sufficiency. The session will explore how
integrating Islamic social finance with Islamic finance can facilitate a shift toward a more
equitable and resilient economic systems, enhancing overall stability and sustainability.

Main topics

• The role of Islamic social finance in supporting vulnerable communities and micro, small and medium enterprises (MSMEs) during economic crisis, addressing high levels of poverty, unemployment and income inequity

• Innovations in digital and technology-based solutions for Islamic social finance to drive economic revitalisation

• Leveraging Waqf endowments for infrastructure development and essential social services, and using Qard Hasan as a catalyst for financial inclusion and entrepreneurial empowerment, particularly at the micro financing level

• Strategies for scaling and institutionalising Islamic social finance through supportive regulatory frameworks and policies and capacity building initiatives for stakeholders

• Collaborative approaches involving public, private and civil society sectors to enhance the effectiveness and reach of Islamic social finance initiatives

• Identifying and addressing the challenges and limitations faced by Islamic social finance in achieving its goals

As the Islamic finance industry continues to expand globally, both horizontally and
vertically, a growing number of conventional financial institutions and even some Muslimmajority countries are converting their operations and their economies to be Shari’ah
compliant. However, this conversion process, whether at the institutional or at the national
level, has proven to be complex and fraught with challenges.
The lack of clear guidance and resources has made the conversion process slow, uncertain
and challenging. Successful conversion requires a multifaceted approach that addresses
political, economic, financial, legal and social considerations from strategic, technical and
operational perspectives. Crucially, this endeavour necessitates the active involvement
and alignment of all relevant stakeholders, including policymakers, regulators, financial
institutions, businesses and public at large. This session aims to provide a comprehensive
understanding of the multifaceted challenges and opportunities involved in the conversion
process, and strategies for overcoming those challenges, both at the institutional and the
national economies levels.

Main topics

• Development of Islamic fiscal and monetary policies, including the establishment of

  Shariah-compliant benchmark rates

• Converting international borrowing to Shariah compliant modes

• Developing financial instruments and markets that cater to the financing needs of the

  real economy in Islamic capital markets

• Enhancement of financial inclusion and innovation through the adoption of Islamic

  FinTech solutions

• Incorporation of Islamic social finance instruments such as Zakat, Waqf and Qard Hasan

  into the broader economic framework

• Alignment of the transformation process with the overarching framework of Maqasid Al

  Shariah

Islamic finance has the potential to significantly advance sustainability by adhering to
the principles of Maqasid Al Shariah, which, inter alia, emphasise economic, social and
environmental well-being. AAOIFI has consistently embedded these principles in its
standards and is now committed to developing dedicated governance and accounting
standards / disclosure guidelines specifically focused on sustainability. This session will
delve into AAOIFI’s strategic roadmap, which includes the declaration signed with IFSB and
CIBAFI at the COP28 event, spearheaded by the Central Bank of UAE, underscoring a unified
commitment to fostering sustainability in Islamic finance.
The session will explore both the strategies and challenges for integrating Maqasid Al Shariah
into the core operations of Islamic financial institutions, particularly regarding sustainability principles. The panel discussion will address the unique needs, requirements and expectations
of Islamic finance stakeholders and the obstacles to implement sustainability standards
specifically in the areas of governance and accounting. Additionally, collaborative efforts and
future directions for promoting sustainability in Islamic finance will also be explored.

Main topics

• Integration of Maqasid Al Shariah into sustainability practices in Islamic finance

• Relevance and adequacy of standards issued by International Sustainability Standards Board (ISSB) for Islamic finance

• Unique need and expectations of Islamic finance stakeholders regarding sustainability

• Challenges and solutions for embedding sustainability within the Islamic finance framework

• Implications of insights from the Islamic finance infrastructure bodies’ declaration at COP28

• Practical strategies for implementing sustainability standards in Islamic finance

• Future directions and collaborative opportunities for advancing sustainability in Islamic finance

The increasing systemic significance of conventional financial institutions offering Islamic
financial services has highlighted the need for robust governance, compliance and reporting
mechanisms. Over the past decade, these institutions have become key players in significant
Islamic finance markets, a trend expected to continue. Nevertheless, there is an opportunity
to further strengthen the alignment of their Islamic financial services with established
Shari’ah principles and rules and enhance the transparency of their presentations.
The session will explore the dynamics of Islamic finance windows, the need for enhanced
governance and the importance of clear financial reporting. The goal is to ensure that
these windows operate transparently and maintain stakeholders’ trust.

 Main Topics:

• The role of participatory financing in sustainable economic development

• Governance frameworks for ensuring Shari’ah compliance in participatory financing

• Accounting and financial reporting challenges and solutions in managing participatory financing instruments

• Innovations in participatory financing instruments to drive economic growth

• Risk management strategies for participatory financing

• Collaborative approaches to overcoming governance and accounting challenges inparticipatory financing

Participatory financing holds immense potential for driving sustainable economic
development. These financing mechanisms not only promote economic growth but also
ensure equitable wealth distribution and social justice. Additionally, these participatory
structures encourage and enable risk-sharing capital availability and hence enhance the
capability for entrepreneurship. However, the effective implementation and scaling of
participatory financing face significant governance and accounting challenges that need to
be addressed to fully harness their potential.
This session will explore the strategic role of participatory financing in sustainable economic
development, focusing on the governance and accounting frameworks required to support
these instruments. The discussion will delve into the complexities of ensuring compliance
with Shari’ah principles and rules, maintaining transparency and managing risk while
ensuring appropriate financial reporting. Additionally, the session will highlight innovative
practices and collaborative strategies to overcome these challenges, drawing on insights
from industry experts and case studies.

Main topics:

• The role of participatory financing in sustainable economic development

• Governance frameworks for ensuring Shari’ah compliance in participatory financing

• Accounting and financial reporting challenges and solutions in managing participatory

  financing instruments

• Innovations in participatory financing instruments to drive economic growth

• Risk management strategies for participatory financing

• Collaborative approaches to overcoming governance and accounting challenges in

  participatory financing