Sustainable finance is presently experiencing a surge in popularity within the financial arena. This approach seeks to harmonize the profit-seeking motives of the financial industry with the urgent environmental and social issues that afflict our planet, cementing a symbiotic bond that enriches investors and society.

Shariah-compliant finance is based on ethical and social responsibility principles, offering unique investment opportunities that align with sustainability principles. Sukuk, for instance, provide a low-risk, fixed-income investment option that pays a profit rate based on the return generated by the underlying asset.

Despite the potential benefits, the Islamic finance market has faced obstacles in its development. Governments have been slow to promote the industry, and a lack of regulation has hindered its growth. Furthermore, many consumers remain unaware of the benefits of sustainable investing.

Sustainable finance is a crucial area of investment, and Shariah-compliant finance has the potential to play a significant role in advancing this field.

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#100daysoflearning Day 019

Originally published on My LinkedIn on March 2, 2023.