Islamic finance is all about justice and equality

I was honoured to be invited to Kuala Lumpur to join the Global Islamic Finance Forum last week. Why? Because they had the Royal Sultan speak over dinner and the Prime Minister of Malaysia give a keynote speech? Yes but, more than this, I learned a lot. In particular, during my panel session, someone asked a question about how to balance technological progress with the principles of Islam which are social justice, inclusion and stewardship, and this was the essence of the whole week. How to make sure you have a financial system that is balanced between capitalism and fairness.

“Even if you understand Adam Smith’s ‘Wealth of Nations’, it is only fair to also read his other great work, ‘The Theory of Moral Sentiments’. Then, the whole understanding of economic development and capitalistic outlook can be at least be adjusted to understand some societal concerns that relate to the issue of inequality and justice.”

The Prime Minister Yab Dato’ Seri Anwar Ibrahim went on to say:

“If we confine ourselves purely to unbridled capitalism, most of our countries fail … [and we] would realize that the major concern in economic development is justice and equity.”

You can read the whole speech here: https://www.pmo.gov.my/en/speeches-en/special-address-and-officiation-by-yab-prime-minister-global-islamic-finance-forum-giff-2025/

His comments built on the speech of His Royal Highness, the Sultan of Perak, whose dinner I attended during the conference. Before the dinner, he made an impactful speech about what Islamic finance stands for.

“Islamic finance is built on timeless principles such as risk-sharing, fairness, transparency, and accountability.”

Today, Islamic finance is a $5 trillion business and growing fast but, as the Sultan made clear: “The triple bottom line — people, planet, and profit — must become central to our decision-making”.

You can read his speech here: https://www.sc.com.my/resources/speeches/address-at-the-global-islamic-finance-forum-royal-dinner-2025

What is interesting is that the global Islamic finance business is estimated to almost double in the next four years, with LSEG (the London Stock Exchange Group) estimating the market to be worth $9.2 trillion by 2029! This point was made by Governor Dato’ Seri Abdul Rasheed Ghaffour, the head of Bank Negara, Malaysia's central bank, in his opening speech. In that speech, he gave a five point plan, and I particularly liked his comment that:

“Through innovative integration of Islamic social finance with mainstream financial systems — we seek to chart a new frontier in finance where social purpose and commercial viability does converge”.

You can read his speech here: https://www.bnm.gov.my/-/spch-giff25-bm

The main themes were all around capitalism with inclusion or, as one of the banks branded their stand: “a rising tide lifts all boats”. It is a quote from John F. Kennedy in 1963, but was used by one of the Islamic banks on their booth to make the point that an uplift in the economy benefits everyone. So true! And this is the thing that the conference focused upon: use finance to benefit everyone.

These themes surprised me as many of the European and American conferences I attend have dropped ESG* and DEI** from the agenda, even though it had become something rising in the 2010s pre-COVID. Meantime, in Islamic finance, all of the conference seemed to be about ESG, financial inclusion and equality. This might surprise some people in our worlds of Europe and America, where ESG and DEI no longer matters. It matters a lot to those who are Muslim.

All in all, I had a lovely week in Malaysia and give huge respect to my hosts and those who looked after me and … for my inclusion.

 

* ESG stands for Environmental, Social, and Governance, a framework used to evaluate a company's impact and performance on non-financial, ethical, and sustainability issues. Investors use ESG criteria to assess a company's long-term risks and opportunities, influencing investment decisions by measuring its sustainability and ethical practices.

** DEI stands for Diversity, Equity, and Inclusion, a framework for creating environments where a wide range of people feel welcomed, valued, and supported. Diversity is about representation and includes differences in age, race, gender, and other characteristics. Equity focuses on providing fair opportunities and resources, recognizing that different people may need different support to achieve the same outcome. Inclusion is the practice of creating a culture where everyone's differences are respected and leveraged, leading to innovation and growth.