ESG to boost Islamic finance growth

Capital Markets

ISLAMIC capital markets will continue to grow in line with the global economy, but with a rising emphasis on environmental, social and governance (ESG) and climate change.

Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar (picture) said Islamic finance in substance is at its core sustainable finance as it is supported by a legitimate underlying transaction, formalised via a legitimate contract or ‘aqad’.

He said Shariah principles and ESG requirements have a common universe of values such as not encouraging speculation or activity harmful to mankind, society or the environment.