\n
In a major step toward harmonizing Islamic finance with global sustainability goals, the AlBaraka Forum for Islamic Economy has joined forces with Spectreco, a global provider of ESG analytics and sustainability intelligence, to unveil a pioneering AI-enabled, Shariah-compliant ESG Index\u2014scheduled for launch in June 2025 in Istanbul.<\/p>\n
The announcement was made during the 45th AlBaraka Islamic Economics Symposium in Madinah, where thought leaders, scholars, and industry professionals gathered to explore the future of ethical finance. The newly developed index bridges Islamic financial principles (Maqasid al-Shariah) with internationally recognized ESG frameworks, offering a next-generation benchmark for values-driven investment.<\/p>\n
Faraz Khan MBE, CEO of Spectreco, commented:
\n\u201cWe\u2019re creating a transformative tool that fuses tradition with advanced technology. This index will help institutions in the Islamic world meet the growing demand for sustainable and principled investing, with Saudi Arabia leading the regional charge.\u201d<\/p>\n
The index applies robust Shariah-compliant screening\u2014excluding impermissible sectors and evaluating financial ratios\u2014alongside real-time, AI-powered ESG analysis. Built to meet increasing regulatory requirements, the platform offers transparency, traceability, and compliance support across multiple jurisdictions.<\/p>\n
Sheikh Yousef Hassan Khalawi, Secretary-General of the AlBaraka Forum, added:
\n\u201cThis is more than a product\u2014it is a vision for the future of Islamic finance. As global finance turns toward sustainability, this index ensures our ethical values remain at the forefront of innovation.\u201d<\/p>\n
Initial rollouts will focus on Saudi Arabia, the wider GCC, Southeast Asia, and select European markets\u2014regions already seeing accelerated ESG mandates and a surge in interest for Islamic financial solutions that meet international benchmarks.<\/p>\n
Khan noted that Spectreco\u2019s platform offers an end-to-end sustainability intelligence system, integrating ESG risk metrics and compliance frameworks through a seamless, AI-supported interface designed specifically for Islamic financial institutions.<\/p>\n
\u201cSustainability is no longer optional\u2014it\u2019s embedded in capital flows and regulatory frameworks. This index empowers Islamic economies to lead, rather than follow, in this transition,\u201d Khan said.<\/p>\n
According to Sheikh Khalawi, the Islamic economy is poised to reach $7 trillion by 2028, yet the Islamic finance sector still comprises less than 5% of global financial assets. He believes the index will catalyze the creation of new, innovative products that satisfy both Shariah and global ESG requirements.<\/p>\n
\u201cWe envision a truly global tool\u2014from Southeast Asia to West Africa\u2014that brings Islamic finance into full alignment with today\u2019s sustainability agenda,\u201d he stated. \u201cThis initiative is a bold step toward a more ethical, equitable, and resilient financial future.\u201d<\/p>\n
With countries like Pakistan actively transitioning to full Shariah compliance by 2027, and ESG reporting becoming a regulatory imperative across key markets, the launch of this index positions Islamic finance to meet the evolving needs of global investors and regulators\u00a0alike.<\/p>\n","protected":false},"excerpt":{"rendered":"
In a major step toward harmonizing Islamic finance with global sustainability goals, the AlBaraka Forum for Islamic Economy has joined forces with Spectreco, a global provider of ESG analytics and sustainability intelligence, to unveil a pioneering AI-enabled, Shariah-compliant ESG Index\u2014scheduled for launch in June 2025 in Istanbul. The announcement was made during the 45th AlBaraka<\/p>\n","protected":false},"author":10,"featured_media":7609,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-7608","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-english-news"},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/investn24.com\/index.php?rest_route=\/wp\/v2\/posts\/7608","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/investn24.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/investn24.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/investn24.com\/index.php?rest_route=\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/investn24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7608"}],"version-history":[{"count":1,"href":"https:\/\/investn24.com\/index.php?rest_route=\/wp\/v2\/posts\/7608\/revisions"}],"predecessor-version":[{"id":7611,"href":"https:\/\/investn24.com\/index.php?rest_route=\/wp\/v2\/posts\/7608\/revisions\/7611"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/investn24.com\/index.php?rest_route=\/wp\/v2\/media\/7609"}],"wp:attachment":[{"href":"https:\/\/investn24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/investn24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/investn24.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}