CGS-CIMB Securities CEO Ruzi Rani Ajith tells The Edge Singapore that global investors are increasingly aware of the synergy between ESG investments and Islamic finance, which prohibits interest. Islamic loans are also structured using discounts, sale or lease, profit participation or repurchase agreements. This contributes to the growing demand for Shariah-compliant (or a service that complies with the principles of Islamic law) financing as investors seek greater portfolio diversification and an alternative to funding in traditional ESG.
Islamic finance is enjoying renewed impetus amid ESG growth. Industry players here are collaborating to grow this sector beyond the periphery.
The demand for Islamic finance products and services has seen expanding uptake as investors gravitate towards the megatrend of environmental, social and governance (ESG) investing, leading to a resurgence of new offerings in the former’s space.
