1st Edition
Islamic Green Finance A Research Companion
This book argues that focusing on the green economy and green finance is essential to counteract the catastrophic, socio-economic effects of the COVID-19 pandemic. Further, while numerous research initiatives in the context of the green economy and/or finance have been observed in different parts of the world, to date, no comprehensive work has been published on the topic of green finance in relation to the discipline of Shari’ah. This timely book provides a comprehensive guide and offers practical solutions to the core issues of green finance within the principles of Maqasid al-Shari’ah.
It contends that Islamic green finance serves to promote global financial stability and mitigate the financial risks associated with climate change and environmental degradation: by integrating Islamic finance principles with sustainable and environmentally friendly practices; by encouraging ethical investments and prioritising long-term social and environmental benefits; and by redirecting capital towards sustainable projects and fostering a more sustainable and inclusive financial system. Islamic green finance’s emphasis on transparency, governance, risk-sharing, and responsible investing helps lessen systemic risks and supports the transition towards a more stable and sustainable global financial landscape. The book’s holistic approach to green finance in Maqasid al-Shari’ah aims to ensure that financial actions align with Islamic principles and help create a more sustainable and responsible economic system.
The book is a detailed reference, which sheds light on the pressing issues of our time. It encompasses various aspects of Islamic economics and serves as a guide to implementing green financing in accordance with Islamic principles and ethics, and as such, it will appeal to academics, researchers, students and policymakers alike.
List of Figures
List of Tables
Acknowledgement
Foreword
Preface
About the Editors
Contributors
Introduction
Part I Emergence of Islamic Green Finance
Chapter 1 Green Finance and Its Maqasid al-Shari’ah
Abdumajid Hassan Obaid, Saheed Abdullahi Busari & Deden Misbahudin Muayyad
Chapter 2 Islamic Banking Towards Sustainable Green Finance and Corporate Social Responsibility
Ashurov Sharofiddin, Fahd Mohammed Obad Al-Shaghdari, Habeebullah Zakariyah & Mohammad Habibullah
Chapter 3
Contributions of Islamic Green Finance to SDGs Normarianie Razali & Rusni Hassan
Chapter 4
SDGs and How Does Islamic Green Finance Matter? An Experience Naji Mansour Nomran, Razali Haron, Aghilasse Kashi, Abdelkader Laallam, Ala’ Azmi Abumughli, Zakir Hossen Shaikh & Venus Del Rosario Bunagan
Part II Impact Analysis of Islamic Green Finance
Chapter 5
Impact of Islamic Green Finance on the GDP: A Cross-Country Analysis Naji Mansour Nomran, Razali Haron, Aghilasse Kashi, Abdelkader Laallam, Ala’ Azmi Abumughli & Joji Abey
Chapter 6 Impact Analysis of Islamic Green Finance to Eco-Sustainability Syarah Syahira Mohd Yusoff & Farah Farhana Jauhari
Part III Governing Principles and Policies of Islamic Green Finance
Information Classification: General
Chapter 7 Divine Principles Governing Islamic Green Finance Fatimah Mohamad Noor & Rusni Hassan
Chapter 8 Fiqhi and Fatwa Rulings Governing Green Finance
Nur Farhah Mahadi, Saidatolakma Mohd Yunus & Maryam Batubara
Chapter 9 Law Reform Affecting Islamic Green Finance. How Does It Structure? Akhtarun Naba’ Billah
Part IV Investment Techniques in Islamic Green Finance
Chapter 10 Corporate Social Responsibility in the Islamic Green Economy
Romzie Rosman & Marziana Madah Marzuki
Chapter 11 Ethical Investing: How Does SRI Sukuk Effect on the Green Economy?
Nik Anis Idayu Nik Abdullah & Razali Haron
Chapter 12
Contributions of SRI Sukuk to SDGs: An Analysis of Selected Cases Souhaila Guedira, Mohamed Cherif El Amri & Mustafa Omar Mohammed
Part V Application of Islamic Green Finance
Chapter 13 Governments’ Initiative towards Islamic Green Finance Normarianie Razali, Ahmad Hafiz Abdul Aziz & Rusni Hassan
Chapter 14 Shari’ah Instruments Facilitate Islamic Green Finance Anwar Hasan Abdullah Othman & Razali Haron
Chapter 15 Awqaf Led-Green Finance: A Technical Know-how
Nor Razinah Mohd. Zain, Oumaima Tounchibine, Azman Mohd Noor & Houda Lechheb
Chapter 16 Empowering Green Waqf for An Effective Climate-Resilient Malaysia: Let’s Investigate Mohd Zaidi Md Zabri
Chapter 17 Green Sukuk: Issues, Challenges and the Way Forward
Siti Saffa’ & Syed Marwan
Chapter 18 Green Sukuk and Its Challenges Faced by Public Universities in Malaysia: An Empirical Study Norzitah Abdul Karim, Amirul Afif Muhamat, Nurhuda Nizar & Azhan Rashid Senawi
Chapter 19
Ethical Crowdfunding Led-Islamic Green Finance
Fahd Al-Shaghdari, Habeebullah Zakariyah, Tijjani Muhammad & Syarah Syahira Mohd Yusoff
Part VI Risk Management of Islamic Green Finance
Chapter 20 Risk Factors in Islamic Green Finance and a Corporate Solution Fahd Al-Shaghdari, Ashurov Sharofiddin & Habeebullah Zakariyah
Index
Biography
Mohd Ma’Sum Billah is a Senior Professor of Finance at the Islamic Economics Institute, King Abdul Aziz University (KAU), Jeddah, Kingdom of Saudi Arabia.
Rusni Hassan is a Professor and Dean at the IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia (IIUM), Selangor, Malaysia.Razali Haron is a Professor at the IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia (IIUM), Selangor, Malaysia.
Romzie Rosman is an Associate Professor at the IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia (IIUM), Selangor, Malaysia.
Hjh Akhtarun Naba’ Billah is pursuing her LLB (Hons) at the Ahmad Ibrahim Kulliyyah of Laws (AIKOL), International Islamic University Malaysia (IIUM), Selangor, Malaysia.
