Text of the recorded remarks by Prof. Bambang Brodjonegoro, Dean and CEO, Asian Development Bank, for the Panel Session on Development Traps and Islamic Finance, during the 20th IsDB Global Forum on Islamic Finance, 17 June 2026 It is a true honor to address this forum, even if only by video. I extend my sincere …
Keynote speech delivered by Engr. Adeeb Yousuf Al Aama, Chief Executive Officer, International Islamic Trade Finance Corporation (ITFC), during the 20th IsDB Global Forum on Islamic Finance, in Baku, Azerbaijan, on 17 June 2026 It is both an honour and a privilege to address you today at the 20th IsDB Global Forum on Islamic Finance, …
Islamic financing is not a panacea for the middle-income trap, but has a more modest enabling role. Where coupled with appropriate policies, reliable institutions and adequately prepared projects, it may contribute to bridging the transition from factors-driven to productivity led convergence through financing of productive infrastructure, enterprises development and innovation and human capital formation. Why …
Artificial intelligence now appears in almost every development discussion. In Member Countries of the Islamic Development Bank (IsDB), it is usually presented as part of the answer to familiar challenges: low productivity, weak service delivery, financial exclusion, and institutional capacity gaps. That is understandable. But the phrase “affordable AI” can easily become too broad to …
The Covid-19 crisis caused a major economic slowdown worldwide. We need to mitigate the slowdown in a sustainable manner that not only provides short term stimulus, but also supports long-term growth, fairly distributed across the globe. Moreover, there are major challenges facing the financing of the Sustainable Development Goals (SDGs). This proposal aims to formulate …
“Blockchain technology is going to change everything”. This claim was made many times over the past several years in many different forms. And we are still waiting to see the change. Skeptics, like Jesse Fredrik, argue that blockchain is a solution in search of a problem. The technology is yet to prove itself and deliver on …
Cryptocurrencies are causing measurable disruptions in the finance world. The speculative nature of many of these currencies casts doubts on their economic value and their role in improving the prosperity of the lives of human beings. But the underlying technology, the blockchain technology and the cryptographic techniques, are obviously of immense potential. The question, however, …
Detective Gregory: Is there any other point to which you would wish to draw my attention? Sherlock Holmes: To the curious incident of the dog in the night-time. Detective Gregory: The dog did nothing in the night-time. Sherlock Holmes: That was the curious incident! The Adventure of Silver Blaze There is something curious about …
We cannot afford to keep stumbling from one crisis to the next — Angela Merkel (2009) The title of this article is the title of a speech delivered in the wake of the Global Financial Crisis of 2008 by former European Central Bank President Jean-Claude Trichet. Although his call was made 14 years ago, it seems as relevant today …
Introduction In 2003, African Union Member Countries committed themselves to ending hunger in Africa by 2025, later known as the Maputo Declaration. With two years remaining, this blog focuses on the performance of IsDB Sub-Saharan Africa Member Countries (IsDB SSA MCs). To achieve the goal of ending hunger, the declaration’s primary aim was to allocate …
The world is heating up even quicker than expected. Temperature records continue to be broken in 2024, with droughts, wildfires and extreme heat affecting more vulnerable people and communities around the world. In developing countries, where the impacts of climate change are felt most severely, the vast majority of people, jobs and property are not insured. …
The most well-known historical episode of resource scarcity occurred in Egypt during the time of Prophet Yusuf (peace be upon him). The King of Egypt had a dream in which seven fat cows were devoured by seven skinny ones, and seven green ears of corn were accompanied by seven dry ones (The Quran, 12:43-49). This …
Introduction Throughout history, expansive oceans have served as viable trade routes, facilitating the interconnectedness and exchange of cultures among nations through the movement of goods and intellectual interchanges. The revolutionary introduction of containerized shipping in 1956 laid the groundwork for the profound integration of global economies, culminating in the phenomenon we now describe as globalization. …
Nobel laureate Joseph Stiglitz once remarked that debt financing without bankruptcy is like Hamlet without the Prince. Or, to borrow from our culture, it is like Qais without Laila! Bankruptcy is not a minor footnote in the story of modern finance — it is a central character in debt financing, shaping incentives, costs, and risks for both private and public …
The Takaful industry, grounded in mutual assistance, shared responsibility, and ethical finance, stands at a transformative crossroads. Driven by artificial intelligence (AI) and blockchain, a new model of takaful, often referred to as TakafulTech, is emerging to enhance transparency, efficiency, and community governance. These technologies automate insurance processes while reinforcing Takaful’s original social and ethical …
1. Introduction Since 2020, the global economy has been grappling with overlapping crises, reversing gains in poverty alleviation and macroeconomic stability. In particular, the 2022 surge in food and energy prices, triggered by the conflict in Eastern Europe, intensified inflationary pressures worldwide. Despite signs of monetary easing amid heightened policy uncertainty, consumer prices remain elevated …
Senegal is confronting a severe public debt challenge, the most acute in its recent economic history, following a decade characterized by rapid debt accumulation, exceptionally high public investment, and persistently large fiscal deficits. Without decisive and timely corrective measures, Senegal faces heightened rollover and liquidity risks, with potential spillovers across the West African Economic and …
The global economy is entering a new and more uncertain era. After enduring the shocks of the pandemic, supply chain disruptions, and volatile financial markets, the world now faces risks that extend far beyond the normal business cycle. Geopolitical risk, the possibility that political tensions, conflicts, or diplomatic frictions disrupt economic activity, and geoeconomic fragmentation, …
Introduction Takāful[1] is presented as a mutual, Sharīʿa-compliant alternative to commercial insurance, legitimized by mid-20th-century scholarly deliberations that endorsed mutual insurance, permissible. The first takāful company, founded in Sudan in 1979[2], introduced a hybrid structure combining mutualist principles with joint-stock frameworks: unlike traditional mutual insurers, where members are both insured and co-owners, takāful companies separate …
A Historic Institution at Crossroads The concept of Waqf—a perpetual charitable endowment under Islamic law—is an established legacy of social justice. ‘Waqf’ originates from the Arabic root Waqafa (to stop or hold), signifying the permanent dedication of property for religious or charitable purposes. Once declared as Waqf, the property becomes inalienable—it cannot be sold, inherited, or gifted. …
Blockchain technology is famously considered a “trust machine”. It is a machine (a set of code and procedures) that will make transactions reliable without the need to trust any particular person. In other words, the blockchain replaces trust of persons with trust of computational systems. But there is a little problem. What makes the machine …
There is a wealth of writings on the shortcomings of mainstream, neoclassical economics. But there is yet to emerge a coherent framework for an alternative economic paradigm. The COVID-19 crisis is an opportunity to address this matter in fresh light This short article is an attempt to outline one such a framework. What is Different …
Inflation is a major problem for modern economies. Over the years, the problem shifted from one extreme to the other: from “the great inflation” in the 1960s and 1970s, to “the death of inflation” and “inflation myth” in the 1990s and 2000s, to the “deflation monster” in 2010s, and most recently, to “the biggest inflation …
Money is at the heart of any financial system. It is the “joints” that link markets across space and time. As long as money performs its functions, markets tend to allocate resources efficiently and allow participants to be more productive and therefore more prosperous. As money is a prerequisite for the normal functioning of markets, …
Introduction While the political and security-related challenges in West Africa have risen recently, the political turmoil that unfolded in Niger in July 2023 has raised more significant attention and concern globally. Niger’s strategic location at the intersection of North, West, and Central Africa (Figure 1), its mineral resources and its vast land of 1,267,000 km² …
Introduction In 2003, African Union Member Countries committed themselves to ending hunger in Africa by 2025, later known as the Maputo Declaration. With two years remaining, this blog focuses on the performance of IsDB Sub-Saharan Africa Member Countries (IsDB SSA MCs). To achieve the goal of ending hunger, the declaration’s primary aim was to allocate …
Ideas generate knowledge, research develops and shapes it. But what we choose to explore is often subjective. Hence it is important what questions we ask and how we formulate them. I want to present six points for what matters in setting the direction of research in Islamic economics and finance. The purpose here is not …
Introduction The surge in inflation that followed the recovery from the 2020 global recession has prompted monetary tightening in several advanced economies (AEs) and emerging market and developing economies (EMDEs), which exacerbates the challenges of sustainable development financing. Against this backdrop, debt situations in developing countries have continued deteriorating over the past decade. More than …
We cannot afford to keep stumbling from one crisis to the next — Angela Merkel (2009) The title of this article is the title of a speech delivered in the wake of the Global Financial Crisis of 2008 by former European Central Bank President Jean-Claude Trichet. Although his call was made 14 years ago, it seems as relevant today …
Introduction Over the past few decades, Islamic finance has gained significant recognition as a viable alternative to conventional finance. In the early 2000s, the estimated value of Islamic finance assets was roughly USD 200 billion. Despite facing various financial crises, the industry has seen remarkable growth and is now valued at USD 3.25 trillion as …
The debt burden on developing countries is significant and debt servicing in this post-COVID-19 and war-torn era is difficult. Therefore, policymakers, as well as multilateral institutions are already quite concerned about the current debt vulnerabilities worldwide. Debt was already excessively high before the first COVID-19 lockdown and then the Ukrainian war is currently adding more …
Introduction While poverty is generally measured using a monetary basis, it is widely acknowledged that poverty is characterized by multiple dimensions beyond income poverty. This blog post compares the various multidimensional measures of poverty and finds that some of the gains in poverty eradication in the previous decades are likely lost due to the COVID-19 …
Introduction BRIC is an acronym for Brazil, Russia, India, and China that was coined in 2001 by Jim O’Neill, the then Chief Economist of Goldman Sachs, to reflect the combined growing influence of these four countries in the contemporary global economic disposition as they are projected to attain absolute group dominance in the global economy …
Introduction The global economy and the international financial system have been rattled by crises of varying sources since the start of the new millennium – from the bursting of the dot-com bubble in the early 2000s to the 2007-2009 global financial crisis. Over the past couple of years, the effects of the devastating COVID-19 pandemic, …
Introduction For decades, the mounting debt burdens of developing countries were often a “silent crisis” — a growing yet largely overlooked threat undermining economic stability and long-term development. Today, this silence has been shattered. The escalating costs of debt servicing, coupled with shrinking fiscal space and limited access to affordable financing, are pushing many nations …
Riba, or usury, has existed for millennia and will likely persist for many more. Does that make it “sustainable”? Is the persistence of a certain behavior or phenomenon sufficient to consider it sustainable? Mere persistence cannot imply sustainability. Poverty, disease, and wars persist throughout history. But that does not make them sustainable. There must be …
Introduction The Islamic Development Bank Institute (IsDBI) celebrates the first year of the International Journal of Islamic Finance and Sustainable Development (IJIFSD), launched in September 2024 in collaboration with the International Center for Education in Islamic Finance (INCEIF) University, Malaysia. IJIFSD builds on the International Shari’ah Research Academy (ISRA) International Journal of Islamic Finance (IJIF), …
At a recent meeting of the Islamic Development Bank (IsDB) in Algiers, I had the wonderful opportunity to meet Dr. Sami Al-Suwailem, who is the current Acting Director General of the IsDB Institute. Among other matters related to the World Zakah and Waqf Forum, I had the opportunity to relate my connection with IsDB/IsDBI. He …
“Iqtiṣād”(1908–1913), the First Islamic Economics Magazine: A Rediscovered Legacy of the Tatar Muslims Senior Islamic Finance Specialist, IsDB Institute 1. Introduction The development of Islamic finance in Russia is often viewed through weak contemporary initiatives and shy legal reforms. Yet, its foundations trace back to earlier intellectual and institutional efforts by Muslim Tatar scholars during …
Once upon a time, an elderly master and his apprentices dedicated themselves to mastering the ancient art of “dragon slaying” at their academy. One fateful day, a dreadful monster descended upon their land, terrorizing the helpless villagers, setting their homes ablaze, and devouring their grazing cattle. The people named this fearsome beast “the dragon.”Summoned by …
Central Asia is home to a rich and varied heritage that has been shaped over thousands of years, encompassing ancient civilizations, the Silk Road period, and beyond. Often described as the crossroads of civilizations (Frye, 2012), Central Asia’s diverse heritage is a result of its strategic location along the Silk Road. This extensive region, which …
Introduction The permissibility of insurance in Islam has sparked extensive scholarly debate. The early discussions drew a decisive line between commercial insurance—considered unlawful—and mutual insurance, deemed permissible. This opinion, now predominant, stems from rigorous collective inquiry by Muslim jurists, who concluded that only the mutualist model aligned with Islamic principles. However, this debate took place …
Despite the impressive growth of the global ṣukūk market, which has reached USD850 billion outstanding by 2023 and more than USD180 billion issuance in 2023, concerns remain about its compliance with Sharīʿah principles and ethical objectives. The main criticism is the dominance of debt-based sukuk structures such as murābaḥah and ijārah, which replicate the features …
A translated and abridged version of the Arabic article titled: نحو دعم الجهود لتنمية الموارد المائية ومقاومة التغيرات المناخية The development of water resources and the fight against climate change are among the most topical global issues today. These issues directly impact economic and social stability, particularly in vulnerable regions. Addressing them requires coordinated efforts …
Bambang Susantono, Member, Board of Trustees of IsDB Institute Knowledge management enables communities to thrive in dynamic and unpredictable environments, serving as a catalyst for continuous adaptation and growth. However, its full potential is realized only when supported by robust technology, agile workflows, accountable governance, and a collaborative mindset that breaks down silos. To fully …
Excerpts from remarks delivered by H.E. Mr. Rashid Zayid Al Ghassani during the 44th Islamic Financial Services Board (IFSB) Council Meeting, Djibouti City, Djibouti, on 2 July 2024. I am grateful to the IFSB Secretary General, Mr. Ghiath Sabsigh, for inviting me to share some thoughts at this Tour De Table session of the IFSB …
Translated from an Arabic article titled: نحو حشد موارد مالية متنوعة للتمويل الأصغر The current global and regional economic landscape presents a challenge and heightened risks for small and emerging businesses. These challenges extend to the institutions that finance them, underscoring the urgent need for innovative solutions to mobilize financial resources—especially amid intense competition from …
This is the concluding segment of a three-part report exploring digital financial inclusion in Egypt. You can find the second part here. Introduction Financial technology (Fintech) denotes the cutting-edge technologies transforming traditional financial services. Fintech involves the automation of financial service delivery, empowering financial service providers, businesses, and consumers to streamline their financial operations through …
This article is the second in a three-part report on digital financial inclusion in Egypt. Read the first part here. Introduction As urbanization accelerates, the income disparity between urban and rural residents has become one of the common issues in the development stages of many countries. Given the centrality of rural residents’ income to this …
Introduction On 28th August 2023, a Bloomberg article reported that energy subsidies in Saudi Arabia amounted to US$7,000 per capita on energy subsidies – the highest among the Group of 20 Economies The portrayal of energy subsidies in Saudi Arabia needs to be put in perspective. This blog examines the subsidy issue more comprehensively and …
On 24 August 2023, during a summit in Johannesburg, South Africa, BRICS announced the admission of six new members. The BRICS summit came at a time when countries all over the world are trying to deal with a changing geopolitical landscape that challenges the dominance of the West. Seeking more political and economic influence in …
Introduction Small and medium-sized enterprises (SMEs) are vital in promoting economic growth, accounting for 90% of businesses, providing 60 to 70% of employment, and contributing 50% of the world’s GDP (World Bank). They are the backbone of societies worldwide, supporting livelihoods, especially among the working poor, women, youth, and vulnerable groups. With the proper support, …
Introduction Egypt has a growing population of more than 100 million, an increase of more than 7 million since the 2017 census. With this population growth, the country faces significant development challenges as its large and growing population is unbanked and underserved in financial services. Hence, Egypt exerts more efforts to promote and deliver affordable …
Introduction The collapse of Silicon Valley Bank (SVB) and Signature Bank on 8-10 March 2023 has triggered deep financial turmoil in the US and prompted financial and monetary authorities to intervene to swiftly avert a contagion. SVB specialized in providing finance and banking services to venture-backed start-ups, most of which are technology firms. It was …
IntroductionInflation may be defined as the decline of purchasing power of a determined currency over time. It also determines the erosion of living standards. Inflation may be measured by the Consumer Price Index (CPI), a quantitative estimate of the inflation that may be captured in the rise of an average price level of a basket …
Islamic banks had shown stability during the global financial crisis compared to conventional banks. This is attributed to the difference in design and philosophy of the two bank types. Do Islamic banks also show superior stability in the wake of systemic risk? Analysis of the COVID-19 period provides an opportunity to assess the impact of …
Introduction Climate change is a systemic risk for the whole world. Due to the growing frequency and intensity of extreme weather events, developing countries are increasingly exposed to the effects of climate change. By 2030, climate change has the potential to push up to 132 million people into extreme poverty, making it more difficult for …
Introduction Semiconductors, commonly known as chips, are crucial parts of our daily lives. In every electronic device we use, from smartphones to computers and automobiles to coffee machines, chips constitute one of the most critical components. Chips are packed with thousands or billions of transistors on a piece of small, coin-sized silicon or germanium. They …
Introduction The global economy is slowly recovering from the COVID-19 crisis, but the path to broad-based recovery is uncertain, with growth prospects diverging widely between advanced and developing countries. Many developing economies have been hit harder by the pandemic than advanced economies. Millions have been pushed into poverty, and food insecurity has sharply risen significantly …
Beyond the lack of financial resources, delivery failures are among the main causes of poor public services in developing countries. The incapacity of states in developing countries to perform and to complete tasks entrusted to them is what Andrews et al. (2016) termed as “capability trap”. Their study shows that most developing countries suffer from …
The Kingdom of Saudi Arabia, being the largest Islamic finance market globally in economies with dual financial systems (comprising both conventional and Islamic financial sectors) is poised to become a global leader in the Islamic financial services industry. This is one of the key messages that is conveyed by the first detailed analysis of Islamic …
In a nutshell Covid-19 exacerbates inequalities and pre-existing socioeconomic disparities, thereby threatening the stability of many countriesInequalities’ transmission factors include education, job exposure to infections, job availability, housing, transportation and safety netsSupporting the income of disadvantaged households and boosting job supply should be the priority. Impact finance and philanthropic funds, such as zakah and waqf, …
The world of learning and education is changing. The Covid-19 pandemic has had an unprecedented impact on organizations, individuals, economies and societies. Universities, educational institutes, and learning providers have had to respond to a rapidly evolving landscape, changing how and where they operate, as well as reconsidering the services they offer (CIPD, 2020). Education and …
Pandemics are Game Changers Pandemics, big wars, revolutions, and catastrophic natural disasters have been the game changers and the responsible factors in creating new world order throughout history. They brought about major changes through which the pre- and post-event worlds became very different. The coronavirus pandemic is fast becoming one of those world-changing events. The …
The World FinTech Report 2020, from consulting firm Capgemini and non-profit organization Efma, is published this year in quite extraordinary circumstances, given the coronavirus epidemic and the related economic consequences, caused mainly by the lockdowns around the world. The report stresses that “the harsh reality is that FinTechs have moved ‘from disruption to reality,’ and …
Amidst the current coronavirus pandemic, compassion, solidarity and selflessness have stood out to become the values that unite humanity across the globe, irrespective of nations, ethnic backgrounds and religions. The principles of Islamic economics and finance have the natural ingredients to be at the vanguard to put those values in place; although on the level …
This is a summary of the main points of the Arabic blog article on the role of Islamic social finance safety nets in mitigating the effects of the Covid-19 crisis. The main points of the full article are as follows: First: The Role of Social Finance Safety Nets in Mitigating the Effects of the Crisis …
An unprecedented economic situation… Most economists refer to the 2008 global financial crisis to assess the economic impact of the Covid-19 pandemic. They suggest that in terms of magnitude the impact of Covid-19 would be like or even bigger than that of the financial crisis. However, in terms of nature, there is a consensus that …
