Islamic Development Bank (IsDB) and the UN launched an initiative to assist finance recovery efforts as the world fights against COVID-19 pandemic, Tunis Afrique Presse reports.
“At a time when the global health and economic crisis have pushed millions of people into extreme poverty, Islamic social financing has the potential to provide urgently needed support for poverty alleviation, economic recovery, pandemic response, and sustainable development,” the IsDB said.
The initiative includes the International Dialogue on the Role of Islamic Social Financing in Achieving the SDGs.
“As the world comes to terms with the evident fragility of our socioeconomic systems, the tools of Islamic social financing provide an opportunity to usher in much needed resilience,” said IsDB President Bandar Hajjar, highlighting the significance of the International Dialogue on the role of Islamic social financing.
“I am confident that zakat, sadaqa, waqf and Islamic microfinance can help bring a grass-roots, inclusive and more resilient approach to development, and I look forward to working with our partners at the UN to meet pressing needs and achieve the SDGs,” he added.
The latest UN economic forecast envisions that the economic recovery remains instable amid surging COVID-19 cases and lagging vaccination in poorer countries, widening inequalities and setting back further progress on the SDGs.
“We believe that Islamic social financing, itself built on the principles of fairness and justice, can open pathways to stimulate economic activity and promote social welfare, financial inclusion and shared prosperity,» said Ms. Rola Dashti, the Executive Secretary of the UN Economic and Social Commission for Western Asia.
“Using the modern tools of the Fourth Industrial Revolution, including blockchain, fintech and artificial intelligence, we can better manage zakat, awqaf and Islamic microfinance,” she added.
Dashta called for exploring the possibility of establishing a regional zakat, waqf and sadaqa fund to support instant emergency relief for the most vulnerable and longer-term poverty eradication.