Jakarta, Indonesia, 16 May 2016 – A synthesis of a new report on Islamic finance was released Monday by the Islamic Development Bank (IsDB) Group and the World Bank Group.

The full report, titled Islamic Finance: A Catalyst for Shared Prosperity?, will be launched in October this year during the Annual Meetings of the Boards of Governors of the International Monetary Fund and the World Bank Group. The synthesis provides an overview of the main report, its objectives and scope, and a summary of its policy recommendations.

Prof. Mohamed Azmi Omar, Director General of the Islamic Research and Training Institute (IRTI), an autonomous member of IsDB, released the synthesis today at the 11th IsDB Global Forum on Islamic Finance. The forum, organized by IRTI and Bank Indonesia in conjunction with the 41st Annual Meeting of the Board of Governors of IsDB, focused on the role Islamic finance can play in achieving the Sustainable Development Goals.
Prof. Omar said the full report describes the theoretical foundation of Islamic finance and shared prosperity, reviews recent trends in Islamic finance, and identifies policy tools that can leverage Islamic finance to curb poverty and foster equitable wealth distribution.
Key recommendations include:

• Developing adequate policy interventions and financial infrastructure to enable Islamic finance to serve as a catalyst for poverty
alleviation and inclusive prosperity
• Creating a level playing field for debt and equity instruments by allowing tax-free transfer of assets in asset-backed Sukuk
• Having Islamic non-bank financial institutions provide Islamic financial services in countries where establishing Islamic banks is not
possible due to legal and regulatory restrictions
• Establishing institutions and governance systems to support orderly function of the Islamic social finance sector

Prof. Omar said the IsDB Group and the World Bank Group collaborated on the report to produce a comprehensive document that will serve as a useful guide for all industry stakeholders.

IRTI is responsible for leading the development and sustenance of a dynamic and comprehensive Islamic financial services industry that supports socio-economic development in member countries. For more information contact Mohamed Salat: msalat@isdb.org