Green investment and sustainable development:The case of Islamic finance
Amer Al-Roubaie, Adel M. Sarea
Published Online: June 2019
Reflecting on the impact of human activities on future sustainability has intensified the debate about the environment in recent years. Green investment, also called ethical investment, is considered as a vehicle that strengthens environmental management and sustainable development. In the Islamic economy, investment has to comply with principles of Shariah to administer justice with all stakeholders, protect the environment and sustain the development process. The paper sheds light on the Islamic financial system as a manifestation of the Islamic worldview which endorses ethical investment as a path for environmental management and human survival. Green investment provides an important solution for ensuring environmental protection and meeting people’s basic needs. It also increases efficacy of the society’s resources. Islamic finance could play a major role in environmental management by ensuring that green investment sustains growth and supports innovation. Increase in issuance of Islamic investment instruments like Green Sukuk in recent years is recognition of the importance of the environment in the Islamic economy. The paper contributes to our understanding about the role that the Shariah’s plays in sustaining development and fostering economic growth.
Green investment, the environment, Islamic finance, Ethical investment, Sustainable development. .