Muscat: Islamic finance must leverage three key drivers-climate action, digital inclusion, and Islamic innovation-to serve a higher purpose for Malaysia, Oman, and the rest of the world, said Securities Commission (SC) chairman Datuk Mohammad Faiz Azmi. He emphasized that finance should transcend mere profit-making, highlighting strategic approaches like SC’s Maqasid Al-Shariah Guidance for the Islamic Capital Market Malaysia, released in 2023, and Oman’s Vision 2040.
According to BERNAMA News Agency, Mohammad Faiz stressed that improving climate resilience and adaptation is no longer optional. Malaysia has made significant strides by securing a 2.8 million euro grant from the Green Climate Fund to develop the National Adaptation Plan (MyNAP) earlier this year. ‘After Malaysia’s devastating floods in 2021, which caused RM6.1 billion in losses, this has become a national priority,’ he noted in his keynote address at the Islamic Finance News (IFN) Oman Forum 2025 in Muscat, Oman.
Mohammad Faiz highlighted Oman’s Blue Carbon initiative, with its 100 million mangroves, and the Wadi Dayqah Dam, which safeguards water supply and flood control for Muscat and Qurayyat, as inspiring examples of climate action.
Regarding digital inclusion, the SC chairman noted that Islamic fintech in Malaysia is thriving, with the industry valued at US$13 billion in 2024 and projected to almost double by 2028. He underscored that the objective is for digital tools and solutions to deliver inclusion, particularly for retail investors, underserved communities, and micro, small, and medium enterprises.
On Islamic innovation, Mohammad Faiz explained that Islamic finance has thrived by offering alternatives, such as sukuk instead of bonds and takaful instead of insurance. He suggested pioneering impact-linked sukuk that reward social outcomes, structuring tokenized Islamic social funds, and embedding Maqasid-based disclosures that tie growth to justice, dignity, and stewardship.
Mohammad Faiz concluded that Oman, Malaysia, and the broader community have the opportunity to build an Islamic market ecosystem that not only progresses but also uplifts societies and protects the planet for future generations.