Research: number of ESG Shariah funds to increase in next two years

36% of Islamic Finance professionals expect a dramatic increase in the number of ESG Shariah funds.
73% said the current Islamic Finance market underserved the consistently rising demand for ESG.
The research was conducted by Maybank Islamic Berhad in collaboration with IslamicMarkets.com.

The number of investment funds that comply with both ESG and Shariah standards could increase sharply over the next two years, suggests a recent study by Maybank Islamic Berhad in collaboration with IslamicMarkets.com.

Non-Muslims will also be interested in such funds

The research intimates 36% of Islamic Finance professionals across several sectors expect a dramatic increase in the number of such funds. According to CEO Dato’ Mohamed Rafique Merican of Maybank Islamic:

49% of these experts see at least a slight increase in the number of ESG Shariah investment products in the coming years.

The need for a unified regulatory and legal framework

On the flip side, 73% of professionals said the current Islamic Finance market underserved the consistently rising demand for ESG. As per Shakeeb Saqlain – the chief executive of IslamicMarkets:

Just over half of them anticipate good progress on the aforementioned issue in the next two years.