IFFSA Awards 2024 Highlights Excellence and Innovation in Islamic Finance

What happens when the brightest minds in Islamic finance gather under one roof? The Islamic Finance Forum of South Asia (IFFSA) Awards 2024 answered that question with a showcase of groundbreaking ideas, bold initiatives, and well-deserved accolades. Held in the vibrant city of Colombo, Sri Lanka, this year’s event brought together industry leaders, financial experts, scholars, and stakeholders for a grand celebration of excellence and innovation in Islamic finance across South Asia. From award-winning institutions to fresh perspectives on the future of finance, IFFSA 2024 was more than just an awards ceremony — it was a glimpse into the next chapter of Islamic finance in the region.

A Showcase of Excellence and Recognition

The IFFSA Awards 2024 featured several notable winners from across South Asia. These awards recognized excellence in multiple categories, including banking, non-banking financial institutions (NBFIs), Sukuk issuances, and fintech. The event highlighted the region’s ongoing commitment to ethical finance and the innovative strides being made by Islamic financial institutions.

Here’s a look at some of the key award winners at the event:

• Orient Finance PLC: The Colombo-based NBFI secured five prestigious awards, including the Gold Award for Islamic Finance Entity of the Year 2023/2024 and the Gold Award for Islamic NBFI Window/Unit of the Year. Their consistent performance and commitment to Sharia-compliant financial products placed them at the forefront of South Asia’s Islamic finance industry.

• NDB Shareek: The Islamic banking arm of NDB Bank won multiple awards, notably the Gold Award for Islamic Banking Window/Unit of the Year and the Gold Award for Deal of the Year. Their recognition for Deal of the Year stemmed from a significant collaboration with a leading feed manufacturer in Sri Lanka, further solidifying their reputation as a leader in Islamic banking.

• Amāna Bank: As Sri Lanka’s first and only dedicated Islamic bank, Amāna Bank’s role in promoting ethical and Sharia-compliant banking in the country was celebrated at the IFFSA Awards. Their focus on financial inclusion and support for small and medium enterprises (SMEs) earned them well-deserved accolades.

The success of these financial institutions at the IFFSA Awards 2024 is a testament to the growing demand for Sharia-compliant financial products and services across South Asia.

The IFFSA Awards 2024 was not just about awards and recognition. The event highlighted several key milestones and major developments in South Asia’s Islamic finance sector. Some of the notable regional achievements included:

• Sri Lanka’s First Corporate Sukuk: One of the biggest announcements at the forum was Sri Lanka’s plan to issue its first corporate Sukuk. This move marks a significant shift in the country’s approach to raising funds through Sharia-compliant financial instruments. Sukuk is seen as a game-changer for Sri Lanka’s corporate sector, as it offers an alternative to traditional interest-based financing.

• Pakistan’s Journey to a Riba-Free Economy: Pakistan’s Constitutional amendment mandating the country’s transition to a Riba-free (interest-free) economy by January 2028 was also a focal point of discussion. Experts at the IFFSA Awards 2024 deliberated on the opportunities and challenges that lie ahead for Pakistan as it navigates this landmark financial transformation.

Digital Transformation in Islamic Finance

One of the most talked-about topics at this year’s forum was the role of digital transformation in Islamic finance. As the financial world becomes more digitized, Islamic financial institutions are looking to incorporate cutting-edge technologies like blockchain, artificial intelligence (AI), and digital banking.

Industry leaders and speakers at the IFFSA Awards 2024 emphasized the importance of enhancing customer experience, improving operational efficiency, and ensuring greater compliance with Sharia principles through the use of technology. Key insights included:

• Blockchain for Islamic Finance: Blockchain technology was highlighted as a key enabler of transparency and security in Islamic finance. By ensuring greater accountability and eliminating unnecessary intermediaries, blockchain is set to revolutionize areas such as Sukuk issuance and trade finance.

• Digital Banking Platforms: Islamic banks are increasingly adopting mobile banking and digital payment solutions. These platforms allow for real-time transactions, seamless fund transfers, and better financial inclusion, especially for underbanked communities.

Another major theme at the IFFSA Awards 2024 was the concept of Value-Based Intermediation (VBI), which originated in Malaysia. VBI seeks to promote ethical, transparent, and sustainable finance, aligning financial objectives with the broader goals of societal well-being.

Speakers at the event stressed the need for the South Asian Islamic finance industry to embrace VBI to ensure sustainability and social impact. With global concerns about sustainability and ethical finance on the rise, VBI offers a clear path for Islamic banks to support inclusive growth and sustainability initiatives.

Challenges for Islamic Finance Forum of South Asia

Despite the remarkable progress made in South Asia’s Islamic finance sector, certain challenges remain. The forum addressed some of these obstacles while also highlighting the opportunities that lie ahead. Key issues discussed included:

• Financial Inclusion: One of the core goals of Islamic finance is financial inclusion. Several panelists at the IFFSA Awards discussed the importance of providing greater access to Sharia-compliant financial products for unbanked and underserved populations.

• Regulatory Reforms: The need for a strong regulatory framework to support the growth of Islamic finance was a major talking point. Consistent, transparent regulations are crucial to ensuring investor confidence and attracting international capital.

• Green and Sustainable Finance: Islamic finance’s focus on ethical investing aligns well with the global push for green finance. Stakeholders discussed the growing interest in Islamic green Sukuk as a means to finance environmentally friendly infrastructure projects.

As South Asia’s Islamic finance industry continues to evolve, the IFFSA Awards 2024 provided a clear glimpse into the future. The emphasis on ethical banking, digital transformation, and financial inclusion highlights the industry’s priorities.

Countries like Sri Lanka and Pakistan are taking bold steps, with initiatives such as corporate Sukuk and Riba-free economies, respectively. Digitalization, blockchain adoption, and the growing focus on Value-Based Intermediaries (VBI) are expected to be the main drivers of growth.

With new challenges also come new opportunities. As Islamic financial institutions continue to innovate and expand their portfolios, South Asia’s role in the global Islamic finance industry will likely strengthen. Cross-border collaborations and knowledge-sharing platforms like the IFFSA Awards will continue to play a crucial role in shaping the industry’s future.

The Islamic Finance Forum of South Asia (IFFSA) Awards 2024 was more than just a celebration of excellence. It was a platform for introspection, strategy, and innovation. As institutions and individuals continue to make their mark on the Islamic finance industry, the awards serve as a reminder of the sector’s potential to drive ethical, inclusive, and sustainable growth in South Asia and beyond.

With industry pioneers like Orient Finance PLC, NDB Shareek, and Amāna Bank raising the bar, South Asia’s Islamic finance sector is poised for exponential growth. The IFFSA Awards 2024 showcased the transformative potential of digitalization, ethical banking, and sustainable finance. As key players continue to embrace digital transformation, leverage blockchain technology, and adopt value-based intermediation (VBI), the future of Islamic finance in the region looks more promising than ever.

This year’s event underscored the growing importance of Sharia-compliant financial solutions in driving financial inclusion, fostering cross-border collaboration, and supporting sustainable development. With continuous innovation, regulatory support, and a shared commitment to ethical finance, South Asia’s Islamic finance industry is set to become a global force, shaping the future of responsible finance for years to come.