Saudi Fund Governor Highlights Islamic Finance’s Capacity to Nurture Ecosystems

In a compelling address at the 18th Islamic Development Bank Global Forum on Islamic Finance, Dr. Stephen Groff, Governor of the National Development Fund of Saudi Arabia, highlighted the transformative power of Islamic finance. His speech, a cornerstone of the IsDB’s annual meetings and Golden Jubilee celebrations in Riyadh focused on “Islamic Finance Has Remarkable Capacity To Nurture Ecosystems – Governor of Saudi National Development Fund.” This underscored the sector’s pivotal role in promoting ethical and sustainable growth, mainly through risk-sharing and entrepreneurial support.

Dr. Groff emphasized that Islamic finance is uniquely positioned to drive sustainable development across diverse communities worldwide during stable times and in crises. He argued that in places like Saudi Arabia, entrepreneurship is more than a progress driver; it’s integral to achieving comprehensive and sustainable growth. The principles of Islamic finance support these entrepreneurial ventures by providing a foundation that is both sustainable and ethically sound, thus fostering an environment ripe for innovation and economic advancement.

Adding to the importance of this financial framework, Dr. Groff pointed out the synergistic relationship between Islamic finance and modern technological advancements. The rise of financial technology, or FinTech, has revolutionized access to financial services, making them more inclusive and aligned with Islamic ethical standards. Innovations such as Sukuk, Islamic financial certificates, mirror sustainable development goals, further integrating ethical considerations into financial strategies.

The forum also explored how technological integration in finance, primarily through FinTech, expands access to financial products and services while maintaining high ethical standards. This is crucial for creating ecosystems that support entrepreneurship, where economic activities within financial transactions give entrepreneurs the necessary space to innovate and excel.

The 2024 Annual Meetings, celebrated under the theme “Cherishing our Past, Charting our Future: Originality, Solidarity, and Prosperity,” mark the 50th anniversary of the IsDB’s efforts to foster socio-economic development across its member countries. This event, held under the royal patronage of King Salman Bin Abdulaziz Al-Saud, featured discussions on various topics, including a roundtable on COP29 with Azerbaijani government representatives, emphasizing the bank’s role as a pivotal South-South multilateral development bank.

These meetings, attended by ministers of Economy, Planning, and Finance from IsDB’s 57 member countries, along with representatives from international and regional financial institutions, Islamic banks, and the private sector, highlight the bank’s ongoing commitment to fostering global and regional cooperation. The discussions and side events featuring top-level panelists from government, international organizations, academia, and civil society underscore the IsDB’s central role in shaping a future where originality, solidarity, and prosperity are at the forefront of economic development strategies. This theme is epitomized by the statement “Islamic Finance Has Remarkable Capacity To Nurture Ecosystems – Governor of Saudi National Development Fund,” illustrating the bank’s strategic focus on leveraging Islamic finance to nurture global ecosystems effectively.