Islamic finance leaders met in Bangkok on 14 October 2026 to push Islamic finance as a tool for funding the energy transition. The forum, “Islamic Finance: From Crisis Resilience to Transition Finance,” was held on the sidelines of the IMF and World Bank Annual Meetings and hosted by the Islamic Bank of Thailand, according to a statement carried by Reuters.
The details
About 150 participants from ASEAN, Africa and the Middle East attended. The forum was organised by the Islamic Bank of Thailand (ibank) with the International Islamic Economics and Finance Conference for Sustainable Development (IFESDC). Speakers included:
- Dr Muhammad Sulaiman Al Jasser, President of the Islamic Development Bank Group
- Arga M. Nugraha, Deputy President Director of Bank BSN (PT Bank Syariah Nasional), Indonesia
- Thaweelap Rittapirom, President of the Islamic Bank of Thailand
- Professor Mohd. Azmi Omar, President of INCEIF University
- Arun Boonchom, Sheikhul Islam of Thailand, who gave opening remarks
Al Jasser argued that the success of Islamic finance “should not be measured solely by asset growth.” Arga M. Nugraha called for a shift toward profit-and-loss-sharing financing, stronger impact measurement and more cross-border collaboration.
Panellists said sukuk and partnership contracts such as musharakah and mudarabah could channel money into renewable energy, sustainable infrastructure and small businesses. The forum also called for zakat and waqf to be integrated into the wider financial system to support social protection and poverty reduction.
Why it matters
The message lands at an awkward moment for green Islamic finance. Fitch Ratings reported that ESG sukuk issuance fell 32% in the first half of 2026, as we covered in our ESG sukuk outlook summary. Speakers in Bangkok were effectively arguing that transition finance should be a long-term priority regardless of short-term market swings.
The call for better impact measurement is also significant. Islamic finance often claims a social purpose, but investors and regulators increasingly want evidence. A senior Indonesian banker and the IsDB president both stressing impact over asset size signals that measurement is moving up the industry’s agenda.
What’s next
The Islamic Bank of Thailand said it will develop a “Bangkok Policy Note,” a set of policy recommendations on advancing Islamic transition finance. No publication date has been announced.
FAQ
The use of Shariah-compliant instruments, such as sukuk and partnership financing, to fund the shift to cleaner energy and more sustainable economies.
The Islamic Bank of Thailand, with the IFESDC, on the sidelines of the 2026 IMF and World Bank Annual Meetings.
Source: Reuters via TradingView, 16 October 2026.
