Pakistan Hosts 2nd International Islamic Capital Market Conference on Dec 12

The Securities and Exchange Commission of Pakistan (SECP) is excited to host the 2nd Islamic Capital Market Conference in Karachi on December 12, 2024. Building on the inaugural event’s success, this year’s conference promises to deliver cutting-edge insights into the transformative power of technology and sustainability in Islamic finance.

Themed “From Tech Transformation to Realising Sustainability: Building an Inclusive Islamic Capital Market,” the event aims to explore the synergies between innovation and ethical financial practices, fostering a more inclusive and sustainable economic future.

This landmark event will bring together policymakers, industry leaders, and global experts to discuss strategies for leveraging technology, integrating sustainability, and addressing challenges in Islamic capital markets.

The Growth of Islamic Finance

Islamic finance has cemented its position as one of the fastest-growing segments in the global financial ecosystem. The industry is projected to grow from approximately $4 trillion in assets in 2022 to an estimated $5.9 trillion by 2027. This remarkable growth is driven by:

• Increased Consumer Awareness: A growing preference for ethical and sustainable investments.
• Government Policies: Proactive measures by countries like Pakistan, Malaysia, and Saudi Arabia to foster Islamic finance.
• Technological Advancements: The rise of Islamic fintech solutions that make financial services more accessible.

In Pakistan, Islamic finance is a critical pillar of the economy. As of 2023:

1. 67% of market capitalization in listed securities is Shariah-compliant.
2. 43% of mutual fund assets are aligned with Islamic principles.
3. The takaful sector holds an 11% share of the insurance market premium.

These achievements underline the importance of events like the 2nd Islamic Capital Market Conference, which provides a platform for innovation and collaboration.

The 2nd Islamic Capital Market Conference is more than just a gathering of professionals; it is a forum for shaping the future of Islamic finance. This year’s theme emphasizes the importance of leveraging technology and sustainability to drive inclusivity and growth in Islamic capital markets.

• Highlighting Global Trends: Exploring the latest developments in Islamic finance and how they align with global financial trends.
• Fostering Collaboration: Connecting policymakers, regulators, and industry leaders to facilitate knowledge-sharing and partnerships.
• Addressing Challenges: Identifying and overcoming barriers to growth in Islamic capital markets.

The conference is organized by the SECP in collaboration with two esteemed organizations:

1. AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions): Known for its role in standardizing Shariah-compliant financial practices globally.
2. IsDBI (Islamic Development Bank Institute): The research and training arm of the Islamic Development Bank, dedicated to fostering innovation and sustainability in Islamic finance.

These partnerships ensure that the conference delivers valuable insights and actionable strategies for the global Islamic finance community.

The conference will host over 20 international speakers and hundreds of participants from across the globe. Distinguished attendees include:

• Senator Muhammad Ishaq Dar, Deputy Prime Minister (Expected).
• Sheikh Ebrahim Bin Khalifa Al Khalifa, Chairman of AAOIFI.
• Dr. Sami Al-Suwailem, Acting Director General of IsDBI.

Experts from Bahrain, Saudi Arabia, Nigeria, Malaysia, Türkiye, Oman, Iran, and the United Kingdom will also share their perspectives, making this event a truly global platform for dialogue and collaboration.

Related: Pakistan’s CDNS Targets Rs 170 Billion for Islamic Finance in FY 2024–25

Conference Agenda

The 2nd Islamic Capital Market Conference features a packed schedule designed to educate, inspire, and connect attendees. Here’s a closer look at the agenda:

1. Pre-Conference Workshops: These interactive sessions provide participants with in-depth knowledge on specific topics, including:

• Emerging trends in Islamic fintech.
• Strategies for integrating sustainability into Shariah-compliant financial practices.
• Regulatory challenges and solutions for expanding Islamic capital markets.

2. Gong Ceremony: A symbolic gong ceremony at the Pakistan Stock Exchange will mark the official start of the conference. This event underscores the integration of Islamic finance into mainstream financial markets.

3. Islamic Finance Exhibition: A showcase of 38 leading institutions, the exhibition will feature:

• Innovative Shariah-compliant financial products.
• The latest developments in Islamic fintech.
• Opportunities in green financing, such as green sukuk.

4. Panel Discussions: These expert-led panels will address critical issues, such as:

• The role of technology in advancing Islamic capital markets.
• Strategies for achieving financial inclusion through Islamic finance.
• Promoting ethical investments in a globalized economy.

5. Breakout Sessions: Smaller, focused sessions will allow participants to engage in deeper discussions on niche topics, including:

• Blockchain applications in Islamic finance.
• The role of AI in Shariah-compliant financial planning.
• Financing strategies for small and medium-sized enterprises (SMEs).

6. Economic Transformation Session: This dedicated session will explore how Islamic finance can contribute to sustainable economic transformation, aligning with global goals such as the United Nations’ Sustainable Development Goals (SDGs).

Pakistan has emerged as a leader in Islamic finance, thanks to the SECP’s proactive policies and the country’s growing market demand. Significant milestones include:

• Sukuk Issuance: Domestic Ijarah Sukuk worth Rs. 3.15 trillion issued by mid-2023.
• Mutual Funds and Pension Funds: Shariah-compliant assets account for a substantial share of these markets.
• Takaful Growth: The Islamic insurance sector is expanding rapidly, with an 11% market share of total insurance premiums.

Additionally, Pakistan is aligning its regulatory frameworks with global standards, including IOSCO principles and IFSB guidelines, to enhance its credibility and attract international investment.

Islamic finance continues to thrive worldwide, with significant growth opportunities on the horizon. Key trends shaping the industry include:

Consumers are increasingly seeking investments that align with their ethical and moral values. Islamic finance, with its emphasis on social responsibility, is well-positioned to meet this demand.

Countries like Saudi Arabia and Malaysia are implementing policies to support the growth of Islamic finance. For example, Saudi Arabia’s Vision 2030 includes a focus on expanding Islamic financial services.

Islamic fintech solutions are transforming the industry by:

• Enhancing accessibility to financial services.
• Streamlining compliance with Shariah principles.
• Introducing innovative financial instruments.

The integration of technology into Islamic finance is one of the conference’s key themes. Technological advancements are opening new frontiers for the industry, including:

Blockchain technology is enhancing transparency and trust in financial transactions, making it an ideal fit for Shariah-compliant finance.

AI is revolutionizing investment strategies and risk management, enabling more efficient decision-making processes.

Digital banking solutions are expanding access to financial services, particularly in underserved regions, helping to promote financial inclusion.

Sustainability is deeply rooted in the principles of Islamic finance, which emphasize ethical investments and social responsibility. Key initiatives in this area include:

Green sukuk are financial instruments used to fund environmentally friendly projects. They align with global sustainability goals and offer investors an ethical alternative to traditional bonds.

Islamic finance encourages investments that benefit society, such as affordable housing projects and renewable energy initiatives.

Financial Inclusion

Financial inclusion is a critical focus for the Islamic finance industry. By expanding access to Shariah-compliant financial services, the sector can drive economic growth and reduce poverty. Strategies to enhance inclusion include:

1. Developing products tailored to low-income individuals.
2. Promoting microfinance solutions that align with Islamic principles.
3. Leveraging technology to reach underserved populations.

The conference provides a platform for investors to explore opportunities in Islamic finance, such as:

• Investing in green sukuk and other sustainable financial instruments.
• Partnering with fintech companies to innovate Shariah-compliant solutions.
• Tapping into emerging markets with high demand for Islamic financial products.

The 2nd Islamic Capital Market Conference offers unparalleled opportunities for learning, networking, and collaboration. Here’s why you should attend:

1. Gain Insights: Learn about the latest trends and challenges in Islamic finance.
2. Build Connections: Network with industry leaders, policymakers, and innovators.
3. Enhance Knowledge: Participate in workshops, panels, and discussions that provide actionable insights.

The 2nd Islamic Capital Market Conference is more than an event—it is a movement toward a more inclusive, sustainable, and technologically advanced Islamic finance industry. By bringing together the brightest minds from around the world, this conference will set the stage for groundbreaking innovations and collaborations.

Join us in Karachi on December 12, 2024, to be part of this transformative journey. Together, we can shape the future of Islamic capital markets and create a financial ecosystem that aligns with the values of sustainability, inclusivity, and innovation.