The World Bank said today the Islamic capital market's (ICM) value proposition has to be very clear to show that the ICM concept is more powerful or just as good as the environmental, societal and governance (ESG) investment schemes.

World Bank financial sector specialist consultant Dr Mohamed Eskandar Shah said ESG's value proposition seems to be quite straight forward compared to Islamic finance.

The question is how do you show that this (ICM) value proposition is more powerful or just as good as ESG's value proposition. ICM is trying to converge with ESG to attract a larger group of investors, branding ICM together with ESG investing.

Another way of looking at it is especially (in the context of) what we are going through today with the pandemic. Can ICM stand alone and be more successful with its own value proposition, which I think is more focused on the redistribution of wealth, social justice and financial inclusion so on and so forth?” Mohamed Eskandar said today at a panel discussion during the Shariah Investment Virtual Conference organised by Bursa Malaysia-i and CGS-CIMB Securities Sdn Bhd.

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The Edge Markets