Axel van Trotsenburg, the World Bank Senior Managing Director, addressed the Global Forum on Islamic Economics and Finance on May 27, 2024. He extended greetings to several dignitaries including Malaysian Prime Minister Dato’ Seri Anwar bin Ibrahim, Malaysia's Minister of Finance II Datuk Seri Amir Hamzah Azizan, Indonesia's Minister of Finance Sri Mulyani Indrawati, and Goksel Asan from Turkey.
Van Trotsenburg emphasized the significance of partnerships in tackling global challenges. "The world faces a challenging economic, social, and geopolitical environment," he said. He highlighted that only fifteen percent of the Sustainable Development Goals (SDGs) have been achieved according to the midterm review at the 2023 UN General Assembly.
He outlined three key focus areas: leveraging partnerships to end poverty on a livable planet, supporting innovation to address inclusion and climate challenges, and sharing best-in-class knowledge globally for impactful policymaking.
The World Bank has mobilized US$440 billion for SDGs and climate over the past four years but noted that significantly more resources are needed. Van Trotsenburg pointed out that global Islamic finance assets amount to approximately US$3.25 trillion but less than one percent is linked to green and sustainable activities.
In late 2023, the World Bank partnered with the Islamic Development Bank to accelerate action on climate, gender equality, youth development, and economic transformation. Van Trotsenburg stressed that Islamic finance could play a pivotal role in bridging the SDG funding gap due to its principles of justice, fairness, and transparency.
Highlighting innovation within Islamic finance, he cited examples such as parametric Islamic insurance (takaful) introduced in Africa through the DRIVE project to build climate resilience among pastoralists. In Malaysia, collaborations led to issuing the world's first green Sukuk in 2017 valued at US$58.4 million; by 2023 total issuance reached US$10.1 billion.
Since 2018, efforts with Bank Negara Malaysia have supported developing a "Value-based Intermediation" framework for Islamic finance institutions catalyzing sustainability initiatives' growth.
Van Trotsenburg also underscored sharing knowledge globally for impactful policymaking. The World Bank Group Inclusive Growth and Sustainable Finance Hub in Malaysia exemplifies effective South-South collaboration by generating new knowledge together with Malaysian institutions.
In conclusion, he praised Malaysia's government and conference organizers for their efforts: "I wish you a productive discussion...and look forward to this strong dialogue with participants."