Madinah Munawarah, Kingdom of Saudi Arabia – In a historic step toward integrating ethical finance and sustainable development, the AlBaraka Forum for Islamic Economy – a leading independent global think tank advancing Islamic economic principles — and Spectreco LLC (USA) – a global sustainability technology, advisory, and implementation company – have officially signed a strategic agreement at the 45th AlBaraka Islamic Economics Symposium in Madinah to develop and launch the world’s first Shariah-Compliant ESG Index.
The signing ceremony took place in the presence of His Highness Prince Faisal bin Salman Al Saud, Governor of Madinah, and His Excellency Sheikh Abdullah Saleh Kamel, Chairman of the Board of Trustees of AlBaraka Forum for Islamic Economy, underscoring the importance of this groundbreaking initiative.
This pioneering initiative merges the principles of Maqasid al-Shariah with leading global ESG standards, offering a comprehensive and ethical framework for responsible investment, sustainability, and financial transparency across Islamic economies.
The Islamic ESG Index will blend rigorous Shariah screening—such as sectoral exclusions and financial ratio thresholds—with AI-powered ESG analytics delivered through Spectreco’s proprietary technology platform. The Index aims to serve a wide range of stakeholders, including investors, regulators, and Islamic finance institutions seeking to align faith-based investment practices with modern sustainability goals.
Sheikh Yousef Hassan Khalawai, Secretary-General of AlBaraka Forum, stated:
“In the fabric of sustainable development, Islamic finance weaves together threads of responsibility, transparency, and ethical investment, creating a legacy that values both people and the planet. Maqasid al-Shariah offers a comprehensive and accurate framework for development, protection, and sustainability across all sectors of life. In this spirit, we are pleased to partner with Spectreco’s platform, which seamlessly integrates Shariah principles with global ESG regulations, further advancing our mission of ethical and impactful finance.”
Faraz Khan MBE, CEO & Partner of Spectreco, added:
“We are deeply honored to partner with AlBaraka Forum on this groundbreaking initiative. By leveraging AI, ESG data intelligence, and Islamic principles, we aim to simplify ESG compliance for Islamic finance institutions while accelerating the adoption of sustainable finance instruments globally. This collaboration represents a powerful intersection of tradition, innovation, and global impact.”
The Islamic ESG Index will initially focus on the GCC, European, and Southeast Asian markets, responding to the growing global demand for values-driven, Shariah-compliant sustainable financial solutions. Through real-time transparency, active monitoring, and dynamic reporting, the Index is expected to play a transformative role in shaping the future of Islamic and sustainable finance worldwide.