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ISTANBUL INTERNATIONAL CENTRE FOR
PRIVATE SECTOR IN DEVELOPMENT

Thematic Areas

ISTANBUL INTERNATIONAL CENTRE FOR
PRIVATE SECTOR IN DEVELOPMENT

Thematic Areas

 

IMPACT INVESTING

Impact Investing refers to the deployment of funds into investments that generate a measurable and beneficial social or environmental impact, alongside a financial return on investment. It is an innovative way of advancing the private sector’s contribution to the achievement of the Sustainable Development Goals (SDGs) by 2030. The past decade has showcased significant investor interest in allocating assets towards investments with material social and environmental impact.

According to the IFC’s latest estimate of global impact investing markets, USD 2.3 trillion was invested for impact in 2020, and this figure has the potential to reach USD 26 trillion in the near future. However, developing countries are lagging behind in terms of attracting capital and investments due to four challenges which limit the growth of impact investments in the least developed and developing countries.

 

ICPSD conducts research, technical assistance and advocacy activities to address these challenges and to help countries explore their potential to attract impact investments.
ICPSD’s impact investing workstream is based on two pillars:

 

1. Conventional Finance

Under conventional finance stream, ICPSD conducts Impact Investing Ecosystem Studies to promote impact investments as significant SDG enablers in developing and least developed countries. The study showcases impact investing opportunities for international and local impact investors, identifies high-potential areas and provides policy recommendations to foster an impact investing ecosystem.

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To mobilize increased private capital supporting the SDG progress in developing countries, ICPSD implements SDG Investor Maps that identify SDG-aligned investment opportunity areas to empower investors seeking investment opportunities to generate positive impact with required tools and insights.

Furthermore, the Center’s support to UNDP Country Offices includes advocacy activities to catalyze new communication and collaboration pathways, these activities offer venues to bring together different stakeholder groups, including investors, businesses and public institutions. The Center also provides technical assistance aimed at overcoming challenges related to SDG financing and building capacity around impact and SDG-aligned investments in developing countries.

 
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2. Islamic Finance

Islamic Finance can be a strong and non-traditional source of financing for the SDGs. With global assets reached US$3.4 trillion in 2020, and projected growth of 8% per annum until 2025, Islamic finance has a footprint in Asia and Middle East; is ripe for growth in South America and Europe; and has future markets in North America, Central Asia and Australia.





 

Islamic Finance has emerged as an effective non-traditional mode of financing sustainable development, with global assets of USD 3.4 trillion and a 14% growth rate in 2020. With growth expected to stabilize at 8% per annum, thereby causing global assets to reach USD 4.94 trillion by 2025, Islamic finance can be an important source of SDG investment.

The Global Islamic Finance and Impact Investing Platform (GIFIIP) was launched to connect Islamic impact investors and public or private funds with impact enterprises, following the partnership between ICPSD and the Islamic Development Bank (IDB) in 2016. The platform is planning to help promote peer learning, advocacy, deal sourcing and matchmaking to advance inclusive financial systems, worldwide.

Our Services

Under Islamic Finance portfolio, ICPSD provides the following services:

Green Sukuk Initiative

A unique example of a Shariah-compliant impact investing instrument with strong growth prospects to fund environment-friendly endeavors. The Initiative focuses on raising awareness and helping stakeholders to build capacity for utilizing Green Sukuk in green infrastructure projects, as an alternative financing instrument.

Massive Open Online Course

Islamic Finance for the Sustainable Development Goals Explores the foundations and principles of Islamic finance from the perspective of sustainable development.

Islamic Finance portfolio trainings

‘Green Sukuk Training’ (9 modules), ‘Islamic Finance and Impact Investing Training’ (5 modules), ‘Islamic Microfinance Training’ (7 modules)

Islamic Finance technical assistance

Main technical assistance areas are: Islamic microfinance (assessment, strategy and product development), green sukuk, engaging Islamic finance modalities in credit guarantee funds, takaful & microtakaful (Insurance and Islamic microinsurance) and various capacity development activities in different areas of Islamic finance. ICPSD has worked on leveraging Islamic Finance for Community-Based Livelihoods and SMEs in Afghanistan and on enhancing Economic Resilience of vulnerable SMEs in Djibouti.

Evidence-based research reports

‘I for Impact: Blending Islamic Finance and Impact Investing for the Global Goals’, launched in 2017, and “Pre-Feasibility Study for Green Sukuk Issuance in the Republic of Uzbekistan”, launched in 2021.

 

IMPACT INVESTING

Impact Investing refers to the deployment of funds into investments that generate a measurable and beneficial social or environmental impact, alongside a financial return on investment. It is an innovative way of advancing the private sector’s contribution to the achievement of the Sustainable Development Goals (SDGs) by 2030. The past decade has showcased significant investor interest in allocating assets towards investments with material social and environmental impact.

According to the IFC’s latest estimate of global impact investing markets, USD 2.3 trillion was invested for impact in 2020, and this figure has the potential to reach USD 26 trillion in the near future. However, developing countries are lagging behind in terms of attracting capital and investments due to four challenges which limit the growth of impact investments in the least developed and developing countries.

 

ICPSD conducts research, technical assistance and advocacy activities to address these challenges and to help countries explore their potential to attract impact investments.
ICPSD’s impact investing workstream is based on two pillars:

1. Conventional Finance

Under conventional finance stream, ICPSD conducts Impact Investing Ecosystem Studies to promote impact investments as significant SDG enablers in developing and least developed countries. The study showcases impact investing opportunities for international and local impact investors, identifies high-potential areas and provides policy recommendations to foster an impact investing ecosystem.

 

To mobilize increased private capital supporting the SDG progress in developing countries, ICPSD implements SDG Investor Maps that identify SDG-aligned investment opportunity areas to empower investors seeking investment opportunities to generate positive impact with required tools and insights.

Furthermore, the Center’s support to UNDP Country Offices includes advocacy activities to catalyze new communication and collaboration pathways, these activities offer venues to bring together different stakeholder groups, including investors, businesses and public institutions. The Center also provides technical assistance aimed at overcoming challenges related to SDG financing and building capacity around impact and SDG-aligned investments in developing countries.

 

2. Islamic Finance

Islamic Finance can be a strong and non-traditional source of financing for the SDGs. With global assets reached US$3.4 trillion in 2020, and projected growth of 8% per annum until 2025, Islamic finance has a footprint in Asia and Middle East; is ripe for growth in South America and Europe; and has future markets in North America, Central Asia and Australia.

 

Islamic Finance has emerged as an effective non-traditional mode of financing sustainable development, with global assets of USD 3.4 trillion and a 14% growth rate in 2020. With growth expected to stabilize at 8% per annum, thereby causing global assets to reach USD 4.94 trillion by 2025, Islamic finance can be an important source of SDG investment.

The Global Islamic Finance and Impact Investing Platform (GIFIIP) was launched to connect Islamic impact investors and public or private funds with impact enterprises, following the partnership between ICPSD and the Islamic Development Bank (IDB) in 2016. The platform is planning to help promote peer learning, advocacy, deal sourcing and matchmaking to advance inclusive financial systems, worldwide.

Our Services

Under Islamic Finance portfolio, ICPSD provides the following services:

Green Sukuk Initiative

A unique example of a Shariah-compliant impact investing instrument with strong growth prospects to fund environment-friendly endeavors. The Initiative focuses on raising awareness and helping stakeholders to build capacity for utilizing Green Sukuk in green infrastructure projects, as an alternative financing instrument.

Massive Open Online Course

Islamic Finance for the Sustainable Development Goals Explores the foundations and principles of Islamic finance from the perspective of sustainable development.

Islamic Finance portfolio trainings

‘Green Sukuk Training’ (9 modules), ‘Islamic Finance and Impact Investing Training’ (5 modules), ‘Islamic Microfinance Training’ (7 modules)

Islamic Finance technical assistance

Main technical assistance areas are: Islamic microfinance (assessment, strategy and product development), green sukuk, engaging Islamic finance modalities in credit guarantee funds, takaful & microtakaful (Insurance and Islamic microinsurance) and various capacity development activities in different areas of Islamic finance. ICPSD has worked on leveraging Islamic Finance for Community-Based Livelihoods and SMEs in Afghanistan and on enhancing Economic Resilience of vulnerable SMEs in Djibouti.

Evidence-based research reports

‘I for Impact: Blending Islamic Finance and Impact Investing for the Global Goals’, launched in 2017, and “Pre-Feasibility Study for Green Sukuk Issuance in the Republic of Uzbekistan”, launched in 2021.