Fusing Islamic ethics with sustainability, the new AI-driven index marks a bold leap toward values-
based investing in the Islamic world
In a visionary step toward aligning Islamic finance with global sustainability imperatives, the
AlBaraka Forum for Islamic Economy has partnered with Spectreco, a leader in ESG analytics and
sustainability intelligence, to unveil a groundbreaking Shariah-compliant ESG Index. Scheduled for
launch in June 2025 in Istanbul, this new index promises to set a global benchmark in ethical
investing.
The announcement was made at the 45th AlBaraka Islamic Economics Symposium in Madinah—a
gathering of financial thought leaders, scholars, and policy influencers. The index aims to bridge
Maqasid al-Shariah (the objectives of Islamic law) with globally accepted Environmental, Social, and
Governance (ESG) criteria. What sets this initiative apart is its integration of real-time, AI-powered
sustainability analytics with traditional Islamic screening protocols.
Faraz Khan MBE, CEO of Spectreco, emphasized the transformative nature of the project:
“We’re creating a tool that blends heritage with high-tech. With Saudi Arabia taking a leadership
role, this index enables Islamic institutions to meet growing global demand for sustainable and
principled investing.”
The new platform uses rigorous Shariah-based filters, eliminating non-permissible industries and
analyzing financial ratios while simultaneously leveraging AI for ESG data processing. The result is a
transparent and auditable tool that helps investors navigate complex regulatory environments while
staying aligned with both religious and ethical principles.
Sheikh Yousef Hassan Khalawi, Secretary-General of the AlBaraka Forum, highlighted the long-term
vision:
“This is not just a financial product—it’s a roadmap for the future of ethical finance. As global
markets embrace sustainability, our values must shape innovation, not be sidelined by it.”
Target markets for the initial rollout include Saudi Arabia, the broader GCC, Southeast Asia, and
select European nations—regions already seeing an uptick in ESG-focused investment strategies.
Spectreco’s proprietary platform will provide end-to-end ESG compliance support, tailored
specifically to Islamic financial institutions through an intuitive AI interface.
“Sustainability is no longer a choice; it’s a necessity embedded in financial systems and regulatory
norms,” said Khan. “This index positions Islamic finance not just to participate, but to lead the global
transition.”
The potential impact is immense. Although the Islamic economy is expected to reach $7 trillion by
2028, Islamic finance still comprises less than 5% of global financial assets. Sheikh Khalawi believes

this initiative could serve as a catalyst for the creation of a new generation of Shariah-compliant
financial products that also meet international ESG standards.
“From West Africa to Southeast Asia, we envision this as a truly global instrument—one that
harmonizes spiritual integrity with planetary responsibility,” he said. “It’s a bold leap toward an
inclusive, equitable, and future-ready financial system.”
As nations like Pakistan aim for full Shariah compliance by 2027 and ESG disclosures become
mandatory in several global markets, the upcoming index offers timely, values-aligned answers to
the evolving demands of both regulators and investors.