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EPICENTRE: Global Islamic Finance Forum (GIFF) 2025
Global Islamic Finance Forum (GIFF) 2025
 
 
The 8th edition of the Global Islamic Finance Forum (GIFF), held from 13th – 15th October in Kuala Lumpur, had successfully brought together over 1,300 delegates from 44 countries. With the theme “Bridging Tradition and Tomorrow: Advancing Business, Empowering Communities”, GIFF 2025 has reaffirmed that the building blocks of Islamic finance are already in place, setting the stone for innovation to ensure Islamic finance truly delivers on its values – equity, justice, and the betterment of all.  
 
The MIFC Team
Key spotlights at GIFF 2025 

MIFC Global Impact Challenge 2025 – Catalysing Innovation in Islamic Finance 
The MIFC Global Impact Challenge 2025 (MIFC GIC), held in conjunction with GIFF 2025, underscored Malaysia’s commitment to advancing innovation in Islamic finance. Organised by Bank Negara Malaysia and the MIFC Leadership Council, the challenge attracted global participation and was supported by global partners including the Islamic Finance Council UK (UKIFC), Hong Kong Trade Development Council (HKTDC), Islamic Development Bank (IsDB), and the World Bank Group’s Inclusive Growth & Sustainable Finance Hub. ASBhive served as the knowledge partner and accelerator programme provider.
 
Four winners were recognised for their transformative solutions: 
•   e-Wakalah – a blockchain-powered wakalah management platform 
•   Gobarakah – a fintech solution delivering social aid via secure e-vouchers 
•   Koha Islamic Digital – a tech-enabled estate planning platform for hibah and wasiyyah 
•   Bagh-e – a platform empowering small-scale farmers through digital credit and market access
Winners received cash prizes and will be onboarded to 12 months of post-programme support to scale their solutions globally.   
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Royal Vision for Islamic Finance: Balancing Profitability with Purpose
The GIFF 2025 Royal Dinner, jointly hosted by Bank Negara Malaysia and the MIFC Leadership Council, was graced by the presence of His Royal Highness Sultan Nazrin Muizzuddin Shah  ibni Almarhum Sultan Azlan Muhibbuddin Shah Al-Maghfur-Lah, the Sultan of Perak and Royal Patron of Malaysia’s Islamic Finance Initiatives. This distinguished gathering brought together industry leaders, policymakers, and international delegates to celebrate collaboration and innovation in Islamic finance, reaffirming Malaysia’s role as a global leader in shaping inclusive and sustainable financial ecosystems.

In his Royal Lecture, His Royal Highness Sultan Nazrin emphasized the moral responsibility of Islamic finance institutions to balance profitability with social impact. He underscored the transformative potential of Islamic social finance, citing initiatives such as iTEKAD, which empower microentrepreneurs and strengthen socioeconomic resilience. 

The Governor, in his welcoming remarks, called for bold reforms to position Islamic finance at the core of the halal economy and unlock the full potential of waqf and zakat as impact-driven tools for sustainable development. 
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Read More: Governor's Welcoming Remarks

MIFC Agenda and Way Forward: Formation of MIFC Business Network (MBN)
The MIFC Leadership Council (MLC) concluded its three-year term since its establishment in 2022, having laid a strong foundation to enhance global connectivity for Islamic finance. Over this period, the Council spearheaded strategic initiatives that positioned Malaysia to capture emerging opportunities in sustainability, social finance, and the halal economy. The MLC’s three-year report highlights these achievements and sets the stage for the next phase of growth.

To advance this agenda, the MIFC Business Network (MBN) will be formed as a coalition of industry champions from banking, takaful, capital markets, and ancillary services. Eleven founding members have committed to join, with broader participation expected. The MBN will focus on deepening collaboration, delivering tangible business outcomes, and scaling impact internationally. Regulators, including Bank Negara Malaysia and the Securities Commission, will continue to support the industry in ensuring Malaysia remains a global leader in Islamic finance. 
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Launch of the ICD LSEG Islamic Finance Development Indicator (IFDI) Report
Malaysia continues to lead globally in Islamic finance, securing the top position in the Islamic Finance Development Indicator (IFDI) Report 2025 among 140 countries. This achievement reflects Malaysia’s strong governance framework, policy innovation, and commitment to sustainability. The report highlights Malaysia’s pivotal role in shaping inclusive financial ecosystems and advancing Shariah-compliant solutions worldwide.

Globally, Islamic finance assets reached US$5.98 trillion in 2024, marking a 21% year-on-year growth, and are projected to hit US$9.7 trillion by 2029. Islamic banking remains dominant, accounting for 72% of total assets, while sukuk markets surpassed US$1 trillion in outstanding value. ESG sukuk issuance also gained traction, signalling the industry’s growing alignment with sustainability goals.
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World’s first climate sukuk launching by Unity Group International Holding, Hong Kong 
Unity Group International Holding, based in Hong Kong, has made history by issuing the world’s first RM118 million climate sukuk, blending Islamic finance principles with carbon credits and digital innovation. This groundbreaking instrument aims to fund projects that mitigate climate change while adhering to Shariah standards, marking a significant step toward integrating sustainability into Islamic capital markets.

The sukuk leverages blockchain technology for transparency and efficiency, while incorporating carbon credit trading to incentivize green initiatives. This innovative approach positions Malaysia and Hong Kong as pioneers in sustainable Islamic finance, aligning with global efforts to combat climate risks and promote ethical investment.
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6th CSAF Charts New Path for Islamic Finance Governance at GIFF 2025
The 6th  Central Shariah Advisory Forum, chaired by Dato’ Prof. Dr. Ashraf Md. Hashim was held in Kuala Lumpur in conjunction with GIFF 2025. The forum convened over 50 delegates from 10 countries, including representatives from Islamic standard-setting bodies and international organizations. The meeting marked a significant milestone with the adoption of the Terms of Reference to strengthen governance, clarify roles and responsibilities, as well as enhance coordination among member authorities. 
The forum featured dynamic exchanges on emerging issues in Islamic finance, including strategies for transitioning conventional banking systems, integrating Islamic finance into national development agendas, and leveraging social finance instruments. Key regulatory developments were highlighted, such as Malaysia’s upcoming policy on the broader application of ta`awun (mutual assistance) in Takaful to promote financial resilience and inclusion, and legal reforms in the UAE recognizing Takaful funds as separate legal entities. Additionally, members explored the implications of Central Bank Digital Currency (CBDC) for Islamic finance, emphasizing the need for Shariah-compliant frameworks to guide CBDC adoption and ensure alignment with maqasid al-Shariah objectives. These initiatives underscore global efforts to enhance transparency, accountability, and Shariah compliance in Islamic financial systems while preparing for digital transformation.
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ASEAN Takaful Alliance - Transforming Islamic Protection Across Borders
The ASEAN Takaful Alliance (ATA), launched at GIFF 2025, aims to position ASEAN as a global benchmark for Takaful excellence. This strategic initiative promotes cross-border collaboration, innovation and financial integration to deliver inclusive protection for underserved communities.

By fostering knowledge exchange and capacity building, ATA seeks to strengthen regional resilience and advance financial inclusivity within Islamic finance. The alliance also supports the ASEAN Financial Integration Framework, reinforcing Malaysia’s leadership in shaping the future of Islamic finance across the region.

Looking ahead, ATA will focus on digital-first solutions and strategic partnerships to expand Takaful’s reach and impact, ensuring sustainable growth and greater accessibility across ASEAN markets. 
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Building Global Expertise: IFCBP Empowers Central Asia and Azerbaijan in Islamic Finance
Bank Negara Malaysia and the Islamic Development Bank (IsDB) hosted the inaugural Islamic Finance Capacity Building Programme (IFCBP), held from 13–17 October, in conjunction with GIFF2025. Facilitated by ISRA, the five-day programme addressed the growing demand for technical expertise in Islamic finance from Central Asia and Azerbaijan. It provided participants with practical insights into Malaysia’s successful dual financial system and Islamic liquidity management practices, reinforcing Malaysia’s position as a global knowledge hub for capacity building.

The programme emphasised practical strategies for integrating Islamic finance into national development agendas. Positive feedback from participants highlighted its relevance and effectiveness, with IsDB signalling plans to replicate similar initiatives in other regions. This effort reinforces Malaysia’s commitment to advancing global Islamic finance through education, technical expertise, and capacity building.

Driving Market Innovation: IFMC Roundtable Charts the Future of Islamic Financial Markets
The Islamic Financial Market Committee (IFMC) Roundtable at GIFF 2025 brought together over 70 industry practitioners to explore strategies in building a forward-looking and comprehensive Islamic finance ecosystem. Discussions focused on broadening the sukuk investor base beyond traditional segments, building a future-oriented market infrastructure conducive to innovation through Malaysia Overnight Rate-i (MYOR-i) and advancing Islamic repo instruments to deepen market liquidity. 

The session also marked significant milestones with the signing of Memorandum of Understanding on the enhanced Sell and Buy Back Agreement (SBBA) and the Tahawwut Master Agreement (TMA) as well as Cross Currency ESG SBBA agreement between HSBC Amanah, RHB Islamic, Standard Chartered Saadiq, and UOB Malaysia. These developments underscore Malaysia’s commitment to strengthening market infrastructure and embedding sustainable practices in Islamic finance.  
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Read More: Deputy Governor Adnan Zaylani Opening Address

iTEKAD Protection: Driving Financial Security Through Islamic Social Finance 
 
The iTEKAD Protection programme was officially launched during GIFF 2025 by the Governor of Bank Negara Malaysia, marking a significant milestone in Malaysia’s social finance landscape. This initiative introduces risk protection to the iTEKAD umbrella initiative targeted for vulnerable communities, including microentrepreneurs, goods delivery riders, and participants of Inisiatif Pendapatan Rakyat. Four takaful operators and their implementation partners have committed to pilot social takaful initiatives and anticipates to roll them out in the coming months.

To support this effort, the Government has allocated RM5 million in matching grants under Budget 2025, enabling broader access to protection for underserved segments. This expansion builds on the success of iTEKAD’s microfinancing model, reinforcing Malaysia’s commitment to inclusive growth and financial resilience.

In conjunction with the launch, the World Bank released its report titled “iTEKAD: Making Inroads into Social Finance”, which highlights the programme’s achievements in promoting financial inclusion for low-income microentrepreneurs. The report also identifies areas for improvement, including participant selection, training interventions, and monitoring frameworks, to ensure long-term sustainability and impact. 
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Read More: Assistant Governor Suhaimi Ali Opening Remarks
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