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WB explores role of Islamic finance in development

Practical measures are required to enhance the contribution of the sector said World Bank.
The Islamic finance assets grew at an annual rate of 17 per cent during 2009 till 2013 and are estimated to exceed $2 trillion.
The Islamic finance, the potential source of development finance, is often overlooked, according to the study.
The Millennium Development Goals set the stage for global support of ambitious development goals behind which the world must rally. The sustainable development goals bring forward the unfinished business of millennium development goals (MDGs) and go even further.
Developing countries are expected to speed up reforms to spur growth and improve MDG-related service delivery, while donors would provide larger financial resources and international trade access.
The OECD’s Development Assistance Committee (DAC) countries are expected to reach their commitment of providing Official Development Assistance equal to 0.7pc of Gross National Income (GNI).
The estimated $15 trillion in losses from the global financial crisis highlight the vulnerability of the financial sector.
Islamic finance seeks to ensure that financial practices and their accompanying legal instruments comply with Shariah that provides a comprehensive approach to various aspects of life, including economic dealings.
In addition to legal rules, Shariah also provides moral principles relating to economic activities and transactions.
A more effective role for Islamic finance in the implementation of Sustainable Development Goals would require supply of an innovative mix of products, adequate governance of Islamic finance intermediaries, and a supportive legal and regulatory framework.

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