SEO head stresses Islamic capital markets’ role in socio-economic development
Date
10/28/2024 8:51:55 AM
(MENAFN) At the 16th Islamic Capital Market Conference held in Tehran, Hojatollah Seyedi, the head of the Iran Securities and Exchange Organization (SEO), emphasized the significance of Islamic capital markets as platforms for introducing financial instruments that yield positive socio-economic outcomes. He articulated that financial innovation serves as the cornerstone of any progressive financial system, particularly within the realm of Islamic finance. Seyedi noted, "Today, we are witnessing a leap in financial instruments that meet both Sharia principles and modern investment needs."
Among the innovations highlighted by Seyedi was the concept of green sukuk, a contemporary financial tool designed to fund environmentally sustainable projects in alignment with Islamic principles. He explained how green sukuk not only supports ecological initiatives but also aligns with the ethical considerations central to Islamic finance. This reflects a growing recognition of the need for financial products that contribute to sustainable development while adhering to Sharia guidelines.
Furthermore, Seyedi discussed the integration of blockchain technology into sukuk structures, specifically the use of smart contracts. He pointed out that this advancement could enhance transparency, reduce operational costs, and streamline management processes within the Islamic capital market. By adopting such technologies, the sector can improve efficiency and trust, vital factors in attracting investors.
Seyedi concluded by stating that these developments illustrate the adaptability and potential of the Islamic capital market to address the complex challenges of today's financial landscape. As these markets evolve, they are positioned to play a crucial role in fostering economic growth while adhering to ethical and social principles.
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