The world should look to the Islamic Social Finance as the new innovative way to aid global humanitarian programmes, the Sultan of Perak, Sultan Nazrin Shah said.
He said the Islamic Social Finance, which can be an additional source of financing is also particularly important, given that the majority of people in need of aid is in Muslim countries.
"Every year, Muslims worldwide donate generously to Islamic Social Finance mechanism to alleviate human sufferings.
"We need to recognise the crucial difference that these emerging donors can make to humanitarian financing, and we believe in the importance of expanding their numbers while at the same time protecting the fundamental principles of humanitarian aid and good governance," Sultan Nazrin said.
He said this in his opening address at the Special Session on Islamic Social Finance World Humanitarian Summit in Istanbul, Turkey, yesterday. The text of his speech was sent to Bernama in Kuala Lumpur last night.
Crises are lasting longer
Sultan Nazrin, who is also co-chairperson of the UN High-Level Panel on Humanitarian Financing, said now is the time to explore innovative ways to finance crisis management and development programmes, the more so as crises are lasting longer and delaying development.
He added that investments in humanitarian action, such as sukuk and social impact bonds, would not only lead to long-term social improvements, but also to long-term resilience and to adaptive capacity-building for the communities at risk.
Such investments would empower communities to recover more strongly from shocks as well as facilitate social and economic inclusion within their population.
Citing the award-winning Global Alliance for Vaccines and Immunisation Matching Fund launched last year, the Perak ruler said the unique vaccine sukuk programme had been able to raise US$500 million, which was one-and-a-half times oversubscribed.
"This is a new way of mobilising resources that can increase sustainable humanitarian financing, using capital market instruments to reach non-traditional donors and even 'conscientious investors'," he said.
Sultan Nazrin said these important initiatives would also enable non-traditional donors, such as the private sector and faith-based organisations, to channel funds to local and regional bodies that form the frontline of humanitarian response, yet which are often unable to access directly the financial support they urgently require.
- Bernama
