ISRA Institute

Do ESG initiatives always enhance firm value in Sharīʿah-compliant firms?

This study finds that, in the Indonesian context, ESG investments may reduce firm value in the short term due to implementation costs, even though financially stronger firms are more likely to invest in sustainability initiatives.

While Sharīʿah compliance does not significantly moderate the ESG–firm value relationship, it does positively influence ESG engagement, highlighting the ethical alignment between Islamic principles and sustainability.

The findings invite renewed reflection on how to better align ESG strategies, Sharīʿah-based financing structures, and sustainability frameworks to support long-term value creation in Islamic capital markets.

Read about it in the International Journal of Islamic Finance and Sustainable Development, Vol. 18 No. 1 at: https://doi.org/10.55188/ijifsd.v18i1.1083



INCEIF University and World Bank Group Join Forces to Transform Islamic Social Finance

KUALA LUMPUR, 4 May 2026 – INCEIF University and the World Bank Group Inclusive Growth and Sustainable Finance Hub in Malaysia successfully co-organized a High-Level Roundtable Discussion today at Sasana Kijang, Bank Negara.

The forum, titled “Optimising Impact from Islamic Social Finance for Poverty Alleviation – Models and Way Forward,” serves as a critical platform to align global and local leadership on strategic drivers for sustainable economic mobility.

By aligning global and local leaders to redefine how Islamic finance tackles poverty, this event highlights INCEIF University’s role as the Number 1 Business School of the Islamic Economy by Salaam Gateway in partnership with DinarStandard in driving sustainable economic mobility for everyone.

A powerful vision for this shift was shared by Bank Negara Malaysia (BNM) Governor, Datuk Seri Abdul Rasheed Ghaffour, who remarked: “The question is no longer how much is distributed, but how much lives are transformed sustainably.” The Governor emphasised the need to move away from “siloed” approaches toward a holistic system that supports individuals from vulnerability to long-term resilience and progress.

Echoing this sentiment, Prof. Emeritus Dato’ Dr. Mohd Azmi Omar, President & CEO of INCEIF University, highlighted that by focusing on research-backed solutions and shared data models, the industry can move from just counting money given out to measuring how much we have helped people escape poverty.

The event featured comprehensive sessions that explored the “Big Picture” of how zakat, waqf, and micro-finance operate in Malaysia and globally, while “Making it Work” focused on designing programs and fostering collaborations with religious councils and banks. Additionally, the roundtable addressed the role of digital tools, emphasising how data and technology can ensure the right individuals receive the support they need.

The event brought together over 60 key leaders representing government agencies, regulators, financial institutions, and academia to shape a more equitable financial ecosystem.

13 & 14 May 2026

A delegation from ISRA Institute of INCEIF Universiti, led by Prof. Madya Dr. Sa’id Adekunle Mikail, Senior Research Fellow at the Centre of Excellence for Applied Shariah in Economics & Finance (CASHiEF), alongside Dr. Noor Suhaida Kasri, Deputy Director (CASHiEF), and Ustaz Khairun Najmi Saripudin, Senior Researcher at ISRA Institute, recently conducted a strategic engagement visit to several key stakeholders in Kota Kinabalu, Sabah.

The delegation visited Pejabat M***i Negeri Sabah, Jabatan Kehakiman Syariah Negeri Sabah and Majlis Ugama Islam Sabah (MUIS) to discuss ongoing research related to Hibah-Based Financial Products.

The delegation also visited Fakulti Pengajian Islam, Universiti Malaysia Sabah (UMS) for potential collaboration opportunities for Muzakarah 2026, which is to take place in Kota Kinabalu in 21-22 July 2026.

These visits reflect our continuous commitment towards strengthening strategic partnerships and advancing the Islamic finance knowledge and research ecosystem in Malaysia.

A day of dialogue and strategic engagement at INCEIF University.

From a roundtable on OIC economic and financial integration to a leadership engagement with Prof. Mehmet, joined by INCEIF University’s President & CEO, Prof Emeritus Dato’ Dr Azmi Omar, and senior leadership including INCEIF Professor, Prof. Dr Turalay Kenc, the engagements reflect a shared commitment to advancing ideas and strengthening collaboration.

Bringing together perspectives from Malaysia and Türkiye, the session also welcomed representatives from Istanbul Sabahattin Zaim University, as well as Dr Tarik Akin, Head of Finance Department at the Investment Office of the Presidency of the Republic of Türkiye, underscoring the importance of cross-border collaboration in shaping the future of the industry.

𝗛𝗮𝗽𝗽𝗲𝗻𝗶𝗻𝗴 𝗧𝗼𝗱𝗮𝘆 𝗮𝘁 𝟮𝗣𝗠 — 𝗥𝗲𝘀𝗲𝗿𝘃𝗲 𝗬𝗼𝘂𝗿 𝗦𝗽𝗼𝘁 𝗳𝗼𝗿 𝗢𝘂𝗿 𝗜𝘀𝗹𝗮𝗺𝗶𝗰 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 𝗪𝗲𝗯𝗶𝗻𝗮𝗿 𝗦𝗲𝗿𝗶𝗲𝘀

⏰ 2:00 PM (Kuala Lumpur) | 10:00 AM (Dubai)

Join us in our first Quarterly Islamic Banking Webinar Series of 2026 with DIB:

𝗙𝗿𝗼𝗺 𝗔𝘀𝘀𝗶𝘀𝘁𝗮𝗻𝗰𝗲 𝘁𝗼 𝗘𝗺𝗽𝗼𝘄𝗲𝗿𝗺𝗲𝗻𝘁: 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗦𝗰𝗮𝗹𝗶𝗻𝗴 𝗜𝗺𝗽𝗮𝗰𝘁 𝗶𝗻 𝗜𝘀𝗹𝗮𝗺𝗶𝗰 𝗦𝗼𝗰𝗶𝗮𝗹 𝗙𝗶𝗻𝗮𝗻𝗰𝗲

As the global conversation shifts from short-term aid to sustainable empowerment, this webinar brings together leading practitioners and thought leaders to explore how Islamic social finance can deliver measurable, scalable impact. Gain insights into real-world implementation, innovative models, and the strategic partnerships driving financial inclusion and resilience across communities.

Featuring:

- Mr. Ammar Ahmed (Head of Sharia Product Development, Group Internal Sharia Control, DIB. CEO, Dar Al Sharia)

- Dr. Nurhuda Othman (Director (Interim), Centre of Excellence for Research and Innovation in Islamic Economics (i-RISE), ISRA Institute, INCEIF University)

Through distinguished speakers from industry and academia, this session will unpack how institutions are moving beyond theory and towards systems that create lasting socio-economic transformation.

📅 Wednesday, 8 April 2026

⏰ 2:00 PM (Kuala Lumpur) | 10:00 AM (Dubai)

🎟️ Free registration: https://bit.ly/4bSXYvt

Be part of the conversation shaping the future of Islamic social finance.

Selamat Hari Raya Aidilfitri 🌙

A time to reflect, forgive, and reconnect. May your days be filled with peace and barakah.

Maaf Zahir & Batin.