The Road to the SDGs

or assessments reports and/or frameworks on the Islamic and/or conventional finance sectors – Analytical appraisal — Review and analyse the relevant documents/ information/data gathered in the desk research, alongside IsDBI and IsDB’s relevant internal documents, plans, strategies such as the 10YS and the P5P, regulations and data – Assessment and benchmarking — Create a pool of best practices adopted by MDBs and international agencies that can be used as a benchmark in the development of the IF-CAF – Modelling — Identify the qualitative assessment criteria for the IF-CAF and map the way in which it can be transformed into scoring metrics – Finalising the Framework — Engage with internal IsDBI, IsDB Group and other external stakeholders (such as other MDBs, industry experts, etc.) to have feedback on the development process, outcome and the results obtained in a pilot programme consisting of five MCs. X Stage 2 is the implementation of the Framework, including: – Actual assessment of all MCs and development of studies/reports for each MC outlining the findings, results and recommendations – Using results from IF-CAF assessment of all MCs to serve as a crucial input mechanism into the larger MCPS of MCs for the strategic pillar of Islamic finance. X The methodology will: – Result in the formulation of an IF-CAF that is attuned to the strategic objectives of the 10YS and P5P – Be attentive to the effectiveness of existing MDBs’ and agencies’ frameworks, carefully selecting appropriate best practices that could also be adopted, wholly or partially, by the IF-CAF – Identify the critical components of an Islamic finance ecosystem and the qualitative assessment criteria which can measure effectiveness – Develop a clear system for quantification that will allow MCs to be assessed and scored, to propose optimal support that is adequately structured to their bespoke needs and priorities – Benefit from expert inputs both internally, within IsDBI- IsDB Group, as well as external industry stakeholders to enable a practical framework in line with IsDBI-IsDB Group’s visions and aspirations. ACHIEVEMENTS X Planned outcomes for the IF-CAF include: – Ensuring that resources are optimised in the most effective and efficient manner for achieving IsDB’s strategic goals – Enabling MCs to emulate the strengths and success factors of the countries where Islamic finance industry is successful – Enabling MCs to identify gaps in the Islamic finance ecosystem in order to prioritise development efforts to address those gaps in order to achieve more efficient outcomes. X The first stage of the project is nearing completion, with the development of a sound and effective assessment framework to enable: – Early identification of strengths and gaps of an Islamic finance ecosystem (legal, regulatory, supervisory, tax, governance, financial inclusion, etc.) in each country – Proposal of the most suitable IsDB intervention strategies to derive maximum impact and effectiveness for Islamic finance development. X In 2022, the second stage of the project will begin. This will comprise field study and assessment of MCs. The project is expected to continue on a long-term basis to cover all 57 MCs and provide support to MCPS and GVC initiatives. INVESTMENT X The project utilises the services of a renowned international Islamic finance consulting firm, along with technical review and inputs from IsDBI’s Islamic Finance Advisory and Technical Assistance Division and the IsDBI-IsDB Group project team. X Field implementation and assessment exercises are expected to be undertaken during 2022 as conditions become clearer following the COVID-19 pandemic. I S L A M I C F I N A N C E C O U N T R Y A S S E S S M E N T F R A M E W O R K The programme aims to connect IsDB Group’s core strategic pillar of Islamic finance development with GVCs, MCPS and OED key recommendations [ 71 ] T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S