The high-level Islamic Finance and Sustainable Development Goals (SGDs) taskforce will be anchored in London but run by the Glasgow team.

The UK Government will be the founding country partner when it begins in 2020, with an aim to promote understanding and encourage adoption of the UN SDGs amongst Islamic financial institutions.

Gatehouse Bank has confirmed participation and interest has already been expressed from Malaysia and Dubai, as well as other UK organisations.

The UN’s SDGs are the blueprint to achieve a better and more sustainable future for all, addressing issues such as climate change, education and equality.

But a recent analysis from UKIFC and Malaysia-based ISRA found a considerable lack of knowledge, misunderstandings and minimal engagement by Islamic financial institutions with the SDGs.

Islamic finance is one of the fastest-growing sectors in the global financial industry, with assets expected to reach US $3.8 trillion in 2022. Innovative financial structuring in the sector can help create instruments that drive capital towards the SDGs.

The UKIFC was established in 2005 as a specialist advisory and developmental body focused on promoting and enhancing the global Islamic and ethical finance industry. It was the first global specialist Islamic finance body to sign up to the UN Principles of Responsible Banking (PRB).

John Glen MP, the economic secretary to the Treasury, said: “The UK is a world leader in Islamic Finance, so I am pleased we’re now a founding country partner and observer member of the new Islamic Finance SDG Taskforce.

“This Taskforce will bring together the global Islamic finance community so it can help us meet our international, environmental and sustainability objectives – using UK expertise in sustainable finance to drive forward innovation around the world.”

Richard de Belder, advisory board member of the Islamic Finance Council UK, said: “Delivering the UN’s Sustainable Development Goals will require private sector involvement. But business-as-usual in the global financial arena will not deliver the 2030 goals.

“A step-change in private investment in SDGs is required, and Islamic finance, as one of the fastest-growing sectors in the global financial industry, provides a unique opportunity for innovative solutions.

“We need a fairer system of financial management that delivers more than just profit and the inherent principles within Islamic finance are naturally aligned to the sustainability agenda.”