(August 07, 2025 (Dubai – UAE)): The ocean, covering over 70% of the Earth surface, is a vital resource for global economic growth, food security, and climate regulation. However, unsustainable practices such as overfishing, pollution, and habitat destruction threaten marine ecosystems. Financing sustainable ocean initiatives is critical, and Islamic finance—with its ethical and asset-backed principles—can play a transformative role in preserving marine biodiversity and supporting the Blue Economy.
The urgency of ocean finance is underscored by alarming facts and figures. The world's coastal populations contribute significantly to the global economy—an estimated $1.5 trillion per year—with expectations pointing to $3 trillion by 2030. The World Bank estimates that the broader ocean economy supports over 30 million jobs. Yet, plastic pollution costs marine ecosystems up to $2.5 trillion per year in environmental damage. Over 90% of global fish stocks are fully exploited or overfished, threatening food security for billions. The UN Sustainable Development Goal (SDG) 14 calls for the conservation and sustainable use of oceans, requiring $175 billion per year in funding—yet only a fraction is currently available. Given this financing gap, Islamic finance—with its emphasis on ethical investments, risk-sharing, and sustainability—can provide innovative solutions.
Islamic finance aligns with Shariah-compliant principles, prohibiting excessive risk (gharar) and exploitation (riba), while promoting asset-backed financing and social welfare. This makes it an ideal mechanism for funding sustainable ocean projects.
Mr. Muhammad Zubair, a prominent advocate of Islamic finance, emphasizes its potential in ocean sustainability. He states, "Islamic finance should be utilized for ocean finance because its core principles promote ethical investments, environmental stewardship, and shared prosperity. By leveraging Sukuk (Islamic bonds), Waqf (endowments), and Zakat (charitable funds), we can mobilize capital for marine conservation, sustainable fisheries, and blue carbon projects. Islamic finance is not just about profit—it’s about protecting our planet for future generations."
Among the key Islamic finance instruments for ocean sustainability, Sukuk (Islamic bonds) stand out as a powerful tool. These asset-backed and tradable Shariah-compliant securities can fund marine renewable energy projects such as offshore wind, wave, and tidal energy. They can also support sustainable aquaculture and fisheries, including halal-certified seafood farming, as well as plastic waste management and ocean cleanup initiatives. A notable example is the World Bank’s "Blue Sukuk," issued in Indonesia in 2018, which raised $1.25 billion for marine conservation and fisheries management.
Another impactful instrument is Waqf, a perpetual charitable trust that can be directed toward marine conservation. Waqf funds can establish marine protected areas (MPAs) to preserve biodiversity, finance research and innovation in sustainable fishing technologies, and support community-based coastal restoration programs. Similarly, Islamic social finance tools like Zakat (obligatory charity) and Sadaqah (voluntary charity) can be channeled into ocean purification efforts. These funds can finance plastic waste collection and recycling programs in coastal communities, as well as education and awareness campaigns on marine conservation.
Islamic microfinance also plays a crucial role, particularly for small-scale fisheries. Interest-free loans (Qard Hasan) can empower small fishermen to adopt sustainable fishing gear and eco-friendly practices, ensuring long-term viability of marine resources.
Multilateral organizations have a significant role in advancing ocean sustainability through Islamic finance. The Islamic Development Bank (IsDB) has launched initiatives like the "Life Below Water" program, which funds SDG 14 projects. The World Bank and UNDP collaborate on Blue Economy Sukuk to attract ethical investors, while the Green Climate Fund (GCF) supports Islamic finance-based climate resilience projects in coastal regions.
The ocean is a shared resource that demands sustainable financing. Islamic finance, with its ethical and asset-based approach, offers a viable solution to bridge the funding gap. By leveraging Sukuk, Waqf, Zakat, and Islamic microfinance, we can ensure marine conservation while fostering economic growth. Multilateral organizations and institutions like AlHuda CIBE must take the lead in integrating Islamic finance into global ocean sustainability efforts. The time to act is now—let’s invest in our oceans today for a sustainable tomorrow.
AlHuda Centre of Islamic Banking & Economics (AlHuda CIBE) can contribute significantly to this initiative. Through research and advisory services, AlHuda CIBE can conduct studies on Islamic Ocean finance models and best practices. It can also build capacity by training financial institutions on Shariah-compliant blue finance products. Partnerships with governments, NGOs, and multilateral agencies can help structure Sukuk for ocean projects, while awareness campaigns can promote Islamic finance solutions for marine sustainability through conferences and publications.
About Alhuda CIBE:
AlHuda Center of Islamic Banking and Economics (CIBE) is a well-recognized name in Islamic banking and finance industry for research and provides state-of-the-art Advisory Consultancy and Education through various well-recognized modes viz. Islamic Financial Product Development, Shariah Advisory, Training Workshops, and Islamic Microfinance and Takaful Consultancies etc. side by side through our distinguished, generally acceptable and known Publications in Islamic Banking and Finance.
We are dedicated to serving the community as a unique institution, advisory and capacity building for the last twelve years. The prime goal has always been to remain stick to the commitments providing Services not only in UAE/Pakistan but all over the world. We have so far served in more than 104 Countries for the development of Islamic Banking and Finance industry. For further Details about AlHuda CIBE, please visit: https://www.alhudacibe.com/
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