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Reflecting on the impact of human activities on future
sustainability has intensified the debate about the environment in recent
years. Green investment, also called ethical investment, is considered
as a vehicle that strengthens environmental management and sustainable
development. In the Islamic economy, investment has to comply with
principles of Shar¯ı‘ah to administer justice with all stakeholders, protect
the environment and sustain the development process. The paper sheds
light on the Islamic financial system as a manifestation of the Islamic
worldview which endorses ethical investment as a path for environmental
management and human survival. Green investment provides an important
solution for ensuring environmental protection and meeting people’s basic
needs. It also increases efficacy of the society’s resources. Islamic finance
could play a major role in environmental management by ensuring that
green investment sustains growth and supports innovation. Increase in
issuance of Islamic investment instruments like Green S. uk¯uk in recent
years is recognition of the importance of the environment in the Islamic
economy. The paper contributes to our understanding about the role that
the Shar¯ı‘ah’s plays in sustaining development and fostering economic
growth.
Amer Al-Roubaie, Adel M. Sarea. (2019) Green Investment and Sustainable Development: The Case of Islamic Finance, Journal of Islamic Business and Management, Vol ume 9, Issue 1.
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