ADDRESS
BY
HIS ROYAL HIGHNESS
SULTAN NAZRIN MUIZZUDDIN SHAH
AT THE
GLOBAL ISLAMIC FINANCE FORUM ROYAL DINNER 2025
DATE: SUNDAY, 12 OCTOBER 2025
TIME: 8:00 PM
VENUE: FOUR SEASONS, KUALA LUMPUR.
“Bridging Tradition and Tomorrow:
Advancing Business, Empowering Communities”
1. It is a pleasure for me to be among such esteemed company this evening. As we gather here, I invite you to join me in a moment of reflection and shared purpose. Tonight’s event is a gathering of visionaries, leaders of industry, scholars, innovators, pioneers and stewards of Islamic finance, convened under the auspices of the Global Islamic Finance Forum 2025. This evening, we should celebrate progress thus far; but also reaffirm our collective responsibility to the further advancement of Islamic finance. This occasion not only honours what has been achieved, but allows us to envision further what we can accomplish — together.
2. Today, we live in an era of profound transformation shaped by geopolitical shifts, climate change, ageing populations, and widening socio-economic divides. These are not distant issues; they are urgent calls to action. In such times, leadership must be anchored in courage, wisdom, and moral clarity. We must pursue profit with responsibility, growth with justice, facilitated by a value-based financial system that uplifts communities and serves the greater good.
3. Islamic finance is built on timeless principles such as risk-sharing, fairness, transparency, and accountability. These enduring values should guide our every commercial activity. The Prophet Muhammad sallallahu ‘alayhi wassalam, himself a merchant, exemplified honesty and transparency in trade[1], earning the title Al-Amin (The Trustworthy) even before his Prophethood. His legacy reminds us that commerce, when guided by conscience, becomes a force for good as well as an impetus for success and growth. In our region, history echoes this spirit — from Parameswara’s founding of Melaka as a thriving entrepôt, to Admiral Cheng Ho’s voyages that connected economies and cultures through building trust and diplomacy[2]. It is no coincidence that as Islam strengthened its foothold in Melaka, the region thrived and prospered. These stories remind us that Islamic values have long underpinned prosperity, diplomacy, and cross-cultural exchange.
4. From its bold beginnings, Islamic finance has grown into a global system of scale and influence. Today, it is a USD 5 trillion industry[3]. The sukuk market alone, valued at USD 1 trillion, now includes nearly 40 issuing countries across Europe, Africa, and Asia — financing sectors from healthcare to infrastructure[4]. Such reach reflects the vision of pioneers, the wisdom of scholars, and the courage of leaders who saw finance as both an economic system and a moral enterprise. It is proof that a system built on ethical foundations can thrive across borders and cultures.
5. Yet, progress must not give way to complacency. Complacency dulls innovation, and risks detaching us from the values that brought us here. Islamic finance must remain purposeful and responsive to a changing world. While the industry has made commendable strides, challenges persist as seen by market fragmentation, ecosystem gaps, and capability limitations. These are not setbacks, but reminders that our work continues. Encouragingly, stakeholders across the ecosystem — regulators, institutions, scholars, and innovators — are actively addressing these gaps. Their efforts reflect a shared understanding: Islamic finance must remain dynamic, inclusive, and forward-looking. We are reminded of the Prophet’s own journey from the solitude of Hira to the flourishing society of Madinah, and ultimately to the far-reaching expansion of Islam[5]. A testament that true progress demands vision, perseverance, and continuous striving.
6. At this pivotal juncture, we must re-examine how we define success. The triple bottom line — people, planet, and profit — must become central to our decision-making. In boardrooms and strategy meetings, we must ask not only “What is the return on investment?” but also “What is the return to society?”.
7. Islamic finance is uniquely positioned to bridge opportunity with need. Through Value-Based Intermediation (VBI), Islamic banks have channelled nearly RM62 billion in social financing, and RM17 billion in green financing, alongside RM184 million in social impact initiatives through zakat, sadaqah, iTEKAD, and waqf[6]. This is a strong foundation — but the road ahead calls for systemic adoption, deeper ESG integration, and measurable impact. The 2025 Sustainable Development Goals Report[7] reminds us that progress remains insufficient—the current pace of progress falls short of the 2030 vision, with persistent gaps in poverty and public health. We must renew our resolve — to act with urgency, unity, and responsibility as stewards of this planet and champions of a better future.
8. In line with the theme of “Bridging Tradition and Tomorrow”, I would like to reflect on the enduring wisdom of Ibn Khaldun, whose seminal work ‘The Muqaddimah’ offers insights that remain deeply relevant today. His reflections on economics, commerce, and Shariah law continue to shape our understanding of Islamic finance in meaningful ways.
First, he reminds us that economic prosperity must be grounded in moral integrity. Profit, in his view, is not merely a measure of gain — it must be earned with clarity of purpose and a deep awareness of its impact on markets, economies, and people. Trust and ethical conduct are not optional; they are essential to sustainable commerce.
Second, he highlights the intrinsic link between economic activity and social well-being. A strong economy cannot exist in isolation from the welfare of its people. It is our responsibility to ensure that the growth of Islamic finance translates into tangible social progress — that it serves not just markets or capital owners, but communities.
Third, he underscores the importance of entrepreneurship, skills development, and innovation in sustaining prosperity. Islamic finance must evolve to meet the diverse needs of our societies — empowering individuals, supporting enterprises, and creating opportunities across all segments of the population.
In this spirit, the iTEKAD initiative stands as a shining example of socioeconomic empowerment. Designed with care and purpose, it leverages Islamic social finance instruments to uplift micro-entrepreneurs — offering structured training, seed capital, and access to microfinancing. As of June 2025, over 10,000 participants have benefited. Some have transitioned from welfare recipients to business owners — generating income, creating jobs, and contributing to zakat[8]. This is the real power of purposeful finance: when good intentions are translated into action, prosperity circulates throughout the economy.
Throughout ‘The Muqaddimah’, Ibn Khaldun weaves his analysis with the concept of ihsan — the pursuit of excellence with a good conscience. This principle must guide our work. In every policy, every product, and every partnership, we must act with sincerity, wisdom, and a sense of responsibility — to our Creator, and to the communities we serve.
Ladies and Gentlemen,
9. The Prophet Muhammad sallallahu ‘alayhi wassalam once said, “The best of people are those who are most beneficial to others.”[9] These words are a timeless reminder of our shared responsibility — to lead not only with ambition, but with compassion and purpose. As we look ahead, let us recognise the pivotal role the financial industry plays in addressing the world’s most pressing challenges — from infrastructure and climate resilience, to ageing populations and the urgent need for inclusive innovation. In this regard, the efforts of regulators, industry leaders, and the MIFC initiative in fostering collaboration and unlocking new frontiers of value-based finance are both timely and commendable. These efforts must be supported, scaled, and amplified.
10. I call upon all stakeholders — policymakers, business leaders, philanthropists, and innovators — to forge bold partnerships and cross-border collaborations. Together, we can advance a global Islamic finance agenda that is principled, impactful, and inclusive. The challenges before us are significant. But so too are the opportunities to build resilient economies, uplift communities, and shape a future of finance grounded in ethical leadership and shared prosperity.
11. Over the next three days, I trust that the Global Islamic Finance Forum will be a space for meaningful dialogue, transformative ideas, and lasting partnerships. May this forum serve not only as a platform for progress, but as a catalyst for change. I wish all participants a productive, enriching, and inspiring experience ahead.
- The Prophetic Biography, Sirah Ibn Hisham. ↑
- Admiral Zheng He and Southeast Asia, Cambridge University Press and Southeast Asia in the Ming Shi-lu, National University of Singapore. ↑
- ICD-REFINITIV, Islamic Finance Development Report 2024. ↑
- IIFM Sukuk Report 2024. ↑
- The Sealed Nectar by Safiur Rahman Mubarakpuri. ↑
- Value-Based Intermediation Report, 2022. ↑
- United Nations, 2025. ↑
- Source: iTEKAD participating financial institutions and BNM, June 2025. ↑
- Hadith narrated by Ibn Hibban (No. 3289) and Al-Tabrani (No. 5787), graded as Hasan. ↑