Our growing understanding of ESG (environmental, social, and governance) has transformed how global markets perceive business value. In tandem, though not necessarily in lockstep, the Islamic economy, too, has flourished into a multi-trillion dollar ecosystem that extends far beyond traditional Muslim regions. 

While these two behemoths have historically been viewed as separate, they are beginning to converge, and this has helped ESG gain momentum as investors and regulators tackle urgent issues such as climate change, social inequality and governance failures.

The intersection of these frameworks is attracting a global audience eager for a brand of finance that is focused on long-term well-being rather than short-term gains.

Islamic ethics and sustainability
Shariah law prohibits exploitative interest and practices that can harm individuals or society. It promotes principles like risk-sharing, fairness, transparency and genuine economic activity. 

As highlighted in financial economist Kabir Hassan’s research on Islamic finance and sustainable development, these principles foster an economic vision focused on justice and community welfare. 

Just like ESG’s environmental criteria strive to protect our planet, Islamic principles actively discourage waste, pollution and anything that threatens long-term ecological balance. Furthermore, ESG’s social criteria focus on inclusion, fair treatment and community benefits aligns perfectly with Islamic values of fairness and mutual responsibility. When it comes to governance, the emphasis is on accountability, transparency, and ethical leadership; these too are principles that are central to Islamic decision-making.

The CFA Institute has even referred to Islamic finance as an 'ethical bridge' that connects traditional responsible investing with Shariah-oriented expectations. 

Markets showing rapid convergence
Recent Islamic Finance Development reports highlight a significant increase in sustainability-linked Islamic instruments, especially green and social sukuk, enabling governments and corporations to raise funds for renewable energy projects, social housing, sustainable transport and other initiatives, whilst adhering to Shariah compliance. 

Countries like Malaysia, Indonesia and the UAE are leading the way in this area. The World Bank’s research on Islamic green finance highlights how these markets have built the necessary ecosystem, regulations and investor confidence to issue substantial amounts of ESG sukuk. Their experiences demonstrate that Islamic finance can serve as a powerful catalyst for climate action and social development. 

Guidance from the Islamic Development Bank, the London Stock Exchange Group and the International Capital Market Association has paved the way for structuring green, social and sustainability sukuk. The Islamic Development Bank has also introduced its own Sustainable Finance Framework, demonstrating how Islamic institutions can integrate ESG thinking into Shariah-based mandates while ensuring tangible impact. 

Beyond sukuk, the integration of ESG is also making significant strides in Islamic asset management and Takaful as well. Recent studies on Islamic investment screening reveal a growing trend among asset managers to blend ESG metrics alongside traditional Shariah screening. 

Challenges to overcome
One major concern to consider, however, is that of greenwashing and superficial implementation. Some Islamic financial products have faced criticism for mimicking conventional instruments without genuinely fulfilling Shariah objectives. 

Another challenge we face is standardization. ESG frameworks vary across regions and merging them with Shariah requirements can lead to confusion. Additionally, reporting frameworks and impact measurement tools differ in their maturity. 

The World Bank and Islamic Development Bank’s climate finance analysis indicates that many Islamic markets still lack the institutional capacity to properly assess environmental performance or track emissions. Without reliable and consistent data, investors find it tough to evaluate the true impact of their investments. 

A landscape of opportunity 
Despite these challenges, however, the opportunities outweigh the obstacles. The Islamic economy’s focus on ethical trade, social justice and environmental stewardship lays a solid groundwork for a future driven by sustainability. Data from a joint report produced by the Islamic Corporation for the Development of the Private Sector and the London Stock Exchange Group indicates that investors are increasingly interested in products that align values with performance. 

In emerging markets, Islamic ESG instruments are seen as a way to draw in new capital for national development. Fintech innovations are bridging gaps in transparency, access and compliance. Plus, the philosophical connection between ESG and Maqasid al Shariah hints at long-term synergy rather than just a passing trend. 

As global stakeholders look for financial models that safeguard both people and the planet, the Islamic economy stands out as a valuable contributor. This isn’t just a strategic opportunity; it is also a true reflection of Shariah’s goals, echoing the Qur’anic call for justice and moral responsibility. 

A relationship with long-term promise 
The relationship between ESG and the Islamic finance is still evolving, but the outlook is promising. It reflects a wider shift in global finance towards purpose and accountability.

By embracing this connection, the Islamic economy can pave the way for a financial future grounded in shared prosperity and sustainability. 

Islamic finance has segued from a once-nuanced offering into the mainstream, helping unlock access and encourage inclusion for more than two billion Muslims the world over. 

Islamic fintech, in particular, holds tremendous potential and ability to draw a vast majority of Muslims into the financial ecosystem, all while spurring innovative business models and unlocking new revenue streams. 

Leveraging innovations such as open banking not only helps create new retail offerings such as mobile apps for Zakat calculations, Waqf management and inheritance planning, but also help broaden the product gamut for corporate transactions and business banking. 

“Islamic financial solutions today require three capabilities: accuracy in Shariah classification, real-time validation of customer profiles, and seamless integration with banks and Shariah auditors," Faysal Ghauri, founder and CEO of Halal Payments Network, tells Salaam Gateway. 

"Open banking enables this by automatically mapping all customer bank assets; screening financial activities; creating digital Islamic marketplaces that connect banks, Takaful operators, Islamic wealth advisory firms and regulatory bodies; and powering Islamic financing models using transparent API integration with core banking and treasury systems.” 

Open banking enables authorized third-party providers to access customer data in a secure and standardized format, through application programming interfaces (APIs). 

Islamic fintechs could use open banking and APIs to integrate with Islamic lenders, melding the robustness and legitimacy of banks with the agility and ingenuity of emerging tech.  

“Open banking is not only about digital access to financial data. Its real value lies in how Islamic fintech can use this access to embed Shariah principles in digital services. With secure APIs, Islamic fintechs can deliver financial products in a structured, compliant, and digitally measurable way,” adds Ghauri.

Broadering the product portfolio   
The merits of open banking are visible in its ability to integrate Islamic profit-loss-sharing (PLS) products such as Musharakah and Mudarabah with innovative software that could ease accounting and cash flow management for lenders.

Mudarabah is a profit-and-loss arrangement whereby the investor provides the capital, and the entrepreneur runs the business, with profits shared according to pre-agreed ratios and losses borne solely by the financier. In Musharakah, all parties contribute capital and share profits and losses. 

Banks gravitate towards Ijarah (rent-based contracts) and Murabahah (purchase-based contracts) primarily due to the high degree of monitoring required for contracts such as Musharakah and Mudarabah. Lenders, in general, find it tedious to maintain consistent oversight to gauge performance markers of a business.   

Islamic fintech can help bridge the gap by connecting business financing with cash flow management software, enabling real-time monitoring of a business’s performance, expenses and cash flows – the degree of oversight necessary for the implementation of profit and loss contracts. 

“Historically, when Islamic banks wanted to do more Musharakah and Mudarabah, the combination of information asymmetry, monitoring cost and accounting complexity has made them look 'messy' on the balance sheet compared with Murabahah and Ijarah. Some complained that profit–loss sharing financing can drag on headline profitability metrics, which naturally pushes management back towards debt-like contracts,” Najmul Haque Kawsar, senior consultant at DinarStandard, tells Salaam Gateway. 

“Open banking and API-first architectures change that equation: they turn what used to be opaque, manually monitored PLS exposures into data-rich, continuously observed relationships that can be priced, monitored and reported almost like traded assets.”

Growing trend
The trend is visible - Fintech platform Tarabut partnered with Saudi Arabia’s payment solutions provider Geidea to explore flexible financing solutions to shed barriers such as protracted approval processes or complex credit checks. Bahrain Islamic Bank also inked an agreement with Tarabut to develop a financing solution that helps SMEs and corporates access funding based on their daily point-of-sale transactions.

“Conceptually, that is exactly the type of data backbone a Musharakah working-capital facility would need: the bank’s profit share can be linked to actual turnover and margin patterns, and covenants can be automated around drops in sales, chargebacks or average ticket size,” adds Kawsar.

“Instead of sending auditors into the business once a year, the bank and fintech can watch the health of the venture in real time, making it far more practical to structure the exposure as genuine risk sharing rather than synthetic debt.” 

Modern banking platforms like Mambu and Tuum are offering modules for Islamic funding - such as Mudarabah and financing - such as Murabaha and Tawarruq (sale and resale transaction), deploying APIs and tools to launch Shariah-compliant accounts, loans and investment products.

Tuum’s cloud-native suite also automates Islamic profit-sharing and Tawarruq contracts to enable real-time compliance with AAOIFI standards. 

“For an Islamic bank, that means you no longer need a bespoke back-office for every PLS product; Musharakah or Mudarabah structures can sit on standardised modules, with APIs exposing profit rates, accrued shares and pool performance into mobile apps, treasury systems and even third-party wealth platforms,” adds Kawsar. 
 

Remittances are among the most important financial lifelines for developing economies. Not only are they vital for household incomes, but also for macro-economic stability, serving as a major source of foreign exchange and often outweighing foreign direct investment or development aid. According to the World Bank’s Migration & Development Brief (June 2024), remittance flows to low- and middle-income countries reached $647 billion in 2023 and as per the most recent estimates, increased to $685 billion in 2024.

The difficulty of measuring remittances

Measuring remittances remains a major challenge because much of the money moves through informal or hard-to-track channels. Official data typically record only a fraction of total transfers, as reliable and timely reporting systems are still limited. In most countries, the responsibility for collecting and publishing official remittance data is defined by national law and typically lies with the central bank. These figures are compiled as part of the Balance of Payments (BoP), with the central bank’s statistics division setting reporting rules for individuals, businesses, and financial institutions. To ensure accuracy and consistency, central banks collaborate closely with other government bodies involved in economic data, including national statistics offices, ministries of finance, and other relevant agencies and stakeholders.

However, central banks struggle to keep pace with rapid changes in financial markets — from new money transfer operators to digital platforms like mobile wallets, which complicate the process of updating reporting frameworks and harmonizing them with anti–money laundering and transaction reporting rules.

Adding to this complexity is the diversity of transfer methods: funds can move through formal systems, such as banks and licensed money transfer operators, or informal networks, including hawala, personal cash deliveries, and in-kind exchanges. This patchwork makes it difficult to accurately capture the true scale of remittance flows, especially in the least developed countries, where limited resources hinder the development of advanced monitoring systems.

Methodology behind using 2023 data 
In compiling the list, we kept our ranking firmly anchored in the 2023 calendar-year figures for a few important reasons. First, the World Bank provides a consistent and comparable dataset for that year, allowing apples-to-apples comparison across OIC nations. Second, while many countries now publish year-to-date or fiscal-year-to-date data for 2024, full-year 2024 figures are still being finalised, meaning there is potential for revision or inconsistency. Third, in some regions—such as the Middle East and North Africa—the World Bank itself has flagged that 2023 flows were under-recorded due to parallel foreign exchange markets and informal channels, meaning 2023 remains the latest robust benchmark. 

When presenting the ranking, keep in mind that the figures provided are estimates and represent a trend. According to the World Bank brief, remittances to South Asia are expected to grow by 11.8% in 2024, driven by countries such as Pakistan and Bangladesh. 

The following ranking identifies the Top 10 OIC remittance-recipient countries by volume, based on the most reliable data for the calendar year 2023, and it also shows the emerging trend for 2024.

1. Pakistan — $27.0 billion 
Pakistan remains the largest remittance recipient among OIC nations in terms of volume, as highlighted in the World Bank’s Migration & Development Brief 40. Flows mainly originate from Pakistani workers in the Gulf region, the UK, and North America. The remittances were further expected to increase to $28 billion in 2024. 

2. Egypt — $24.0 billion 
Egypt remains the top recipient in the Arab region, according to the World Bank’s December 2023 brief. However, the Bank warned that official 2023 inflows may be underreported due to informal foreign exchange channels. The 2024 estimate/partial data places expected remittances for 2024 at approximately $22.7 billion, according to World Bank data published in June 2025.

3. Bangladesh — $23.0 billion 
While Bangladesh’s final 2023 figure is still subject to revision, the World Bank projected around $23 billion in remittances for that year. The flows are driven largely by Bangladeshi workers in the Gulf and Southeast Asia. 

4. Nigeria — $19.5 billion
Nigeria tops remittance inflows in Sub-Saharan Africa, according to the country press, citing the World Bank. The Nigerian diaspora in Europe and North America provides a substantial share of foreign receipts.  The 2024 estimate/partial data places expected remittances for 2024, show a modest growth forecast for expected remittances in 2024, aligning with global trends. However, no full-year national figure has been published yet.

5. Uzbekistan — $16.1 billion 
Remittances to Uzbekistan remain high, largely from workers in Russia and Central Asia. The 2023 estimate was about $16.1 billion. The 2024 estimate/partial data suggest that expected remittances for 2024 are expected to stabilize or mildly recover; however, full-year data have not yet been published.

6. Indonesia — $14.47 billion
Indonesia’s remittance inflows reflect millions of migrant workers across Malaysia, Saudi Arabia, and Taiwan. The World Bank’s WDI dataset shows approximately $14.5 billion for 2023; some sources project more than $16 billion for 2024.

7. Morocco — $11.8 billion
Morocco remains the second-largest remittance recipient in North Africa after Egypt, with major flows from Moroccans working in France, Spain, and Belgium. There is no 2024 estimate/partial data as a complete full-year figure has not been made public yet.

8. Lebanon — $6.7 billion
Despite its economic crisis, Lebanon’s remittances remain substantial, representing more than 30% of its GDP.  For 2024, anecdotal data suggest strong flows via the Lebanese diaspora, but no consistent national full-year figure has yet been published.

9. Jordan — $4.48 billion
Jordan receives significant remittances from its citizens abroad, particularly in the Gulf and the United States. However, no full-year 2024 figure has been published yet.

10. Tunisia — $2.87 billion
Rounding out the top ten is Tunisia, with remittances largely from Tunisians in France, Italy, and Germany. These flows often exceed tourism receipts in years of economic instability.

Islamic equity screening is at heart of halal investing - it demystifies a permissible stock, shapes how Shariah-compliant funds and indices are constructed, and underpins investor confidence across a global equity market worth around $6 trillion in assets.

At its core, screening occurs at the intersection of Islamic jurisprudence, accounting practices, and market mechanics. While most frameworks share the same foundational principles, differences in interpretation and implementation remain, raising critical questions pertinent to consistency, transparency and the overarching purpose of the underlying investment.

Common ground, diverging interpretation
Globally, Islamic equity screening is governed by a handful of key frameworks including the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in Bahrain and Malaysia’s Securities Commission (SC), as well as rules devised by major stock index providers like S&P Dow Jones, MSCI or FTSE.

Each framework adopts a similar two-pronged approach, which includes business activity filters that exclude impermissible sectors such as gambling, conventional finance, alcohol and pork. It also consists of financial ratio filters that assess a company’s leverage - or the amount of interest-bearing debt versus its equity structure - as well as determinants such as cash in the firm’s conventional accounts, or any accrued impure income. 

“The majority of Shariah screening methodologies, as far as business activity filters are concerned, are largely in conformity,” says Faraz Adam, a Shariah scholar and founder of Amanah Advisors, a UK-headquartered Shariah advisory firm. 

“They are consistent and cover almost all the same sectors and activities.”

However, subtle differences emerge, he notes, in financial filters. “Most standards overlap on key areas such as interest-bearing debt, receivables, and impure income. The main points of divergence tend to appear in the liquidity filter and ratio thresholds.”

For example, MSCI’s Islamic Index Series uses total assets as the denominator for its financial ratios, whereas S&P Dow Jones applies a 24-month average market capitalisation, capping both debt and interest-bearing items at 33% of that base.

Malaysia’s SC adds a 20% benchmark for mixed activities. For example, a hotel is Shariah-compliant but derives minor revenue from non-halal products.

“Most discrepancies come down to methodology and interpretation,” says Saad Malik, co-founder of Zoya, a Shariah-compliant stock-screening app. “The results can vary based on which ratios are used, how they’re calculated, and how certain revenue streams are categorised.”

While the differences may appear to be minor, they can alter a stock’s Shariah-compliance classification - an investable security certified halal by one platform may be shunned by its peer as impermissible, often creating confusion for investors scuttling between platforms. 

According to the London Stock Exchange Group, more than 9,000 stocks have been certified as Shariah-compliant globally after screening over 30,000 listed companies. 

Pragmatism over perfection
One common criticism of Shariah screening that has remained consistent over time is the inclusion of companies that may have indirect exposure or links to impermissible activities or products.

Dr Mohammad Akram Laldin, a Shariah scholar and professor at INCEIF University in Malaysia, argues that such concerns misconstrue the pragmatic spirit of Islamic finance.

“It’s almost impossible to find a company that is 100% halal,” he says. “That’s why scholars have set thresholds for non-permissible income and activities. These parameters reflect a pragmatic, gradual approach. If we restricted ourselves to companies that were perfectly pure, the investable universe would be extremely limited.”

These thresholds should evolve with markets, he adds.

“Ideally, they should remain dynamic, reviewed as the market evolves, so that one day, as more companies align with Shariah [principles], the standards can become even stricter.”

This flexibility is what keeps Islamic investing viable in global capital markets allowing for ijtihad or independent reasoning, while maintaining allegiance to Shariah principles.

Ambiguity, institutional complexity erode sheen 
A key element of Shariah compliance is purification, the cleansing of impure income (such as interest) through charitable donation. But the question of who bears responsibility for purification remains contested.

In practice, some funds purify at the institutional level and disclose the amount per share; others leave it to investors to calculate and donate themselves. Major index providers, like MSCI, incorporate purification into their total-return methodology, while firms like HSBC Asset Management conduct an annual Shariah audit to identify and donate prohibited income to charity.

The challenge is ensuring transparency. As retail participation grows through digital platforms, so does the appetite for information, from Shariah-compliant securities to the management of purification.

For global asset managers, balancing credibility, consistency, and cost is another challenge.

Sefian Kassem, global head of ETF & indexing investment specialists at HSBC Asset Management, says the firm’s suite of Shariah-compliant exchange-traded funds (ETFs) and index funds rely on third-party benchmark indices. And while it is beneficial to have standards, they must be legally and commercially viable, too.

“Global standards are helpful as baselines,” he says. “But the flexibility to apply local standards is important because Shariah boards in different jurisdictions can apply different standards according to local preferences.”

Furthermore, rules for managing a company’s transition from Shariah complaint to non-compliant and vice versa exist, too. “These are embedded within the index methodology and are ratified by both the relevant index providers’ Shariah board and HSBC's Shariah board,” he says. 

Active managers also face their own hurdles. Monem Salam of Saturna Capital says data gaps often make Shariah screening more art than science. “Often companies don’t report interest income or other metrics required for screening.”

“As active managers, we can usually work backwards from public accounts, but this is more difficult for passive managers,” adds Salam. 

Active asset management focuses on outperforming a benchmark such as the S&P 500 Index, with managers actively choosing investments. Conversely, passive management aims to match the market’s returns by replicating it. 

Restoring investor confidence
For all its progress, one of the greatest Shariah screening challenges remains that of trust and comprehension.

“Better understanding of portfolio construction by fund managers and investors would help the industry move forward,” Rizwan Malik, head of Islamic Finance Centre at Bahrain Institute of Banking and Finance tells Salaam Gateway. 

“More importantly engagement between fund managers and underlying companies should increase thereby making the data more accessible.”

Others see the diversity of approaches as a reflection of Islam’s intellectual richness and tradition. 

“Differences are not a weakness,” adds Zoya’s Malik. “They show that Shariah finance is living and adaptive.” 
 

We speak with Umar Munshi, managing partner at Hasan.VC, a venture capital fund, on the purpose of impactful investing, the value frontier technologies can help unlock and the future of the alternative finance ecosystem.

How do you measure the social impact of HASAN.VC’s investments beyond profitability, to align with the ethical values embedded in the halal ecosystem? 

We have several data points and barometers, which at present, are relatively qualitative, and are spread across the different types and stages of startups we support.  We are very focused on grooming the startup founder community, as well as pay close attention to emerging markets. 

We measure impact across two diverse yet cardinal principles – first, the religiosity of our investments, and their impact on the lives of Muslims, elevating the community in practice and progress. 

With Shariah compliance as a starting point and initial baseline, we focus on tech startups that hold the potential of impacting Muslim consumers. We prioritise enterprises that are halal-centric and impact-driven as well as look into apps such halal travel and tourism services that beckon people of all faiths. 

From a broader lens, we measure impact of technologies and startups that have a purposeful impact on the wider community, help improve employment, create value and efficiency, and enhance literacy and education.  

What opportunities do you see in the $2 trillion halal market, and how is HASAN.VC positioned to capitalize on untapped segments? 

There are several gaps and pain points to fill among practicing Muslim communities, where early-stage startups can strive and offer pragmatic solutions to real-world challenges. In an AI-assisted and -dominated world, I expect an explosion of new startups that will spring up, looking to fill the lacunae and ease the interface between technologies and communities. 

Businesses that are established with a higher purpose of dispensing value and helping curate products and cultures around the core principle of altruism and community, yield tangible benefits. New-age and new-form businesses rooted in halal values that can help alleviate real-world problems remain on Hasan VC’s radar. 

What role do you envision for blockchain and decentralized finance (DeFi) in expanding the halal economy’s digital infrastructure?

Blockchain and decentralized finance (DeFI) can and ideally should, form the backbone of the halal economy infrastructure, which includes, among other elements, payment remittance and market organization components. 

Beyond infrastructure, these frontier technologies can play a critical role in product innovation and delivery. 

The payment process consists of several intermediaries, which render the entire value chain costly. High execution costs coupled with friction among stakeholders, and a dearth of transparency and interoperability has prompted  fintech companies and global think tanks to encourage disruption to the conventional model. 

In the halal economy space, this is especially important because the large majority of natural markets - that constitute outsized Muslim populations - face payment challenges and thus offer huge opportunity for technologies such as blockchain and DeFi to enable seamless domestic and cross-border P2P payment transactions. 

Blockchain and DeFi can also simplify and foster fundraising, undergirding companies and projects to raise capital effectively. Decentralized autonomous organizations can help set the rules of engagement and transparency, streamlining and automating the supply chain.

DeFi can also help tokenize real-world assets as well as physical and virtual assets, offering a new conduit for revenue.

What is the future of the alternative finance market?

The way people will invest and alternative finance markets will function in the future will be very different from how they are today. 

There is a plethora of opportunities in the alternative ecosystem, including the tokenisation of real-world assets, democratising access, enabling wealth creation and allowing people to own a fraction of assets which were otherwise unavailable.

This configuration can be done in a Shariah-compliant manner, within the bounds of an ethical framework, operating on moral structures and intent. Governance systems such as DAOs and smart contracts are helping build trust, forging ways in which consumers can transact in a frictionless, low-cost manner, with a user-friendly interface. 

AI can work as a huge catalyst, processing colossal amounts of data to derive sound investment and pricing decisions as well as curate bespoke investment portfolios based on an individual’s risk profile and income levels. 

I expect a raft of investment options ready to be democratized, enabling alternative finance markets to become the linchpin of tomorrow’s financial landscape. 

There’s a familiar playbook in tech: go big, open the gates, capture as many users as possible. And if growth stalls? Open wider.

But not everyone plays by that rule.

In 2014, OnePlus launched its first smartphone to the public, with a catch. You couldn’t buy one unless you were invited. It wasn’t a gimmick. It was a signal. If you were in, you were early. 

The result? 1.5 million people signed up for a chance to join. 

The invite wasn’t a barrier as some may think. The invite worked as a bond.

From social platforms to investment collectives, we’re seeing a quiet resurgence of this model. Not because exclusivity is trendy, but because intentionality builds stronger communities than scale ever will.

What open systems often overlook
Openness sounds noble and feels democratic. But the most ‘open’ systems often suffer from a distinct problem: disconnection.

We’ve seen this in online communities where bots outnumber humans; on platforms where every new face feels like just another name. In financial cooperatives, the few carry the weight of many. When anyone can enter, no one feels responsible.

Economist Christian Hilber wrote in 2007 about the ‘free rider problem’ when individual participation often swings inversely to group size. As the group swells, sole participation begins to dwindle.

In community finance, the drop isn’t theoretical rather practical. It’s the difference between people who show up and those who don’t.

Access coupled with purpose
An invitation changes everything.

It suggests that someone thought of you. Trusted you to contribute. It creates a sense of belongingness that no marketing campaign can replicate.

Muslim mutual aid groups have practiced this for generations. In West Africa, rotating savings circles known as tontines bring together trusted individuals who pool funds and take turns accessing the money. 

In Southeast Asia, ‘gotong-royong’ is a cultural practice of mutual help, where communities mobilize to support each other through labour, resources, and time through a tangible sense of solidarity. 

The value is in who is sharing, and why.

Even in digital spaces, we’re learning that healthy communities scale intentionally. Early decentralized autonomous organizations ( DAOs), recognized this. 

Built on blockchain, DAOs are member-governed groups that operate without centralized leadership.

They rely on collective voting and transparent rules written into code, analogous to legacy cooperatives, invite-only forums, and curated Telegram groups where one introduction eclipsed 10,000 cold followers.

A silent shift in our circle
When we launched The LifeDAO, our doors were open. We welcomed anyone aligned with our values of mutual care and ethical finance. 

Then something unexpected happened: 500+ early members didn't just join for the sake of joining. They stayed, contributed and helped shape a financial safety net for one another.

This prompted us to question: "How do we protect what makes this special?" 

So, yes, we have begun transitioning into a gated model. Quietly and carefully. Because this was never meant to be another product. It was always a circle, one that holds better when you know who’s inside it.

Referrals matter, as do in-person events, waitlists, and whispers passed between people who get it.

We’re not the first to do this, and we won’t be the last. But as someone who’s spent years building community-based finance systems, I believe this: open access might get you numbers, but trust is what makes them count.

Quality over quantity 
Being selective doesn’t mean being elitist. It means caring enough to curate. Building systems where people don’t just sign up, they show up, especially when it matters.

And for those watching this shift and wondering if the circle will ever widen again, I’ll say this: the best communities are built by those who enter with purpose, not pressure.

So, if you receive an invitation in your inbox or a DM asking, “Hey, have you heard of this?”, don’t ignore.

It might just be your chance to step through the door.

Sharene Lee is the chief operating officer & co-founder at Takadao

As Syria emerges from a 14-year-long conflict that has decimated its economic and social structure, the country continues to face several challenges.

A precarious security situation, damaged infrastructure and institutions hollowed out by years of corruption and international sanctions have dealt a serious blow to its economic progress.  

Yet amid the devastation, there are modest signs of change. A new administration has emerged, signalling an interest in trade and investment, and with a population of around 25 million, of which Muslims form an overwhelming majority - Islamic finance could play a meaningful role in the country’s growth. 

“A phased and strategic approach is essential for the development of a functional Islamic finance sector in Syria, one that establishes a strong foundation while taking into account the country's challenges,” says Dr. Abdelilah Belatik, Secretary General at General Council for Islamic Banks and Financial Institutions (CIBAFI).

Top-tier push
Following the ouster of erstwhile premier Bashar Al Assad in December 2024, Syria’s new administration has pledged to support a liberalised, market-oriented economy and integrate Islamic finance into its recovery strategy.

Weeks into taking office, the President Ahmad Al Shara-led government announced that Islamic banking would form a core part of its financial sector.

“Islamic finance is clearly a priority for the new Syrian government,” says Najib Al Aswad, managing partner at Shariah Audit Group, a UK-based Islamic finance consultancy.

“One of the key reforms introduced recently was the approval of Islamic windows, allowing conventional banks to offer Shariah-compliant services.”

Of the fifteen privately licenced banks in Syria, four are Islamic (Cham Bank, Syria International Islamic Bank, Al Baraka Bank and mostly recently National Islamic Bank).

Meanwhile, Central Bank data suggest that private banking assets are close to $3.5 billion, the World Bank said in a July report. 

There is a stated desire within the government to develop a clear, overarching strategy, identifying priorities and gaps in the sector, adds Al Aswad. 

“As part of this, the authorities are revisiting the role and structure of Syria’s central Shariah board. While such a board previously existed, its mandate and scope are now under review to ensure it can support the sector more effectively.”

Other reforms include a flexible exchange rate system, permitting the use of foreign currencies (like the US dollar) as well as proposals for a new tax framework. 

Beth Morrissey, managing partner at Kleiman International Consultants, says the re-opening of the Damascus Securities Exchange, which hosts a Shariah index, is widely viewed as a major achievement.  The bourse signed a preliminary agreement with the Saudi Tadawul Group last month to enhance cooperation. 

“There is vast scope for both conventional and Islamic finance for the entire economy and I expect the use of Islamic financing tools will expand as the overall financial sector recovers and begins to develop,” adds Morrissey.

In August 2024, Syrian authorities finalised legislation on sovereign sukuk issuances, following an earlier directive to enable domestic Islamic lenders to issue them. In a post recovery situation, Belatik believes that regional collaboration and sukuk issuance for infrastructure projects should be pursued to attract foreign direct investment. 

“By creating enabling conditions for cross-border partnerships with established Islamic financial institutions, Syria can access much-needed capital for rebuilding public infrastructure,” he says.

Reintegration, personnel challenges stymie sector growth
The US, UK and EU removed long-standing sanctions on Syria in May, marking a watershed moment for global economic reintegration. No sooner had the sanctions been lifted than Syria conducted its first post-conflict international bank transfer via the SWIFT system. 

Despite the momentum, challenges continue to plague the system. Jihad Yazigi, a visiting fellow at the European Council on Foreign Relations, notes that despite the sanction ease, a key challenge is Syria’s presence on the Financial Action Task Force grey list, which relates to concerns around anti-money laundering and counter-terrorism financing standards. 

Morrissey echoes the concern. “Reintegration with the banking system requires upgrading rules and regulations as well as Central Bank oversight, which will not happen quickly. I believe they have started down the right path, but it will take time. The system will deepen more broadly when remittances are channelled through the formal system.”

In addition to security challenges, stakeholders highlight critical factors such as the lack of financial literacy and inadequate human capital as deterrents to sector progress. 

“Local expertise is limited and needs to be developed in all relevant areas. Certainly, regional support and partnerships are crucial to provide the expected levels of technical know-how,” says Mohammad Majd Bakir, director, Professional Standards Development at Bahrain-headquartered AAOIFI.

“The ordinary customer and stakeholders dealing with Islamic financial products and services lack proper familiarity. I do think that increasing awareness amongst these ranks would improve the levels of trust in and turn out to the various types of Islamic financial service offerings.”

The ‘Gulf’ factor 

Despite challenges, Syria can leverage Islamic finance in terms of trade and investment. 

“Syrian banks with ties to solid regional banking groups are best positioned to build on their groups’ operational capacity and financial resources to restore key banking services, starting with correspondent banking relationships,” the World Bank report said. 

Yazgi, adds that most Islamic banks in Syria are majorly owned by Gulf institutions, which offers them a vantage point as the country seeks to deepen economic and trade ties with the Gulf in coming years.  “Alongside Turkey, the Gulf is expected to be a primary source of capital and trade for Syria.”

Commercial Bank of Kuwait owns a 32% stake in Syria’s Cham Bank while leading shareholders of Syria Gulf Bank reportedly came from Gulf countries. Al Baraka Syria is also a unit of Bahrain-based Albaraka Banking Group.

“Syria’s membership in the Islamic Development Bank (IsDB) has been reinstated, and in light of improving regional political ties, countries such as Qatar, Saudi Arabia, and the UAE are reportedly exploring the use of Islamic finance as a way to re-engage with Syria,” says Al Aswad.