UNHCR hosts a regional discussion on the role of Islamic Social Finance in addressing global displacement

Kuwait City, Kuwait, October 21st 2020: With global displacement now affecting one percent of humanity, according to UNHCR, TheUN refugee agency’s global trends report for 2020, humanitarian actors from the  Gulf Cooperation Council Countries (GCC) have come together to discuss new avenues for collaboration to help scale-up aid, both in the MENA region and globally.

The regional webinar, hosted yesterday by UNHCR and with participation Dr. Aize Dabsan Al-Qahtani, CEO for the Thani Bin Abdullah Foundation for Humanity, Mrs. Kawthar AlMusallam, Vice President of the Zakat House of Kuwait, Mr. Jamal Al Nouri, Chairman of Sheikh Abdullah Al Nouri Charity Society, touched on key avenues for Islamic social finance (ISF) to meet this goal, as well as discussed potential barriers to efficiently mobilize innovative and sustainable sources of humanitarian funding, such as Waqf.

Dr. Samer Hadaddin, Head of UNHCR’s Kuwait Office said: “The private sector, through philanthropic business leaders, socially responsible businesses, Islamic NGOs and financial institutions, is increasingly providing further support to mobilize networks and the business community around the cause of refugees that requires strategic attention and investment”.

“Islamic social finance tools can have a significant and sustainable impact on beneficiaries, especially considering the current global COVID-19 health emergency. UNHCR can learn from many institutions that have historically been distributing such funds, in return these institutions have the opportunity  to increase their positive impact and realize the sustainable development goals- noting that over 60% of refugees and internally displaced people come from countries within the Organization of Islamic Cooperation,“ Dr. Hadaddin added.

The role of Islamic social finance, especially in emergency times such as COVID-19, took centre stage during the discussions, with speakers closely examining ISF tools such as Zakat, Sadaqah and Waqf, which have enormous potential to be leveraged and scaled to deliver much-needed financing for humanitarian challenges such as the refugee crisis.

Islamic social finance, a form of social solidarity, was developed in adherence to the Sharia principles of socioeconomic justice, equality and collective prosperity. Gaining increasing prominence among the humanitarian community in considering its potential, sustainability, and impact.

“Through new models of cooperation and partnerships, such as strategic ISF alliances between local/ regional NGOs and international organizations, ISF can find ways to accelerate the use of philanthropic resources to address pressing issues across MENA, including refugees by increasing social investment in education, healthcare, shelter, livelihoods, clean water, and providing cash assistance for those most in need,” explained by Mrs. Kawthar AlMusallam, Vice President of the Zakat House of Kuwait.

In December 2019, the United Nation’s 2030 Agenda for Sustainable Development introduced an indicator framework dedicated to refugees. UNHCR has firmly committed to this agenda pledging to ‘leave no one behind’.

The UN Refugee Agency is working with governments and humanitarian partners to ensure that refugees and internally displaced people are included in national COVID-19 response plans and is expanding cash and other forms of assistance. But urgent and additional financial support is needed before the start of winter to help ensure that people can survive the season’s harsh conditions.