UNDP Highlights the Role of Islamic Finance and Innovative Financing at AidEx Geneva 2026

Geneva, Switzerland, October 2026 – The United Nations Development Programme (UNDP) participated in the Innovative Finance conference at AidEx Geneva 2026, one of the leading global events bringing together humanitarian and development actors to explore innovative solutions for financing sustainable development.

Representing UNDP, Muniruddeen Lallmahomood, Islamic Finance Portfolio Lead at UNDP’s Istanbul International Center for Private Sector in Development (ICPSD), joined experts from across the development finance ecosystem to discuss how innovative financing mechanisms can mobilize greater resources for development and help address growing global challenges.

During the panel discussion, UNDP highlighted the growing potential of combining commercial Islamic finance with Islamic social finance instruments such as zakat and waqf, alongside guarantees, concessional finance, and other catalytic capital mechanisms. Such approaches can help de-risk investments, unlock private sector participation, and create pathways that enable vulnerable communities to transition from receiving assistance to achieving economic self-reliance.

UNDP also emphasized that Islamic finance forms an integral part of the broader sustainable finance ecosystem, complementing impact investing, blended finance and green finance. By supporting sectors such as small and medium-sized enterprises, affordable housing, agriculture, renewable energy, financial inclusion and climate resilience, Islamic finance can help mobilize domestic and international capital toward national development priorities and the Sustainable Development Goals (SDGs).

Drawing on lessons from the Global Islamic Finance and Impact Investing Platform (GIFIIP), UNDP underscored the importance of building a robust ecosystem for Shariah-compliant impact investing. Experience has shown that transforming good ideas into investable opportunities requires more than access to capital. It demands enabling policies, trusted partnerships, impact measurement frameworks, strengthened institutional capacities and effective matchmaking between investors, enterprises and development actors. The discussion also highlighted innovative examples of Islamic capital market solutions, including the work of the International Finance Facility for Immunisation (IFFIm), which has mobilized US$750 million through sukuk issuances to support Gavi, the Vaccine Alliance. The initiative demonstrates how Shariah-compliant financing can accelerate access to life-saving vaccines, strengthen health systems and improve health outcomes for millions worldwide.

“Islamic finance offers more than an additional source of funding,” said Muniruddeen Lallmahomood.”Its principles of shared responsibility, inclusion and connection to the real economy make it particularly well suited to advancing sustainable development. By combining commercial and social finance instruments, we can create financing pathways that generate both measurable development impact and financial sustainability.”

The panel also explored increasing investor interest in opportunities that combine Shariah compliance with strong governance, transparency, measurable development outcomes and commercial viability. UNDP noted that collaboration between Islamic finance institutions, impact investors, governments and development partners remains essential to scaling innovative financing solutions that support sustainable and inclusive growth.

As global financing needs continue to grow, UNDP remains committed to advancing innovative finance solutions and strengthening partnerships that mobilize capital for people and planet. Through initiatives such as GIFIIP, UNDP continues to support the development of impact-oriented, Shariah-compliant investment opportunities that contribute to achieving the SDGs.

About UNDP ICPSD

The UNDP Istanbul International Center for Private Sector in Development (ICPSD) serves as a global policy center dedicated to advancing private sector engagement for sustainable development. Through its Islamic Finance Portfolio and the Global Islamic Finance and Impact Investing Platform (GIFIIP), ICPSD supports governments, financial institutions and development partners in leveraging Islamic finance and impact investing to advance inclusive and sustainable development outcomes.

About IFFIm

Since 2006, the International Finance Facility for Immunisation (IFFIm) has used innovative financing to frontload donor commitments and provide immediate funding for immunization programmes. Through its pioneering vaccine sukuk and bond issuances, IFFIm has raised capital from international and Islamic financial markets to support vaccine access, pandemic preparedness and stronger health systems in developing countries.