Islamic Finance and Impact Investing

Training Programme

Jakarta, 10-11 July 2019

 GLOBAL ISLAMIC FINANCE AND IMPACT INVESTING PLATFORM (GIFIIP)
TRAINING PROGRAMME

IMPACT INVESTING FOR THE SUSTAINABLE DEVELOPMENT GOALS (SDGS): A NEW CHAPTER FOR
ISLAMIC FINANCE

Background
Impact investing and Islamic finance seek positive social impact alongside financial return. proven itself as an
important source of funding the SDGs. The shared moral and social values, principles and impact driven
ambitions of Islamic finance and impact investing position Islamic finance as a good example of innovative
financing for the Sustainable Development Goals (SDGs). UNDP’s IICPSD and the Islamic Development Bank
(IDB) established the Global Islamic Finance and Impact Investing Platform (GIFIIP) in 2016 to position Islamic
finance and impact investing as leading enablers of SDG implementation around the world.

Islamic Finance and Impact Investing Training Programme

GIFIIP’s Islamic Finance and Impact Investing Training Programme aims to support Islamic financiers and
impact investors build capacity for seizing new investment opportunities in sustainable development area.
The programme is structured as a rigorous technical modular seminar explaining key concepts and recent
developments in impact investing and Islamic finance, describing how impact investors and Islamic financiers
can work together within a win-win framework to achieve the Sustainable Development Goals (SDGs) and
showcasing best practices and potential investment opportunities in these fields.

Expected Outcomes
Upon completion of the training, the participant will learn how to:
• Identify Shariah compliant impact investing opportunities
• Apply Islamic financial instruments for impact investing activities
• Screen Shariah compliant deals and manage the pipeline
• Mitigate potential risks
• Measure the impact

Target Audience
Technical experts, innovation teams and fund managers from Islamic finance banks, participation banks,
development banks, private equity firms, venture capital firms, fintech companies; representatives from
development organizations, regulatory and governmental bodies on development, private sector
Islamic Finance in Indonesia
Indonesia is hosting the world’s largest Muslim population. Indonesia is home to 225 million Muslims, which
corresponds to 13% of the all Muslims in the World. Although having the largest Muslim population,
Indonesia’s Islamic capital markets remain considerably underdeveloped. The latest Global Islamic Finance
Report (GIFR) ranked Indonesia 6th regarding the country’s state of Islamic banking and finance and industry
leadership. The share of Sharia complaint assets in Indonesia is only 5.3% in Indonesia. Indonesia has a huge
potential for Islamic finance that is waiting to be bolstered considering the huge Muslim population and low
levels of engagement in Islamic finance.

Training Modules
• 1st Module: Impact Investing: The Role of Financiers and Investors in Development
• 2nd Module: Impact Measurement and Management
• 3rd Module: Mobilizing Islamic Finance for Impact Investing: Managing the Pipeline
• 4th Module: Islamic Financial Instruments and Contracts for Impact Investing
• 5th Module: Risks and Opportunities
Please see the content of the modules below in the Annex.

Agenda
DAY 1 (10 July 2019)
8:30 – 9:00 Registration
9:00 – 9:20 Welcoming Remarks
9:25 – 9:45 Opening Session: The Structure of the Programme
9:45 – 10:00 Coffee Break
10:00 – 12:00 1st Module: Impact Investing: The Role of Financiers and Investors in Development
12:00 – 13.00 Lunch
13:00 – 15:00 2nd Module: Impact Measurement and Management
15:00 – 15:30 Coffee Break
15:30 – 17:30 3rd Module: Mobilizing Islamic Finance for Impact Investing: Managing the Pipeline
17:30 – 17:45 Wrap-up Session
DAY 2 (11 July 2019)
9:00 – 10:00 Presentation and Discussion on Indonesian Case of Green Sukuk
10:00 – 12:00 4th Module: Islamic Financial Instruments and Contracts for Impact Investing
12:00 – 13:00 Lunch
13:00 – 15:00 5th Module: Risks and Opportunities
15:00 – 15:30 Coffee Break
15:30 – 16:30 Wrap-up and Closing Session
Annex
Module 1: Impact Investing: The Role of Financiers and Investors in Development

Introduction This module sheds light on the practice of impact investing and how it relates to
Islamic finance and SDG achievement.
The purpose of this module is to:
• Define the impact investing ecosystem and its significance for SDG
achievement
• Identify the key players/actors in the impact investing landscape from the
supply and demand sides
• Pinpoint the similarities and convergence between Islamic finance and
Purpose
impact investing
• Explain the role of Islamic finance in impact investing and SDG
achievement
• Explore the opportunities in a collaboration between Islamic finance and
impact investing for SDG achievement
This session covers the following topics:
• The impact investing ecosystem and its contribution to SDG achievement
• Differentiation between SRI and impact investing
• Main players in the impact investing ecosystem from supply and demand
sides
• Drivers behind impact investing strategies
• Prospective outcomes of impact investing in terms of financial, social and
In this session
environmental benefit
• Importance of impact measurement to align growth strategies
• Convergence between Islamic finance and impact investing
• The role of Islamic finance in impact investing and SDG achievement
• Blending Islamic finance resources for impact investing and SDG
achievement

Mr. Gokhan Dikmener is an international development economist with more than 15 years of experience. He
works as a Technical Specialist for UNDP Istanbul International Center for Private Sector in Development
(IICPSD) and coordinates the research and development activities on Islamic finance-based impact investing
under the Global Islamic Finance and Impact Investing Platform. He is the lead author of “I for Impact: Blending
Islamic Finance and Impact Investing for the Global Goals”. He also leads the activities on the private sector
led skills and workforce development. Before joining IICPSD, Mr. Dikmener managed the regional “Growing
Inclusive Markets Initiative in Eastern Europe and CIS” and provided technical advisory to UNDP country offices
on inclusive market development. Gokhan Dikmener is an economist by training and holds an MA degree in
International Relations from the Johns Hopkins University School of Advanced International Studies (SAIS) with
a concentration on international development.
Module 2: Impact Measurement and Management

Introduction This module covers how to measure, assess, communicate /report and interpret
impact.
The purpose of this training is to:
• Familiarize the audience with impact measurement processes
Purpose • Understand how impact measurement can help adjust investment
portfolio for better impact
This session covers the following topics:
• How to measure and assess impact
• How communicate results
• Effective metrics to optimize data-driven decision making
In this session
• Context specific indicators in impact measurement
• Emerging tech solutions for impact measurement
• Different approaches to measuring impact

Ms. Rabayl Mirza is the Impact Management Specialist at the Business Call to Action. She has a strong track
record of supporting organisations and companies manage and measure their impact. Prior to joining BCtA,
Rabayl worked as a Senior Manager for the Measurement, Learning and Evaluation function at the Aman
Foundation, $100 million social impact fund of the Abraaj Group. She has an MSc in Economic Development
and Policy Analysis from the University of Nottingham (UK) and a Bachelors in Business Administration from
the Institute of Business Administration in Pakistan.
Module 3: Mobilizing Islamic Finance for Impact Investing: Managing the Pipeline

This module analyzes how to identify, screen and structure Shari’ah compliant
Introduction deals in the impact investing ecosystem and how to manage the pipeline from
supply side actors’ perspectives.
The purpose of this training is to:
• Enable the audience to understand how Shari’ah compliant impact
investment activities can be identified, screened and managed
Purpose • Highlight the important points in carrying out effective due diligence for
Islamic finance funded impact investments as well as in building term
sheets.
This session covers the following topics:
• Identifying Shari’ah compliant impact investing activities to include in
the portfolio
• Effective due diligence process and the criteria to be used for screening
the impact investing activity (Sharia and impact criteria)
• How to finance different types of impact investments/enterprises using
the most suitable Islamic finance instruments
In this session
• Structuring transactions to optimize financial return and impact
• Term sheet building and valuation techniques from a Shari-a perspective
• Post investment strategies to monitor Shari’ah compliant and Islamic-
funded impact investing activities
• Strategies in capacity building in the company and reaching out to
effective partners in the Islamic finance and impact investing ecosystem

Mr. Cem Baytok has over 15 years of PE/VC and over 20 years of entrepreneurial experience. Since 2003, He
took managing director and lead investment manager roles in Turkey in investment funds where he made
several PE/VC investments at different sizes (250k-100m USD), have worked on different asset classes and
financial structures (Growth PE, VC, LBO, MBO, ABS, IPO and M&A) and concentrated on different industries
(telecommunication, internet enabled services, financial services, supply chain logistics, healthcare,
agriculture and cleantech). He also worked at CXO levels in several of investments, taking on post investment
management responsibilities. He is managing partner of Idacapital, investing early stage innovative and
impactful startups in Turkey through Idacapital innovation fund.
Module 4: Islamic Financial Instruments and Contracts for Impact Investing

• The module lays out philosophical foundations of Islamic economics and

finance
Introduction • The module sets out the current landscape of Islamic financial services
industry and its key stakeholders
• This module identifies avenues by which Islamic finance can join hands with
impact investing activities
The purpose of this training is to:
• Understand the current position of Islamic finance sector and Islamic
finance instruments in capital markets
• Expand knowledge on Islamic finance contracts that have high
potential to support impact investing activities
Purpose
• Explain Sharia compliance guidelines and criteria
• Identify the key players in the Islamic finance sector
• Understand the areas of convergence between Islamic finance and
Impact Investing
This session covers the following topics:
• The performance of the Islamic finance sector
• The actors in the Islamic finance sector
• The potential role of Zakat and Awqaf in achieving SDGs
• Mapping SDGs into Maqasid al Shariah
In this session
• Explanation and discussion of profit-seeking and social impact seeking
Islamic finance Institutions
• The role of Awqaf-based Sukuk in financing impact investments
• Case studies on the role of Islamic Finance in Impact Investing

Muhammad Umair Husain is currently working as Senior Investment Specialist at Islamic Development Bank
and is also a Member of the Board of Directors at Bosna Bank International, having more than 10 years of
multi-disciplinary experience in private equity, investments portfolio management, policy development and
advisory in Islamic banking & capital markets regulations. Mr. Husain holds a Master of Science in Accounting
& Finance from London School of Economics & Political Science, UK and a Bachelor of Business Administration
from the İnstitute of Business Administration, Pakistan. Mr. Husain also holds Chartered Financial Analyst
(CFA) and Financial Risk Manager (FRM) qualifications. Besides, Mr. Husain has participated in numerous
training programmes and seminars where he strengthened his skills in financial planning & forecasting and
financial modelling techniques.
Module 5: Risks and Opportunities

This module goes through case studies to identify good practices and explore
Introduction opportunities and risk mitigation strategies in Shari’ah compliant impact
investments.
The purpose of this training is to:
• Provide the audience with case studies to exhibit good practices in
Islamic finance and impact investments
Purpose
• Identify risks and opportunities surrounding Islamic finance funded
impact investments
This session covers the following topics:
• Good practice cases and pioneer transactions in the Islamic finance
and impact investing ecosystem
• Lessons learned from prior experience in Islamic finance and impact
investing
• Opportunities created by fintech, crowdsourcing, digital banking and
In this session
other digital platforms for Shari’ah compliant impact investments
• Financial, political, regional and industrial risks for impact investing
projects from the Islamic finance perspective
• De-risking tools, risk sharing mechanisms and risk mitigation
measures

Dr. Wail Aaminou is the General Manager of Al Maali Consulting Group for French speaking countries. With a
professional experience mostly in finance advisory positions, Dr. Aaminou focuses on topics related to ethics,
sustainable finance and marketing. Joining his professional activity to his academic interests, Dr. Aaminou
lectured in many universities including the University of Istanbul Sabahattin Zaim, the University of
Sunderland, the University of Paris Dauphine and the International University of Casablanca. He also
contributed to several scientific articles in international journals. His research specializes in consumer
behavior, complexity and sustainability financing. Dr. Wail Aaminou has a Ph.D. in Applied Mathematics and
IT from Ecole Mohammadia d'ingénieurs (Morocco). He is a Fulbright Scholar from Duke University (U.S) where
he holds an MBA in Finance with a certificate of excellence.