Al Baraka Forum, Spectreco to launch first Shariah-compliant ESG index

In a move aimed at bridging Islamic finance with sustainable development, the Al Baraka Forum for Islamic Economy—a leading independent think tank—and U.S.-based sustainability technology firm Spectreco have signed a strategic agreement at the 45th Al Baraka Islamic Economics Symposium in Madinah.

Together, they’re launching the world’s first Shariah-compliant ESG Index, combining Islamic financial principles with global environmental, social, and governance standards. The signing ceremony was held in the presence of Prince Faisal bin Salman Al Saud, Governor of Madinah, and Sheikh Abdullah Saleh Kamel, Chairman of the Forum’s Board of Trustees, underscoring the significance of this initiative.

The new index aims to offer investors, regulators, and Islamic finance institutions a transparent, ethical, and sustainability-driven investment benchmark. It blends traditional Shariah screening, such as sector exclusions and financial ratio thresholds, with AI-powered ESG analytics via Spectreco’s proprietary technology.

“The index is designed to support a growing demand for value-driven investment options that align with Islamic values and modern sustainability goals,” said Sheikh Yousef Hassan Khalawi, Secretary-General of the Al Baraka Forum. “In Islamic finance, ethics and responsibility go hand-in-hand with financial growth. This index is a natural evolution of that principle.”

Spectreco CEO Faraz Khan MBE added, “We’re proud to be working with Al Baraka Forum to make ESG compliance simpler and more impactful for Islamic financial institutions. This collaboration brings together tradition, innovation, and a shared vision for a more sustainable future.”

Initially, the index will focus on markets in the GCC, Europe, and Southeast Asia, where demand for Shariah-compliant sustainable finance solutions is rapidly growing. With real-time transparency, active monitoring, and dynamic reporting, the index is set to play a major role in shaping the next chapter of Islamic and ethical finance worldwide.