Al Baraka Forum and Spectreco LLC Ink Deal to Launch World’s first Shariah-Compliant ESG Index

The Al Baraka Forum for Islamic Economy – a leading independent global think tank advancing Islamic economic principles – and Spectreco LLC (USA) – a global sustainability technology, advisory, and implementation company – have officially signed a strategic agreement at the 45th Al Baraka Islamic Economics Symposium in Madinah to develop and launch the world’s first Shariah-Compliant ESG Index. The signing ceremony took place in the presence of Prince Faisal bin Salman Al Saud, Governor of Madinah, and Sheikh Abdullah Saleh Kamel, Chairman of the Board of Trustees of Al Baraka Forum for Islamic Economy, underscoring the importance of this groundbreaking initiative. This pioneering initiative merges the principles of Maqasid al-Shariah with leading global ESG standards, offering a comprehensive and ethical framework for responsible investment, sustainability, and financial transparency across Islamic economies. The Islamic ESG Index will blend rigorous Shariah screening, such as sectoral exclusions and financial ratio thresholds, with AI-powered ESG analytics delivered through Spectreco’s proprietary technology platform. The Index aims to serve a wide range of stakeholders, including investors, regulators, and Islamic finance institutions seeking to align faith-based investment practices with modern sustainability goals. Sheikh Yousef Hassan Khalawi, Secretary-General of Al Baraka Forum, stated: Faraz Khan MBE, CEO & Partner of Spectreco, added: The Islamic ESG Index will initially focus on the GCC, European, and Southeast Asian markets, responding to the growing global demand for values-driven, Shariah-compliant sustainable financial solutions. Through real-time transparency, active monitoring, and dynamic reporting, the Index is expected to play a transformative role in shaping the future of Islamic and sustainable finance worldwide.