Result of Service

The following results are to be achieved: Research paper on Leveraging Islamic Finance for Achieving the Sustainable Development Goals as following: • Deliverable 1: A draft analysis of global best practices for SDG bonds, including their alignment with Islamic finance principles with Initial recommendations for Bahrain’s readiness to pilot SDG Sukuk, focusing on regulatory and institutional frameworks. • Deliverable 2: Finalized action plan for Bahrain’s SDG Sukuk issuance, integrating collaborative findings with the Islamic Finance Consultant. This includes actionable steps for engaging stakeholders and defining success metrics.

Work Location

Remotely

Expected duration

2 months

Duties and Responsibilities

Background: At the half-way point of the 2030 Agenda for Sustainable Development, only about 15% of targets are on track; around 50% are moderately or severely off track; and some 30% have either seen no movement or regressed below the 2015 baseline. At current rates, only 30% of all countries will achieve even SDG 1 on poverty by 2030. Hunger has increased and is back at 2005 levels. Gender equality is some 300 years away. Financing gaps for sustainable development are large and growing – the estimates by international organizations and others are coalescing around USD 4 trillion additional investment needed annually for developing countries. This represents a more than 50% increase over the pre-pandemic estimates. Public and private stakeholders around the world have been exploring and developing new innovative financing solutions, such as blended finance, impact investing and green finance. The Islamic finance sector that emerged as an effective mode of financing sustainable development, has experienced substantial growth in recent years. Today, more than 500 Islamic banking and finance institutions are operating worldwide, which are claimed to manage assets worth around USD 2.9 trillion, while the assets held in these institutions were a mere USD 10 billion in 1985. Islamic capital markets have demonstrated unprecedented success in generating finance for corporate and public sectors. Sukuk (Islamic bonds) have been a particularly important Islamic capital market instrument in development finance and infrastructure development projects. Sukuk issuance has grown in many countries, including non-Muslim majority countries, since the first Sukuk issuance in 2001. By the end of 2020, total global Sukuk issuance reached around USD 1.4 trillion. The core principles of Islamic finance – channeling funding to the real economy, avoiding excessive speculations, and limiting debt to the value of assets are highly aligned with the spirit of the Sustainable Development Goals. The Islamic Development Bank (IsDB) found Islamic finance to be especially relevant in addressing ten of the 17 SDGs, including goals pertaining to poverty alleviation, infrastructure development, financial stability, and beyond. Sustainable Development Goals have also affected the Islamic finance industry to develop sustainable and green financing structures such as green Sukuk. There has been a dramatic increase in green Sukuk issuance, mainly taking place in Indonesia, Saudi Arabia, Malaysia and the United Arab Emirates. While many countries have made a progress in mobilizing Islamic finance resources for the achievement of the Sustainable Development Goals, this innovative finance modality remains largely untapped due to fragmented approach and limited capacities. Specifically, there is a significant potential to apply more increasingly impact investments and other sustainability-oriented investment and financing mechanisms in Islamic finance. Bahrain, with its robust financial sector and established role in Islamic finance, is well-positioned to pioneer new models of SDG financing. Sovereign SDG bonds are increasingly recognized as a tool for mobilizing public and private investments toward sustainable development. Furthermore, Islamic finance instruments, such as Sukuk (Islamic bonds), provide ethical, asset-backed frameworks that align closely with SDG principles. The integration of SDG bonds with Islamic finance presents a transformative opportunity for Bahrain to lead in leveraging innovative financing solutions. This consultancy aims to analyze global best practices in sovereign SDG bonds, assess their compatibility with Islamic finance, and provide actionable recommendations to pilot an SDG Sukuk in Bahrain. Duties and Responsibilities: Under the supervision of the RCO Economist in Bahrain and the overall guidance of the Head of Office, and in collaboration with Islamic Finance Consultant, the Impact Investment consultant will be responsible for producing a research paper that captures the following: • Independent Responsibilities: a) Global Analysis of SDG Bonds including the review the experiences of the Organization of Islamic Cooperation (OIC) countries : Conduct a comprehensive review of global experiences with sovereign SDG bonds, identifying benefits, challenges, and lessons learned. Provide a comparative analysis of best practices and their relevance to Bahrain. b) Strategic Framework for Bahrain: Develop a tailored action plan for Bahrain to issue an SDG Sukuk, addressing the regulatory, institutional, and financial prerequisites. • Collaborative Responsibilities (in coordination with the Islamic Finance Consultant): c) Evaluate the synergies and complementarities between SDG bonds and Sukuk, focusing on shared principles and opportunities for integrated implementation in Bahrain. d) Co-develop a case study on Bahrain’s readiness for SDG Sukuk issuance, integrating insights from global SDG bond practices and Islamic finance principles. Methodology and Process: The research methodology will include desk review of existing publications related to Islamic finance and SDGs; in-depth case studies on countries that have issued SDG bonds, through interviews with country representatives, the private sector, investors and others. Given the specific focus on the Kingdom of Bahrain, the research will be implemented in close collaboration and consultation with the local authorities, including the Central Bank of Bahrain, the Ministry of Finance and National Economy, and the Ministry of Sustainable Development. The research team will consist of the management team (RCO Economist) and the expert team of two international consultants on: i) Impact Investment (SDG bonds) and ii) Islamic finance (Sukuk); and one national consultant who has an excellent knowledge of the Bahrain’s financial sector and bond market. Performance Indicators a. Quality and timeliness of drafts provided b. Evidence-based, actionable recommendations tailored to Bahrain’s context. c. Effective collaboration with the Islamic Finance Consultant to produce cohesive findings.

Qualifications/special skills

Advanced university degree in Banking and Finance, Economics, or related field is required. A PhD or equivalent degree is desirable. A first-level university degree in combination with two additional years of qualifying experience may be accepted in lieu of the advanced university degree. All candidates must submit a copy of the required educational degree. Incomplete applications will not be reviewed. A minimum of 10 years of relevant professional experience is required. Excellent knowledge of Islamic finance instruments, including hands-on experience in establishing SDG bonds is required. Strong writing skills in English, excellent knowledge of UN terminology is required. Strong record in preparation of complex analytical documents for UN or any other similar international organizations is desirable. No conflict of interest such as recent or expected employment by UNCT members or implementing partners, private relationships with any UNCT members of staff or government counterparts or implementing partners; participation in the design, implementation or advising CF being evaluated, among others).

Languages

English and French are the working languages of the United Nations Secretariat; For this position, fluency in English is required. Note: “Fluency” equals a rating of ‘fluent’ in all four areas (speak, read, write, and understand) and “Knowledge of” equals a rating of ‘confident’ in two of the four areas.

Additional Information

Not available.

No Fee

THE UNITED NATIONS DOES NOT CHARGE A FEE AT ANY STAGE OF THE RECRUITMENT PROCESS (APPLICATION, INTERVIEW MEETING, PROCESSING, OR TRAINING). THE UNITED NATIONS DOES NOT CONCERN ITSELF WITH INFORMATION ON APPLICANTS’ BANK ACCOUNTS.