Overview

UNDP is helping to widen financial inclusion and protect lives and livelihoods by harnessing the potential of Takaful.

Over half of the 30 countries most affected by the changing climate have Muslim-majority populations. Providing suitable risk transfer solutions in these countries is complicated by the fact that for Muslim communities, financial solutions must comply with faith-based tenets. Takaful can be part of this solution.

A cooperative system of risk transfer guided by the good of the community, Takaful can help people better understand and manage their risks, provide financial protection, incentivize investment, and ensure that risk management solutions are available in the places where they are needed most.

The Global Takaful Alliance

UNDP is working to create the largest partnership of its kind to make Takaful available to all: The Global Takaful Alliance. With the ambitious target of 100 million people made financially resilient by 2030 through Takaful, the Alliance is joined by founding members, the Islamic Development Bank (IsDB), Arab Gulf Fund for Development (AGFUND), Kuwait Finance House (KFH) Group and the Mohammed Bin Rashid Al Maktoum Global Initiatives (MBRGI).

Barren land

“There is an imminent need to expand the developmental benefits of risk-transfer solutions, especially Takaful, for financially vulnerable Muslim-majority populations on the frontlines of an escalating climate crisis.” 

Abdallah Al Dardari, Assistant Secretary-General and Director of the Regional Bureau for Arab States, United Nations Development Programme
Financial Resilience through Takaful
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