Can Socially Responsible Investing bridge the Gap between Islamic and Conventional Financial Markets?

Islamic finance and socially responsible investing (“SRI”) have been two of the most rapidly growing areas of finance over the last two decades. Although both types of investors seek to achieve a strong return on their investments, Muslim and non-Muslim SRI investors are also looking for their investments to make a positive impact on their societies. Islamic finance and SRI both suffer from a distinct lack of liquid fixed income investment options. A socially responsible sukuk could fill a need for both markets simultaneously and also help bridge the divide between the conventional and Islamic financial markets.