University of Cambridge, 13th Gulf Research Meeting
https://www.gulfresearchmeeting.net/about-grm
Call for Papers
GRM 2023 Workshop 1
Sustainable Development Financing and the Role of the Financial Sector in the GCC Region
11-13 July 2023
University of Cambridge
Workshop Description and Rationale
The magnitude of the issues the world has been experiencing, both economically and environmentally, has reached such levels which require urgent action to ensure human security. Therefore, the urgency of sustainable development is no longer a niche topic but has become part of global morality as expressed in various international initiatives such as SDGs. As part of such initiatives, the November 2021 United Nations Climate Change Conference (COP26) in Glasgow sought to devise compelling initiatives to combat the climate crisis. Later in 2022, a follow-up conference on this issue convened to discuss a global biodiversity framework.
Exploitative production and excessive consumption habits as the norms of the market economy have resulted in catastrophic environmental, financial, and socioeconomic impacts. Despite the enormous capital and financial gains and movements, poverty remains a pressing issue; exclusion and disenfranchisement of the impoverished remain critical challenges in the 21st century, while climate change due to such products and consumption patterns affects every corner of the world.
The growing asymmetry between the real economy and the financialised economy indicates the unsustainable nature of the global economy - banks and financial institutions have created demand far beyond the reasonable level through their lending and financing channels. The results are twofold: strain on global resources and an escalation of the environmental crisis. Further, increased access to finance is not translating into equitable resources for the impoverished – an injustice that must be addressed.
In response to these trends, there have been significant developments within the financial sector, including the emergence of sustainability-linked instruments, green bonds and green sukuk and initiatives by financial sector supervisors; for example, the Network for Greening the Financial System, the Sustainable Stock Exchanges (SSE) initiative and the UNDP's Financial Centres for Sustainability (FC4S). Initiatives have also emerged from the sector itself, notably the promises made at COP26 by the Glasgow Financial Alliance for Net Zero, a coalition of banks, insurers, and major investors. This is part of a process in which banks and financial institutions are expected to align themselves with the sustainable development paradigm as part of a global community despite the observed ‘green-washing’.
Under such observed demand conditions and opportunity spaces, banks and financial institutions, including the Islamic finance sector, must develop the necessary frameworks, taxonomies, mechanisms, practices, and measurements to demonstrate sustainable development credibility in economic, social, environmental, and governance spheres. This requires going beyond the common pattern of the financial screening process to one of the positive choices within an enhanced governance system based on integrating the interests of all the stakeholders so that ‘rescuing and healing’ can be possible. Hence, sustainability requires transforming business, economic and financial practices and individual consumption behaviour.
Thematic Areas and Research Questions
Considering that the GCC economies are challenged by demand (consumption-based economic behaviour) and supply (oil and gas-based economy) push factors in terms of sustainability challenges, sustainable development discourse and practice have become an essential policy for the governments as well as corporations and banks in the GCC, as elsewhere. The GCC's demand and supply push factors have created pressure on the climate change debate and framed the GCC countries. To moderate and overcome the consequences of consumption and production-based sustainability challenges, capital and financing will play an essential role so that the transformation of economies in the GCC towards a more sustainable state can be possible. In this, the financial sector, along with public policy and public finance, will play a crucial role. However, considering the magnitude of the financing needed for the envisaged transformation, there is a huge financing gap, while the sustainability performance of the financial sector is questioned. Therefore, this workshop aims at responding to the following research questions:
SDGs performance of the GCC countries and ESG performance of the GCC business and corporate sector
Challenges faced by the GCC countries and GCC businesses and corporates in terms of SDGs and ESG compliance
Governance strategies and measures developed by the GCC countries and GCC corporate sector and businesses to integrate sustainability
Available financing opportunities in the GCC region to transform the GCC economies towards sustainable economies
The nature of financing gap in the GCC region for sustainable development transformation, and the alternative financing opportunities available to overcome the gap
Type and nature of financing offerings and mechanisms available from conventional and Islamic banks and financial institutions to finance the financing gap for sustainable development in the GCC region
The sustainable development performance of conventional and Islamic banks at the institutional level in the region
The mechanisms developed by conventional and Islamic banks to be considered sustainable friendly institutions, such as green and environmental friendliness
The role of GCC conventional and Islamic capital markets in responding to sustainable and, in particular, green financing?
Regulative provisions have been developed to incentivise the financial sector to contribute to the financing needed to transform the GCC region for sustainable futures
Available financing mechanisms for the corporate sector in its search for sustainable development and green transformation
Role of civil society and charity-based financing in generating the necessary funding for sustainable development?
Social financing (including Islamic social financing) as a viable and significant source to raise financing for sustainable development in the GCC and in comparison to other regions
Financing options, mechanisms, as well as monetary and fiscal policy measures developed by the public sector to respond to the sustainability challenges, such as initiatives for green budgets
Comparative sustainable performance of conventional and Islamic banks and financial institutions at the institutional level and in terms of contributing to SDGs financing in the GCC
Genuine green economy initiatives in the GCC region, or are they greenwashing initiatives?
The innovative nature of sustainable development financing by banks, and the corporate and public sectors in the region
Impact of financialization in the GCC countries on the transformation of the economy for a sustainable and green economy
The relationship between the knowledge economy, sustainable development performance, and innovative sustainable development financing in the region
The nature and magnitude of GCC regional cooperation scale-up financing mobilization for sustainable development
Critical comparative perspectives that can be offered between countries within the GCC and between the GCC and other regions, such as South-East Asia and Europe, on the above-listed issues
Lessons can be drawn from other regions for financing sustainable development for the GCC corporate and public sectors on all the above-listed issues, including the GCC conventional and Islamic banking sectors.
The Nature of the Anticipated Papers
The workshop aims to attract mainly two types of papers: empirical papers based on statistical and econometric analysis of primary or secondary data from the GCC and comparative studies with other countries and regions. Secondly, discursive essays exploring the particularities of the political economy aspect of sustainability financing are encouraged.
In the selection process, the following criteria will be employed:
§ appropriateness of the subject matter, including the regional reference or the individual country in the region, including comparative dynamics between countries and regions
§ identification of an identified gap in the literature
§ the intellectual rigour
§ the methodological and empirical rigour
§ critical analysis
§ locating the findings within the larger body of knowledge.
Financial Support
Gulf Research Centre offers financial support to the participants, and details can be found through the following link:
https://www.gulfresearchmeeting.net/w/GRM%202023%20Honorarium%20Details.pdf
Abstract Submission
An extended abstract of 500 words should be submitted by 24th February 2023, which should provide a brief background of the topic, aims of the paper and the research questions, the methodology and method used, concepts developed (if conceptual paper) and the findings (if empirical paper) (or expected findings). Please also add a short biography (not a CV) in the main text of the abstract, identifying your title, present post and rank, affiliation details, and email.
Submissions Deadline: 24th February 2023
Submission Platform: Submission is through the GRM website:
https://www.gulfresearchmeeting.net/register-paper-user
Please select Workshop 1: Sustainable Development Financing and the Role of the Financial Sector in the GCC Region
Publication Plan
The main publication from the papers presented at the Workshop will be an edited book. We are also planning to approach leading journals in the field to discuss a potential special issue with selected papers presented at the workshop.
Workshop Directors:
Professor Mehmet Asutay
Durham Centre in Islamic Economics and Finance
Durham University Business School
Durham University
United Kingdom
Email: mehmet.asutay@durham.ac.uk
Dr Dalal Aassouli
College of Islamic Studies
Hamad bin Khalifa University
Doha, Qatar
Email: daassouli@hbku.edu.qa