Why Cultural Heritage Needs Green Finance

Green Sukuk has emerged as a leading instrument for financing renewable energy and infrastructure. But its potential extends beyond climate projects—it can also fund cultural heritage preservation, creating a unique link between sustainability and identity.

Historic sites face threats from urbanisation, neglect, and climate change. Preserving them requires significant investment, which traditional funding often overlooks. Green Sukuk offers a Shariah-compliant solution that aligns cultural preservation with environmental responsibility.

Practical Applications and Global Examples

• Eco-Restoration of Heritage Sites: Financing energy-efficient restoration of mosques, madrasas, and historic buildings. For example, a historic madrasa could be restored with LED lighting and rainwater harvesting systems, ensuring the building remains functional while reducing its environmental footprint.

• Sustainable Tourism Infrastructure: Developing green transport and eco-friendly visitor facilities around heritage zones. electric vehicles and provide guided tours that promote cultural appreciation alongside sustainability practices.

• Cultural Education Centres: Funding centres that promote Islamic art and sustainability education. For example, a centre in a historic district could combine art galleries with interactive sessions on how Islamic values support environmental stewardship.

Morocco has launched initiatives to restore historic medinas. Funded through a diverse portfolio from state budgets and international partners., there is the potential to explore using Islamic finance. In the UAE, cultural projects are increasingly linked to sustainability goals, supported by a robust Sustainable Finance Framework that could facilitate integrating green Sukuk into heritage conservation. In Zanzibar’s Stone Town, Waqf manages 20% of historic buildings, reinvesting property revenues to sustain their own preservation and support the local community. 

Investor Appeal

Green Sukuk for cultural heritage offers dual benefits: ethical returns and social impact. Investors support projects that preserve identity while meeting ESG criteria—a growing priority in global markets. Beyond financial returns, these investments contribute to cultural diplomacy, tourism development, and community empowerment. To scale this model, clear frameworks and impact metrics are essential. Collaboration between cultural ministries, Islamic finance institutions, and sustainability experts will unlock its full potential.

Challenges and Opportunities

Standardising frameworks for heritage-linked Sukuk and ensuring measurable impact are key. Collaboration between cultural ministries, Islamic finance institutions, and sustainability experts will unlock this potential. Digital platforms and blockchain can enhance trust and attract younger investors, while partnerships with tourism boards can amplify economic benefits. Governments and NGOs have a role to play in creating enabling policies and awareness campaigns to drive adoption.

Green Sukuk can redefine cultural preservation as a sustainable investment opportunity, blending faith, heritage, and environmental stewardship. For investors, policymakers, and communities, this is more than finance—it’s a movement towards a future where culture and sustainability thrive together.