If the pure pursuit of greed is no longer good in the post-crisis world, what defines the new “good”?

That’s when you start to consider “Impact Investing”, a type of investment that pursues measurable social and environmental impacts alongside a financial return. ¬†According to a report¬†prepared for the Rockefeller Foundation, approximately 2,200 impact investments worth $4.4 billion were made in 2011.

But those who may be ideally placed to pursue Impact Investing are still largely absent from the exercise — sovereign wealth funds from the Persian Gulf, according to a recent paper published by academics at the Fletcher School at Tufts University.

Authors Asim Ali and Shatha Al-Aswad at Tufts’ Sovereign Wealth Fund Initiative argue that Persian Gulf states can deploy their SWFs in impact investing, via Islamic finance, to help develop their economies.

Islamic finance, with its focus on moral and social objectives, and specifically Sovereign Wealth Funds, as long-term investors, are ideally positioned to pursue impact investing… to foster social impact and economic development in the broader economy.