This paper highlights the opportunities, challenges and recommendations for Takaful - a Shari’ah-compliant alternative to conventional insurance - to build the financial resilience of at-risk Muslim communities against rising climate risks. This high-level knowledge product has been jointly developed by UNDP’s Insurance and Risk Finance Facility, the Islamic Development Bank (IsDB) and the IsDB Institute. It will be followed by more detailed guidance focusing on the development and distribution of Takaful solutions for specific economic sectors and risks.