THE ROLE OF ISLAMIC SOCIAL FINANCE IN ACHIEVING SUSTAINABLE DEVELOPMENT GOALS

Agus Wahyu Irawan

doi:10.53491/papua.v3i1.2072

Authors

Agus Wahyu Irawan Universitas Islam Negeri Sunan Ampel Surabaya and Universitas Al-Hikmah Indonesia

DOI:

https://doi.org/10.53491/papua.v3i1.2072

Keywords:

Islamic Social Finance; Sustainable Development Goals; Zakat; Waqf; Inclusive Economic Growth.

Abstract

Islamic Social Finance (ISF) has emerged as a strategic instrument for supporting the achievement of the Sustainable Development Goals (SDGs) through its contributions to poverty alleviation, human capital development, inclusive economic growth, and inequality reduction. This study aims to analyze the role of Islamic social finance in achieving sustainable development. Using a qualitative approach and a systematic literature review (SLR) method, this research examines approximately 30 scholarly articles and institutional reports related to zakat, waqf, sadaqah, infaq, Islamic microfinance, and SDGs. The findings reveal that Islamic social finance significantly contributes to SDG 1 (No Poverty), SDG 3 (Good Health and Well-Being), SDG 4 (Quality Education), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities). Furthermore, the integration of governance, institutional collaboration, and digital innovation enhances the effectiveness of Islamic social finance programs. This study concludes that Islamic social finance represents a comprehensive and sustainable development framework capable of promoting inclusive growth, social welfare, and equitable development while supporting the broader achievement of the SDGs.

Downloads

Download data is not yet available.

References

Abdullah, M., Hassan, M. K., & Amin, R. M. (2024). Islamic social finance and sustainable development: A systematic literature review. Journal of Islamic Economics and Finance, 16(2), 145–162.

Adebayo, R., Abdullah, M., & Hassan, M. K. (2024). Community empowerment through Islamic social finance and sustainable development. International Journal of Social Economics, 51(4), 533–550.

Ahmad, N., Kassim, S., & Noor, A. H. M. (2024). Digital transformation in Islamic social finance institutions: Opportunities and challenges. Journal of Islamic Accounting and Business Research, 15(2), 290–307.

Ahmed, H., & Mohieldin, M. (2024). Digital transformation and the future of Islamic social finance. Journal of Islamic Accounting and Business Research, 15(1), 1–18.

Ainol-Basirah, A. W., Kassim, S., & Yusof, R. M. (2024). Islamic social finance and sustainable development goals: Emerging trends and future directions. Sustainability, 16(3), 1254.

Alshater, M. M., Hassan, M. K., Khan, A., & Saba, I. (2023). Islamic social finance and healthcare development: Evidence from emerging economies. International Journal of Ethics and Systems, 39(4), 711–728.

Amin, R. M., Abdullah, M., & Hassan, M. K. (2024). Waqf and healthcare sustainability: A pathway toward achieving SDG 3. Journal of Sustainable Finance and Investment, 14(2), 210–228.

Ascarya, A., & Sakti, A. (2022). Islamic microfinance and sustainable economic development: Evidence from Indonesia. International Journal of Islamic and Middle Eastern Finance and Management, 15(3), 452–469.

Bilo, C., & Machado, A. C. (2024). Social protection, inclusion, and sustainable development in developing countries. Development Policy Review, 42(1), 55–73.

Chapra, M. U. (2008). The Islamic vision of development in the light of maqasid al-shariah. Islamic Research and Training Institute.

Creswell, J. W., & Creswell, J. D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches (5th ed.). Sage Publications.

Haneef, M. A., & Mohammed, M. O. (2023). Islamic social finance and socio-economic justice: An integrated framework. Humanomics, 39(3), 321–339.

Haneef, M. A., Pramanik, A. H., & Mohammed, M. O. (2023). Governance challenges in Islamic social finance institutions. Journal of Islamic Economics, Banking and Finance, 19(1), 35–52.

Hassan, M. K., & Aliyu, S. (2023). Islamic finance and inclusive economic growth: A sustainable development perspective. Thunderbird International Business Review, 65(4), 421–437.

Hassan, M. K., Aliyu, S., & Ahmad, A. U. F. (2022). Islamic finance and sustainable development goals: Progress and prospects. Thunderbird International Business Review, 64(5), 653–667.

IsDB. (2023). Islamic social finance report 2023. Islamic Development Bank.

Ismail, A. G., Rahman, M. P., & Abdullah, N. (2023). Zakat, waqf, and sustainable development goals: An empirical assessment. International Journal of Islamic Economics and Finance Studies, 9(2), 115–132.

Karim, N., Rahman, M. P., & Yusoff, M. Y. (2024). Zakat distribution and inequality reduction: Empirical evidence from developing economies. Journal of Islamic Monetary Economics and Finance, 10(1), 89–107.

Khan, T., & Badjie, F. (2023). Waqf institutions and human capital development in Muslim societies. Journal of Muslim Philanthropy and Civil Society, 7(1), 21–40.

Khan, T., Abdullah, R., & Ahmed, H. (2024). Islamic social finance and inclusive entrepreneurship development. International Journal of Islamic and Middle Eastern Finance and Management, 17(1), 101–119.

Mansori, S., Haron, R., & Rashid, M. (2023). Human development and Islamic social finance: Evidence from Muslim-majority countries. Humanomics, 39(2), 220–238.

Mastura, S., Muneeza, A., & Hassan, R. (2024). Productive zakat and entrepreneurial empowerment: A sustainable development approach. Journal of Islamic Social Finance, 6(1), 44–62.

Miles, M. B., Huberman, A. M., & Saldaña, J. (2020). Qualitative data analysis: A methods sourcebook (4th ed.). Sage Publications.

Mohamed, H., Kassim, S., & Razak, D. A. (2024). Islamic philanthropy and healthcare accessibility in developing countries. International Journal of Social Economics, 51(3), 367–385.

Mohieldin, M., Ahmed, H., & Alam, M. K. (2024). Islamic social finance and sustainable development: New opportunities and challenges. Journal of Sustainable Finance and Investment, 14(3), 411–430.

Muneeza, A., Mustapha, Z., & Hassan, R. (2023). Waqf-based sustainable development and SDGs: A global perspective. Sustainability, 15(7), 5891.

Noor, A. H. M., & Pickup, F. (2024). Advancing sustainable development through Islamic social finance. UNDP Working Paper Series, 12(1), 1–24.

Obaidullah, M., & Khan, T. (2021). Islamic microfinance development: Challenges and initiatives. Islamic Research and Training Institute.

Paul, J., & Criado, A. R. (2020). The art of writing literature review: What do we know and what do we need to know? International Business Review, 29(4), 101717.

Rahim, R. A., Ismail, A. G., & Hasan, Z. (2023). Islamic microfinance and entrepreneurial sustainability among SMEs. Journal of Entrepreneurship in Emerging Economies, 15(5), 875–893.

Rahman, M. P., & Iskandar, T. (2023). Educational waqf and human capital development in contemporary Muslim societies. Journal of Islamic Education Research, 18(2), 145–163.

Rashid, M., Mansori, S., & Haron, R. (2024). Digital innovation and governance effectiveness in Islamic social finance institutions. Journal of Islamic Accounting and Business Research, 15(4), 650–669.

Razak, D. A., Yusoff, M. Y., & Ibrahim, S. (2022). Institutional effectiveness of Islamic social finance in addressing sustainable development challenges. International Journal of Ethics and Systems, 38(3), 460–478.

Saiti, B., Hasan, A., & Azman, N. H. (2024). Financial inclusion through Islamic microfinance: Challenges and opportunities. Global Finance Journal, 60, 100918.

Shaikh, S. A. (2022). The role of zakat in poverty alleviation and sustainable economic development. International Journal of Zakat, 7(1), 1–16.

Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, 104, 333–339.

Sulaiman, M., Hassan, R., & Muneeza, A. (2024). Educational waqf and equitable access to quality education. Journal of Islamic Philanthropy Studies, 5(1), 78–96.

Tlemsani, I., Zaman, A., Hashim, M. A. M., & Matthews, R. (2023). Digitalization and sustainable development goals in emerging Islamic economies. Journal of Islamic Accounting and Business Research, 14(5), 890–914.

United Nations. (2024). The sustainable development goals report 2024. United Nations.

UNDP. (2024). Human development report 2024. United Nations Development Programme.

Yumna, A., & Clarke, M. (2023). Education, health, and social welfare integration through Islamic social finance. Development in Practice, 33(6), 721–738.