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14 - Islamic Finance, Sustainable Development and Developing Countries: Linkages and Potential

from Part III - Normative and Utility Perspectives

Published online by Cambridge University Press:  18 December 2019

By
Mohammed K. Alshaleel
Edited by
Onyeka Osuji ,
Franklin N. Ngwu  and
Dima Jamali
Onyeka Osuji
Affiliation:
University of Essex
Franklin N. Ngwu
Affiliation:
Pan-Atlantic University, Nigeria
Dima Jamali
Affiliation:
American University of Beirut
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Summary

The chapter considers the role of Islamic finance in promoting the Sustainable Development Goals (SDGs) in developing countries. The SDGs require unprecedented mobilization of funds to support their implementation. Given the social and moral ethos and emphasis on prohibition of riba (interest) and asset-backed financing, Islamic finance offers an effective non-traditional means of financing for sustainable development activities and projects in developing countries. This chapter demonstrates that the ideology of Islamic finance, its attributes, principles, products, instruments and institutions all tend to be well-suited to boosting the SDGs. It also shows that Islamic finance has great potential in supporting developing countries’ efforts to finance the SDGs agenda. Divided into seven sections, the chapter outlines sustainable development from an Islamic perspective, and the principles of Islamic finance, before assessing the role of Islamic financial institutions, sukuk (Islamic bonds), and Islamic social finance (zakat and waqf) in promoting the SDGs.

Keywords

Developing CountriesFinancing GapInnovative FinanceIslamic FinanceSDGsSustainable Development
Type
Chapter
Information
Corporate Social Responsibility in Developing and Emerging Markets
Institutions, Actors and Sustainable Development
 , pp. 281 - 305
Publisher: Cambridge University Press
Print publication year: 2019

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