In core, Islamic finance and the sustainable development goals (SDGs) initiated by the United Nations have the same goal to educate and create good livelihood for the human life. For this chapter, the researchers collected few research articles in Scopus Database towards the intersection of Islamic finance and SDGs. The authors have selected few Islamic finance and Sustainable Developmental Goals articles as an inclusion criteria along with the year of publication from 2015 to October 2023. They selected papers that focused on Islamic finance as an inclusion criterion and excluded papers that from 1990 to 2015. They retrieved 32 papers and book chapters published from 2015 to 2022 from the Scopus database. By using Vos viewer, the researchers analyzed the keyword from the article, year wise prediction, and authors' contribution for Islamic finance for Sustainable Development Goals. The researchers used the data to predict the future growth of Islamic finance the researcher found that there is a wide gap for Islamic finance supports the SDGs.
Top2. Sdgs And Islamic Finance
SDGs provide an opportunity to redefine the role leading to people, empowerment, socio-economic development, and the environment. Islamic Finance roles have been defined about the Global Agenda and its enhancement towards Islamic finance. The SDGs Goals value have counterparts significance and its application towards Islamic finance.,
Islamic finance (Ahmed, 2017) the plan of UN estimation to deliver the SDGs, there is a need of 5 to 7 trillion per annum needs to be mobilised by 2030. Major developing countries face a great challenge for funding gap of USD 2.5 trillion to achieve SDGs. To fill this major gap low-income countries, require the largest public expenditure relative to GDP to fill this gap. (Ghlamallah, Alexakis, Dowling, & Piepenbrink, 2021) Islamic Finance mentions the financial practices governed by Islamic laws, for execution of business activities by eradicating the interest using profit- and loss-sharing mechanisms.
There is a proven potential growth and support for the implementation of the SDGs (Sustainable Development Goals) which was initiated by United Nations (UN. Islamic finance grown gradually with high significant in many challenges. Many of the developing countries have high poverty rates and low score in reaching the SDGs, which require empowerment in their infrastructure (Ahmed H.). Majorly the share of the resources for developmental purpose Islamic finance can be a novel option. The gradual has been rapidly increases from 10-20%.
(Refinitiv., 2021) Islamic finance has arisen as a device to help financial growth, in an annual symposium significant light has given to enlighten the Islamic finance and they have proven that the associated bank of (INCIF) supports for the growth of Sustainability.
(Azmat, Kabir Hassan, Ali, & Sohel Azad, 2021,) explained Islamic finance provides industry different ratios to the customers, especially inclination towards the religious requirement, products of this industry are highly satisfied by the Islamic customers due to reputed customers. simultaneously risk factors also involved in this sector due to spirituality and financial fragility. There is less scattered research. (Abduh, 2019).There is a still a dilemma exist in role of Islamic finance and sustainability, compared to conventional banks, few customers considered Islamic finance purely as a religious concept (Hummel & Hashmi, 2019). In that it can be viewed from all angles and can encompass all industries, sustainability has multiple aspects. Consequently, there is no accepted definition of sustainability in and of itself. The ability to live a long time and use few resources, however, is what gives it its essence. As a result, many industries, including manufacturing, agriculture, marketing, and construction, have incorporated this sustainability notion into their sector procedures (Ogunmakinde, Egbelakin, & Sher, 2021). The SDGs of the UN are described in detail in their sector process, 17 Sustainable Development Goals and targets (169) are the different goals, target, capacities and level of development and respecting national policies and priorities. The SDGs are built for peace, inclusive and well-governed with responsive communities and institution. Each goal is independent but integrated.