The Potential of Islamic Microfinance in Achieving Sustainable Development Goals (SDGs)
Keywords:
Islamic microfinance, Sustainable Development Goals, Zakat, WaqfAbstract
Islamic microfinance provides a distinctive strategy for tackling poverty, injustice, and sustainable development because it is based on Shariah. The potential of Islamic microfinance to help achieve the Sustainable Development Goals (SDGs) is examined in this research study, with an emphasis on financial inclusion, economic growth, and poverty alleviation. Using a qualitative methodology, this study examines reports from Islamic financial organizations, case studies, and current literature through content analysis. Information is gathered from academic journals, reports from global institutions (such as the World Bank and the Islamic Development Bank), and case studies from nations with a majority of Muslims where Islamic microfinance has been practiced. In order to obtain insight into the difficulties and opportunities related to Islamic microfinance, the study also includes interviews with specialists in the field of Islamic finance. The study examines how Islamic microfinance might support sustainable development in nations with a majority of Muslims and beyond by analyzing Islamic financial tools including Qard al-Hasan, Waqf, and Zakat. In order to fully realize the promise of Islamic microfinance for global development, the study ends with recommendations for decision-makers in government, financial institutions, and international organizations.
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