Skip to main content Accessibility help
×
Hostname: page-component-848d4c4894-r5zm4 Total loading time: 0 Render date: 2024-06-19T21:37:49.536Z Has data issue: false hasContentIssue false

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

Onyeka Osuji
Affiliation:
University of Essex
Franklin N. Ngwu
Affiliation:
Pan-Atlantic University, Nigeria
Dima Jamali
Affiliation:
American University of Beirut
Get access

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.

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

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abdelhady, H. (2013). Islamic Finance as a Mechanism for Bolstering Food Security in the Middle East: Food Security Waqf. Sustainable Development Law & Policy, 13, 2935.Google Scholar
Abdulai, A. and Shamshiry, E. (2014). Linking Sustainable Livelihoods to Natural Resources and Governance: The Scale of Poverty in the Muslim World. Singapore: Springer.Google Scholar
Accounting and Auditing Organization for Islamic Financial Institutions [AAOIFI] (2003). Shari’a Standards 1424-5H/2003–4.Google Scholar
Ahmad, M. (2015). Role of Waqf in Sustainable Economic Development and Poverty Alleviation: Bangladesh Perspective. Journal of Law, Policy and Globalization, 42, 118130.Google Scholar
Ahmed, H. (2004). Role of Zakah and Awqaf in Poverty Alleviation, Issue 8 of Occasional paper. Jeddah: Islamic Development Bank, Islamic Research and Training Institute.Google Scholar
Alam, N., Gupta, L. and Bala, S. (2017). Islamic Finance: A Practical Perspective. London: Palgrave Macmillan.Google Scholar
Aldohni, A. (2012). The Legal and Regulatory Aspects of Islamic Banking: A Comparative Look at the United Kingdom and Malaysia. New York: Routledge.Google Scholar
Auda, J. (2008). Maqasid Al-Shariah: A Beginner’s Guide, 14 vols. London: International Institute of Islamic Thought.Google Scholar
Bellalah, M. and Masood, O., eds., (2013). Islamic Banking and Finance. Newcastle upon Tyne: Cambridge Scholars Publishing.Google Scholar
Bhowmik, S. and Saha, D. (2013). Financial Inclusion of the Marginalised: Street Vendors in the Urban Economy. New Delhi: Springer Science & Business Media.Google Scholar
Black, E., Esmaeili, H. and Hosen, N. (2013). Modern Perspectives on Islamic Law Cheltenham: Edward Elgar Publishing.Google Scholar
Bovens, M., T’Hart, P. and Peters, B., eds., (2002). Success and Failure in Public Governance: A Comparative Analysis, New Horizons in Public Policy Series Cheltenham: Edward Elgar Publishing.Google Scholar
Brown, R. (2013). Islam in Modern Thailand: Faith, Philanthropy and Politics, Routledge Contemporary Southeast Asia Series. New York: Routledge.Google Scholar
Chapra, M. (2000). The Future of Economics: An Islamic Perspective, 21 vols. Leicester: The Islamic Foundation.Google Scholar
DanaInfra Nasional Berhad (DINB) (2014). ‘Retail sukuk: exchange traded sukuk investment for everyone’ available at www.danainfra.com.my/images/stories/retailsukuk/ENG_brochure.pdf accessed August 24, 2018.Google Scholar
Dusuki, A. and Abdullah, N. (2006). Maqasid al-Shari`ah, Maslahah, and Corporate Social Responsibility. The American Journal of Islamic Social Sciences 24, 2545.Google Scholar
Eisenberg, D. and Nethercott, C., eds., (2012). Islamic Finance: Law and Practice. Oxford: Oxford University Press.Google Scholar
Pickup, F. (2017). (UNDP Indonesia Deputy Country Director), ‘Islamic finance offers enormous opportunity to support SDGs and address inequality’ available at www.id.undp.org/content/indonesia/en/home/presscenter/articles/2017/08/23/islamic-finance-offers-enormous-opportunity-to-support-sdgs-and-address-inequality.html accessed August 31, 2018.Google Scholar
Gatti, S. (2018). Project Finance in Theory and Practice: Designing, Structuring, and Financing Private and Public Projects. 3rd ed. Cambridge: Academic Press.Google Scholar
Ginena, K. and Hamid, A. (2015). Foundations of Shariah Governance of Islamic Banks, The Wiley Finance Series. Chichester: John Wiley & Sons.CrossRefGoogle Scholar
Hallaq, W. (2009). An Introduction to Islamic Law. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Hasan, S., ed., (2015). Human Security and Philanthropy: Islamic Perspectives and Muslim Majority Country Practices. New York: Springer.Google Scholar
Hasan, Z. (2014). Islamic Banking and Finance: An Integrative Approach. Oxford: Oxford University Press.Google Scholar
Hassan, A. and Mollah, S. (2018). Islamic Finance: Ethical Underpinnings, Products, and Institutions. London: Palgrave Macmillan.Google Scholar
Hassan, M. and Lewis, M., eds., (2014). Handbook on Islam and Economic Life Cheltenham: Edward Elgar Publishing.CrossRefGoogle Scholar
Housby, E. (2011). Islamic Financial Services in the United Kingdom. Edinburgh Guides to Islamic Finance Series. Edinburgh: Edinburgh University Press.Google Scholar
Ibn Ashur, M. (2006). Ibn Ashur: Treatise on Maqasid Al-Shariah. London: International Institute of Islamic Thought.CrossRefGoogle Scholar
International Islamic Financial Market (2018). IIFM Annual Sukuk Report, 7th edition available at www.iifm.net/system/files/private/en/IIFM%20Sukuk%20Report%20%287th%20Edition%29_0.pdf accessed August 24, 2018.Google Scholar
International Islamic Financial Market (2017). IIFM Annual Sukuk Report, 6th edition available at www.iifm.net/system/files/private/en/IIFM%20Sukuk%20Report%20%286th%20Edition%29_2.pdf accessed August 24, 2018.Google Scholar
Iqbal, K. (2009). The Right to Development in International Law: The Case of Pakistan. Routledge Research in Human Rights Law. New York: Routledge.Google Scholar
Islamic Corporation for the Development and Thomson Reuters (2016). ‘ICD-Thomson Reuters Islamic finance development report 2016’ available at www.salaamgateway.com/en/story/report_icdthomson_reuters_islamic_finance_development_report_2016-salaam06122016021157/ accessed August 18, 2018.Google Scholar
Islamic Development Bank (2016). Lives and Livelihoods Fund available at www.isdb.org/partnership/lives-and-livelihoods-fund accessed August 18, 2018.Google Scholar
Islamic Development Bank (2018). ‘The Islamic Development Bank Launches New Innovation Hub and Accelerator Fund to Fuel Economic Growth in The Developing World’ available at www.isdb.org/announcement/press-releases/the-islamic-development-bank-launches-new-innovation-hub-and-accelerator-fund-to-fuel-economic-growth-in-the-developing-world accessed August 18, 2018.Google Scholar
Islamic Development Bank About IsDB available at www.isdb.org/who-we-are/about accessed August 18, 2018.Google Scholar
Islamic Development Bank (2017). ‘Towards 2030: Exploring the Alignment of the Islamic Development Bank Group’s 10-Year Strategy and the Sustainable Development Goals’ available at www.unosd.org/content/documents/3439IDBG%20and%20SDGs%20(Ahmad%20and%20Khotamov%20Session%204).pdf accessed October 30, 2018.Google Scholar
Kahf, M. (2010). Islamic Finance Contracts. Dubai: Al Manhal.Google Scholar
Karim, S. The Islamic Moral Economy: A Study of Islamic Money and Financial Instruments. Florida: Universal-Publishers.Google Scholar
Kettell, B. (2011). Case Studies in Islamic Banking and Finance, 550 vols. Chichester: John Wiley & Sons.CrossRefGoogle Scholar
Khan, M. and Porzio, M., eds., (2010). Islamic Banking and Finance in the European Union: A Challenge, Studies in Islamic Finance, Accounting and Governance. Cheltenham: Edward Elgar Publishing.CrossRefGoogle Scholar
Khan, N. and Jareen, S. (2015). The Waqf and Human Security in Muslim Majority Countries: Traditions, Modern Practices, and Challenges. In Hasan, S, ed., Human Security and Philanthropy: Islamic Perspectives and Muslim Majority Country Practices. New York: Springer.Google Scholar
Khazanah Nasional Berhad (2017). ‘Khazanah to Issue Second Tranche of Sustainable and Responsible Investment (Sri) Sukuk’ Press Release available at www.khazanah.com.my/Media-Downloads/News-Press-Releases/2017/Khazanah-to-issue-second-tranche-of-Sustainable-an accessed August 24, 2018.Google Scholar
Leeuwen, R. (1999). Waqfs and Urban Structures: The Case of Ottoman Damascus, Volume 11 of Studies in Islamic Law and Society. Leiden: Brill.CrossRefGoogle Scholar
Mohieldin, M., Iqbal, Z. Rostom, A. and Fu, X. (2012) The Role of Islamic Finance in Enhancing Financial Inclusion in Organization of Islamic Cooperation Countries. Islamic Economic Studies 20, 55120.Google Scholar
Malaysia World’s Islamic Finance Marketplace (MIFC) (2017). ‘Sukuk Going Green: Malaysia Continues to Drive Innovation’ available at www.mifc.com/index.php?ch=28&pg=72&ac=187&bb=uploadpdf accessed August 24, 2018.Google Scholar
McChesney, R. (2014). Waqf in Central Asia: Four Hundred Years in the History of a Muslim Shrine, 1480–1889. New Jersey: Princeton University Press.Google Scholar
Miura, T. (2015). Dynamism in the Urban Society of Damascus: The Ṣāliḥiyya Quarter from the Twelfth to the Twentieth Centuries. Leiden: Brill.Google Scholar
Moffat, G., Bean, G. and Dewar, J. (2005). Trusts Law: Text and Materials Law in Context. 4th ed. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Mugasha, A. (2007). The Law of Multi-bank Financing: Syndicated Loans and the Secondary Loan Market. 2nd ed. Oxford: Oxford University Press.Google Scholar
Noor, Z. and Pickup, F. (2017). ‘The Role of Zakat in Supporting the Sustainable Development Goals’ available at www.id.undp.org/content/indonesia/en/home/library/sustainable-development-goals/the-role-of-zakat-in-supporting-the-sustainable-development-goal.html accessed August 31, 2018.Google Scholar
The Qur’an.Google Scholar
Rahman, I. and Sulfia, D. (2015). Islamic Banking and Finance. Hamburg: Anchor Academic Publishing.Google Scholar
Ruttan, V. (2003). Social Science Knowledge and Economic Development: An Institutional Design Perspective. Michigan: University of Michigan Press.Google Scholar
Sadiq, R. and Mushtaq, A. (2015). The Role of Islamic Finance in Sustainable Development. Journal of Islamic Thought and Civilization, 5, 4665.CrossRefGoogle Scholar
Safari, M., Ariff, M. and Mohamad, S. (2014). Sukuk Securities: New Ways of Debt Contracting. The Wiley Finance Series. Singapore: John Wiley & Son.Google Scholar
Seear, M. and Ezezika, O. (2017). An Introduction to Global Health. Toronto: Canadian Scholars’ Press.Google Scholar
Tag El-Din, S. (2013). Maqasid Foundations of Market Economics, Edinburgh Guides to Islamic Finance. Edinburgh: Edinburgh University Press.Google Scholar
The Economist Intelligence Unit (2015). ‘Mapping Africa’s Islamic Economy’ available at www.eiuperspectives.economist.com/sites/default/files/MappingAfricasIslamicEconomy.pdf accessed August 4, 2018.Google Scholar
The Standing Committee for Economic and Commercial Cooperation of the Organization of the Islamic Cooperation (COMCEC) (2017). Report on the Special Program for the Development of Africa (SPDA) available at www.comcec.org/en/wp-content/uploads/2017/04/33-FC-IDB-SPDA.pdf accessed August 18, 2018.Google Scholar
Ullah, K. and Al-Karaghouli, W. (2017). Understanding Islamic Financial Services: Theory and Practice. London: Kogan Page Publishers.Google Scholar
United Nations (2014a). ‘Report of the Intergovernmental Committee of Experts on Sustainable Development Financing’ available at www.un.org/esa/ffd/wp-content/uploads/2014/10/ICESDF.pdf accessed October 30, 2018.Google Scholar
United Nations (1987). ‘Report of the World Commission on Environment and Development: Our Common Future’ available at www.un-documents.net/our-common-future.pdf accessed August 4, 2018.Google Scholar
United Nations (2015). ‘Transforming Our World: the 2030 Agenda for Sustainable Development’ available at www.un.org/ga/search/view_doc.asp?symbol=A/RES/70/1&Lang=E accessed October 30, 2018.Google Scholar
United Nations (2014b). ‘World Investment Report 2014: Investing in the SDGs: An Action Plan’ available at http://unctad.org/en/PublicationsLibrary/wir2014_en.pdf accessed August 4, 2018.Google Scholar
Visser, H. (2009) Islamic Finance: Principles and Practice. Cheltenham: Edward Elgar Publishing.Google Scholar
Visser, H. (2013). Islamic Finance: Principles and Practice. 2nd ed. Cheltenham: Edward Elgar Publishing.CrossRefGoogle Scholar
Weber, B, Alfen, H. and Staub-Bisang, M. (2016). Infrastructure as an Asset Class: Investment Strategy, Sustainability, Project Finance and PPP, The Wiley Finance Series. 2nd ed. Chichester: John Wiley & Sons.Google Scholar
World Bank and Securities Commission Malaysia (2017). ‘Report on Islamic Finance and Public-Private Partnership for Infrastructure Development’ available at http://documents.worldbank.org/curated/en/792701518619005045/pdf/123425-WP-P157703-PUBLIC.pdf accessed August 24, 2018.Google Scholar
World Bank Group: Ahmed, H., Mohieldin, M., Verbeek, J., and Aboulmagd, F. (2015). ‘On the Sustainable Development Goals and the Role of Islamic Finance Policy Research Working Paper 7266’ available at http://documents.worldbank.org/curated/en/442091467999969424/On-the-sustainable-development-goals-and-the-role-of-Islamic-finance accessed August 24, 2018.Google Scholar
World Bank (2014). ‘Global Financial Development Report 2014: Financial Inclusion’ available at http://siteresources.worldbank.org/EXTGLOBALFINREPORT/Resources/8816096–1361888425203/9062080–1364927957721/GFDR_2014_Concept_Note_Final.pdf accessed August 5, 2018.Google Scholar
World Bank (2008). ‘MIGA and Islamic Finance: Doraleh Container Terminal Project, Djibouti (English)’ available at http://documents.worldbank.org/curated/en/869821468026341157/MIGA-and-Islamic-finance-Doraleh-Container-Terminal-Project-Djibouti accessed August 18, 2018.Google Scholar
World Bank (2017). ‘Mobilizing Islamic Finance for Infrastructure Public-Private Partnerships’ available at http://documents.worldbank.org/curated/en/898871513144724493/Mobilizing-Islamic-finance-for-infrastructure-public-private-partnerships accessed August 18, 2018.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×