Islamic sustainable finance: its experience from SAARC

Mohammad, Habibullah and Haron, Razali and Md, Atiullah (2024) Islamic sustainable finance: its experience from SAARC. In: Islamic Finance and Sustainable Development (A Global Framework for Achieving Sustainable Impact Finance). Islamic Business and Finance Series (2023055366). Routledge, New York, pp. 24-31. ISBN 9781032743073

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Abstract

This article examines Islamic sustainable finance, which was essential to the SAARC countries' economic growth. Thus, the focus of the research is on regional organization and geopolitical union between the states or governments in South Asia, which is known by its full name as the South Asian Association for Regional Cooperation (SAARC). The member states of SAARC are Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka. Despite having abundant natural resources, the SAARC countries have stumbled upon numerous obstacles on the path of growing their economies. The findings show that, apart from sustainable development, Islamic finance has little impact on the GDP, poverty reduction, and economic development of the SAARC countries. Thus, with this mediocre impact of Islamic finance on the gross domestic product, the reduction of poverty, and overall economic growth of most nations, but sustainable development will not happen unless SAARC countries can ensure that its development partners are ready to cooperate for mutual benefit. To ascertain the sustainability of thriving Islamic finance sector in SAARC countries, primary and secondary sources as well as the governments’ policies are examined using Industrial experiences and solutions approach and policy analysis. The essential function of Islamic finance is to offer to the investors and businesses with financial services that stimulate social and financial stability and a steady financial development. Small-scale businesses can sometimes receive medium-term financial help from Islamic Financial Institutions (IFIs) in addition to short-term loans. Most of the IFIs have dedicated departments within their organizational structure to handle the financial requirements of small-scale industrial companies. Therefore, Islamic finance investments facilitate for trade and commerce, provide capital, finance industry and trade, aid in the development of agriculture, fund consumer spending, and assist monetary policy among the SAARC countries.

Item Type:	Book Chapter
Uncontrolled Keywords:	Sustainable Development, Economic Growth, Islamic Finance, Domestic Product, Industry, and Trade
Subjects:	BPH Islamic Economics H Social Sciences > HB Economic Theory > HB126.4 Islamic Economics H Social Sciences > HG Finance > HG1501 Banking H Social Sciences > HG Finance > HG201 Money H Social Sciences > HG Finance > HG201 Money H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance H Social Sciences > HG Finance > HG4001 Financial management. Business finance. Corporation finance. H Social Sciences > HJ Public Finance > HJ1438 Public Finance In Islam
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr. Mohammad Habibullah
Date Deposited:	23 Aug 2024 15:39
Last Modified:	10 Sep 2024 10:40
URI:	http://irep.iium.edu.my/id/eprint/113927

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