Islamic Social Finance and Sustainable Development – Integrating Islamic Commercial Products with Islamic Social Finance instruments​; A Critical Analysis

This paper examines the integration of Islamic commercial finance with Islamic social finance to support sustainable development. It explores blended finance approaches and their alignment with SDGs and ESG frameworks, while noting their limitations from an Islamic perspective.

It emphasizes zakat as the core of Islamic social finance and highlights its potential for wealth redistribution and poverty reduction, despite practical implementation challenges.

The study concludes that combining Islamic commercial and social finance is essential for achieving a holistic, just, and sustainable economic system based on Islamic principles.