Islamic Finance and Sustainable Economic Development: Exploring the Role of Shariah-Compliant Financial Systems in Promoting Inclusive Growth

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Islamic finance emerged as a rapidly growing ethical financial system that supported sustainable economic development and inclusive growth through Shariah-compliant principles. This study examined the role of Islamic finance in promoting financial inclusion, economic stability, and sustainable development outcomes. A quantitative descriptive design was applied, and primary data was collected from a sample of 300 respondents working in Islamic banking and financial institutions. The findings showed high mean values for Islamic finance practices (4.18 ± 0.62), sustainable economic development (4.12 ± 0.65), inclusive economic growth (4.05 ± 0.68), financial inclusion (4.20 ± 0.60), and ethical investment practices (4.10 ± 0.66). The results indicated that Islamic finance significantly contributed to SME development (4.22 ± 0.61), poverty reduction (4.14 ± 0.63), infrastructure financing (4.16 ± 0.64), and alignment with Sustainable Development Goals (4.23 ± 0.58). The study also found strong perceptions regarding economic stability (4.19 ± 0.60) and social welfare enhancement (4.21 ± 0.59), highlighting the broader developmental impact of Islamic financial systems. Islamic finance demonstrated a strong role in promoting equitable income distribution, financial access, and sustainable investment practices. The study concluded that Shariah-compliant financial systems functioned as a viable framework for achieving inclusive and sustainable economic development, particularly in emerging economies where financial exclusion remained a key challenge. References Adzimatinur, F., & Gloriman Manalu, V. (2021). The effect of Islamic financial inclusion on economic growth: a case study of Islamic banking in Indonesia. Budapest International Research and Critics Institute-Journal (BIRCI-Journal). Ben Jedidia, K., & Ghroubi, M. (2024). Islamic finance and SDGs: Bibliometric review and future research agenda. Journal of Chinese Economic and Business Studies, 23(3), 329–362. https://doi.org/10.1080/14765284.2024.2445959 Budiharjo, A., Ismail, N. A., & Rahim, H. (2024). Convergence of Islamic finance and sustainable finance principles. International Journal of Islamic Economics and Finance Research, 7(2), 19–30. https://doi.org/10.53840/ijiefer177 Farah, A. A., Mohamed, M. A., Ali Farah, M., Yusuf, I. A., & Abdulle, M. S. (2025). Impact of Islamic banking on economic growth: a systematic review of SCOPUS-indexed studies (2009–2024). Cogent Economics & Finance, 13(1), 2490819. Franciosi, L. M. (2025). Islamic finance and sustainable development: Key ethical features and proactive initiatives promoting financial inclusion. European Journal of Islamic Finance, 12(2), 30–47. https://doi.org/10.13135/2421-2172/11175 Garbo, A., & Hasanah, S. M. (2025). Mapping Islamic banking and sustainable development research: A Scopus-based bibliometric and VOSviewer keyword co-occurrence cluster analysis (2008–2024). Journal of Islamic Economics Lariba, 11(2). Harun, H. F., & Rahmat, N. (2024). Islamic finance for sustainable development: A mixed-methods systematic review and bibliometric analysis of SDG alignment. International Journal of Sustainable Development and Planning, 20(1), 99–107. https://doi.org/10.18280/ijsdp.200111 Ingkap, H., & Masuwd, M. (2025). The Role of Islamic Economics in Promoting Inclusive and Sustainable Development. AL-FALAH: Journal of Islamic Economics, 2(10), 302-319. Khandakar, H., Hasnat, M. A., Rahman, M. A., Aubhi, R. U. H., Babur, A., & Hasan, K. K. (2025). Reforming Islamic financial standards for inclusive and sustainable development: a Maturidi creed perspective on behaviour, equity and justice. International Journal of Ethics and Systems. Mansour, N., & Bujosa Vadell, L. M. (2023). Islamic sustainable finance, law and innovation. Springer. https://doi.org/10.1007/978-3-031-27860-0 Mohamed, Z., & Redzuan, N. H. (2025). Financial inclusion and Islamic banks: Bibliometric analysis. Journal of Islamic Finance, 14(1), 14-27. Naseem, T., Hasan, H., & Ejaz, N. (2025). The impact of Islamic finance on inclusive growth in Pakistan. Journal of Islamic Business and Management, 15(2), 138–174. https://doi.org/10.26501/jibm/2025.1502-003 Rafiq-uz-Zaman, M. (2022a). Redesign for 21st-century skills: Preparing learners for a rapidly changing workforce. Journal of Business Insight and Innovation, 1(2), 89–102. Retrieved from https://insightfuljournals.com/index.php/JBII/article/view/58 Rafiq-uz-Zaman, M. (2022b). Strategic upskilling: Fusing technical expertise with human capabilities. Journal of Business Insight and Innovation, 1(1), 76–86. https://doi.org/10.5281/zenodo.17766381 Rafiq-uz-Zaman, M. (2024). Leveraging skill development and STEAM innovation for business growth: A strategic framework for enhancing workforce performance in emerging markets. Journal of Business Insight and Innovation, 3(1), 48–63. Retrieved from https://insightfuljournals.com/index.php/JBII/arti

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DOI

10.63544/ijss.v5i3.285

Žurnal

Inverge Journal of Social Sciences

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Maglumat çeşmeleri

• unpaywall10.63544/ijss.v5i3.2852026-07-10T14:52:44.791870+03:00
• openalexW71602141382026-07-10T14:43:37.864995+03:00