Exploring potential of Islamic social finance

Islamic finance is the area of finance that complies with Shariah guidelines and the Islamic commercial law while avoiding transactions involving interest, speculation, gambling and artificial financial instruments. Generally, when we refer to Islamic finance, our focus is on the commercial aspect of finance that includes Islamic banking, Islamic insurance, Shariah-compliant mutual funds and Sukuk. According to the London Stock Exchange Group reports, the size of Islamic commercial finance has surpassed $4.5 trillion globally and it is expected to reach $6.6 trillion by 2027. However, the domain of Islamic finance also includes Islamic social finance, an integral area that not only broadens the reach of Islamic finance to almost all Muslims but also has the potential to contribute at the global level towards sustainable growth and economic development of society. Islamic social finance is a multifaceted approach that blends Islamic finance principles with a focus on principles of justice, equity, social responsibility and community welfare. It aims to address socio-economic inequalities, promote sustainable development and foster community cohesion.