INTEGRATING ISLAMIC SOCIAL FINANCE (ZAKAT, WAQF, SADAQAH) WITH THE SUSTAINABLE DEVELOPMENT GOALS (SDGS) IN DEVELOPING NATIONS
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Developing Nations, Islamic Social Finance, Sustainable Development Goals
Abstract
Achieving the Sustainable Development Goals (SDGs) in developing nations remains constrained by limited fiscal capacity, governance challenges, and unequal access to development financing. Islamic Social Finance instruments—zakat, waqf, and sadaqah—offer ethically grounded mechanisms for wealth redistribution and social welfare that are normatively aligned with the objectives of sustainable development. However, their integration with formal SDG frameworks has not been systematically institutionalized. This study aims to examine how Islamic Social Finance can be effectively integrated with the SDGs in developing nations and to identify institutional and governance factors shaping this integration. The study employed a qualitative–comparative research design using secondary data, policy documents, and selected case studies from developing countries. An integrative mapping framework was applied to analyze the alignment between Islamic Social Finance instruments and specific SDG goals and targets. The findings reveal that zakat and sadaqah primarily support short-term poverty alleviation and social protection, while waqf demonstrates stronger potential for long-term development outcomes. Integration with the SDGs remains largely implicit and uneven, with stronger alignment observed in institutions possessing robust governance and coordination mechanisms. The study concludes that Islamic Social Finance can function as a strategic complement to SDG financing when supported by institutional reform, clear governance structures, and systematic alignment with development indicators. Strengthening this integration enhances both ethical legitimacy and sustainable development impact.
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Copyright (c) 2026 Ikhyanuddin Ikhyanuddin, Zuraida Zuraida, Hendro Sukoco, Ayesha Begum
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