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Reforming Islamic Finance for Achieving Sustainable Development Goals إصلاح التمويل الإسلامي لتحقيق أهداف التنمية المستدامة

Author

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  • Tariqullah Khan

    (Professor of Islamic Finance, College of Islamic Studies, Hamad Bin Khalifa University, Qatar)

Abstract

The paradigm of Islamic economics and finance is guided by the motivation of comprehensive human development (CHD) and its preservation as manifested in the objectives of Sharīʿah (maqāṣid al-Sharīʿah). However, the real world free-market economies are driven by the linear economy paradigm under the influence of Hotelling’s 1931 famous work concerning the economics of exploiting natural resources, in which, the ecological environment is not recognized as a resource. The global financial architecture is designed to protect and preserve the linear economic paradigm. In practice, Islamic finance has also remained a ḥalāl sub-set of this system. The resultant social, environmental, and governance imbalances have recently led to different initiatives sponsored by the UN including the Sustainable Development Goals (SDGs). Like the maqāṣid, the SDGs also aim at achieving and preserving human development. In practice, for the first time, a real paradigm shift from the linear to the ecological/circular economy is noticeably taking place, also inducing the transformation of the financial architecture. In this paper, in a broader perspective, we use the CHD and SDGs interchangeably, and discuss a number of paradigmatic and regulatory reforms that will be required to enhance the actual effectiveness of Islamic finance in achieving the ideals of CHD, and the SDGs at large. The paper in fact outlines a wider scope of the potential reform initiatives. يسترشد نموذج الاقتصاد والتمويل الإسلامي بدوافع التنمية البشرية الشاملة (CHD) وحفظها وفقاً لمقاصد الشريعة الإسلامية، ومع ذلك فإن اقتصادات السوق الحر في العالم يحركها نموذج الاقتصاد الخطي تحت تأثير نظرية هوتلينغ في عام 1931م المتعلقة باقتصاديات استغلال الموارد الطبيعية، حيث لا يتم الاعتراف بالبيئة الإيكولوجية كمورد، إذ تم تصميم الهيكلة المالية العالمية لحماية وحفظ النموذج الاقتصادي الخطي. ومن الناحية العملية ظل التمويل الإسلامي أيضًا عبارة عن فرع بقى في هذا النظام بمسمي حلال. لقد أدت الاختلالات الاجتماعية والبيئية والحكومية في الآونة الأخيرة إلى المبادرات التي ترعاها الأمم المتحدة بما في ذلك أهداف التنمية المستدامة (SDGs) التي تسعى إلى تحقيق التنمية البشرية والمحافظة عليها وفقًا لمقاصد الشريعة الإسلامية. ومن الناحية العملية، ولأول مرة، يحدث تحول حقيقي فعلي من الاقتصاد الخطي إلى الإيكولوجي/الدائري بصورة ملحوظة، مما يحفز أيضًا تحويل الهيكلة المالية. نستخدم في هذه الورقة من منظور أوسع دوافع التنمية البشرية الشاملة (CHD) والتنمية المستدامة (SDGs) بشكل متبادل، ونناقش عددًا من الإصلاحات النموذجية والتنظيمية المطلوبة لتعزيز التأثير الحقيقي للتمويل الإسلامي في تحقيق التنمية البشرية الشاملة (CHD)، وأهداف التنمية المستدامة بشكل عام. كما تناقش الورقة بصورة أوسع مبادرات الإصلاح المحتملة.

Suggested Citation

  • Tariqullah Khan, 2019. "Reforming Islamic Finance for Achieving Sustainable Development Goals إصلاح التمويل الإسلامي لتحقيق أهداف التنمية المستدامة," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 32(1), pages 3-21, January.
    • Handle: RePEc:abd:kauiea:v:32:y:2019:i:1:no:1:p:3-21
    DOI: DOI:10.4197/Islec.32-1.1
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    References listed on IDEAS

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    1. Harold Hotelling, 1931. "The Economics of Exhaustible Resources," Journal of Political Economy, University of Chicago Press, vol. 39, pages 137-137.
    2. Chapra, Mohammad Umar, 2008. "The Islamic Vision of Development in the Light of the Maqasid Al-Shari'ah (Research Paper)," Occasional Papers 235, The Islamic Research and Teaching Institute (IRTI).
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    Cited by:

    1. Daud Mustafa, 2020. "Reforming Islamic Finance: Mainstreaming Underserved Segment and the Third Sector إصلاح التمويل الإسلامي: الشريحة غير المخدومة والقطاع الثالث," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 33(2), pages 137-144, July.
    2. Federica Lanzara, 2023. "Islamic Finance as Social Finance: A Bibliometric Analysis from 2000 to 2021," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(9), pages 107-107, February.
    3. Burhanudin Harahap & Tastaftiyan Risfandy & Inas Nurfadia Futri, 2023. "Islamic Law, Islamic Finance, and Sustainable Development Goals: A Systematic Literature Review," Sustainability, MDPI, vol. 15(8), pages 1-21, April.
    4. Aghilasse Kashi & Mohamed Eskandar Shah, 2023. "Bibliometric Review on Sustainable Finance," Sustainability, MDPI, vol. 15(9), pages 1-30, April.

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