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Islamic Banking and Finance: Promoting Inclusive Development Through Sustainable Practices and Trade Facilitation

Author

Listed:
  • Ali Keya Anami

    (Muslim University of Morogoro)

Abstract

This study examines the role of Islamic banking and finance in promoting inclusive development through sustainable practices and trade facilitation. Employing a qualitative research approach, the study analyzes academic literature, case studies, and industry reports to explore how Shariah-compliant banking principles such as risk-sharing, ethical investments, and prohibition of riba (interest) are operationalized to support economic participation and equitable growth. Key findings indicate that Islamic financial institutions enhance access to finance for underserved populations, foster ethical trade practices, and contribute to sustainable development objectives. Challenges, including regulatory inconsistencies, limited awareness of Shariah-compliant instruments, and gaps in digital adoption, are identified as constraints to maximizing impact. The study concludes that integrating sustainable and ethical practices within Islamic banking strengthens financial inclusion, supports trade facilitation, and promotes long-term economic resilience, while future research should focus on empirical assessments and digital innovation in Shariah-compliant finance.

Suggested Citation

  • Ali Keya Anami, 2026. "Islamic Banking and Finance: Promoting Inclusive Development Through Sustainable Practices and Trade Facilitation," East African Finance Journal, East African Finance Journal, vol. 5(1).
    • Handle: RePEc:cwk:eafjke:2026-04
    DOI: 10.59413/eafj/v5.i1.4
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    References listed on IDEAS

    as
    1. World Bank, 2020. "Leveraging Islamic Fintech to Improve Financial Inclusion," World Bank Publications - Reports 34520, The World Bank Group.
    2. Mohammad Nejatullah Siddiqi, 2006. "Islamic Banking And Finance In Theory And Practice: A Survey Of State Of The Art," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 13, pages 2-48.
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