IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v17y2024i6p236-d1410093.html

Does Islamic Sustainable Finance Support Sustainable Development Goals to Avert Financial Risk in the Management of Islamic Finance Products? A Critical Literature Review

Author

Listed:
  • Lukman Raimi

    (Department of Business Administration (Entrepreneurship), Universiti Brunei Darussalam, Jalan Tungku Link, Gadong BE1410, Brunei)

  • Ibrahim Adeniyi Abdur-Rauf

    (Department of Shari’ah, Universiti Sultan Zainal Abidin, Terengganu 21300, Malaysia)

  • Saheed Afolabi Ashafa

    (Department of Religions, Osun State University, Osogbo 210001, Nigeria)

Abstract

Policymakers, governments, and Islamic financial institutions are increasingly focusing on sustainable development, leading to an in-depth examination of current sustainable finance practices, projects, and product portfolios. This study examines the role of Islamic sustainable finance (ISF) in promoting Sustainable Development Goals (SDGs) to avert financial risk in the management of Islamic Finance Products (ISFP). Through qualitative analysis, the study conducts a critical literature review (CLR) that incorporates conceptual, theoretical, and empirical perspectives on ISF and SDGs and addresses two specific research questions. Our study examines over 48 journals from 2010 to 2024 and provides insights into how ISF advances the SDGs across all environmental, social, and economic dimensions. It also highlights that ISF promotes green entrepreneurship by investing in sustainable projects, supporting SMEs, and offering alternative financing. ISF also promotes financial stability, justice, and growth and is consistent with the principles of Maqasid al-Shari’ah. Key ISF mechanisms that promote the SDGs include Islamic Green Sukuk, Socially Responsible Investment Funds, Islamic Microfinance, and Islamic Impact Investing. Integrating Islamic ethical principles into financial activities is crucial for inclusive and sustainable economic development. These qualitative insights are critical for policymakers, Islamic financial institutions, Halal entrepreneurs, environmentalists, and investors to understand the potential of Islamic social finance (ISF) to support sustainable practices, projects, and portfolios. Furthermore, the ISFs alignment with Maqasid al-Shari’ah highlights its importance in promoting sustainable development while mitigating financial risk in ISFPs management. The study offers robust contributions to the existing literature to provide comprehensive insights into how ISF can be effectively used to promote SDGs.

Suggested Citation

  • Lukman Raimi & Ibrahim Adeniyi Abdur-Rauf & Saheed Afolabi Ashafa, 2024. "Does Islamic Sustainable Finance Support Sustainable Development Goals to Avert Financial Risk in the Management of Islamic Finance Products? A Critical Literature Review," JRFM, MDPI, vol. 17(6), pages 1-15, June.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:6:p:236-:d:1410093
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/17/6/236/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/17/6/236/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lukman Raimi & Ifeatu Uzodinma, 2020. "Trends in Financing Programmes for the Development of Micro, Small and Medium Enterprises (MSMEs) in Nigeria: A Qualitative Meta-synthesis," FGF Studies in Small Business and Entrepreneurship, in: Alexandra Moritz & Joern H. Block & Stephan Golla & Arndt Werner (ed.), Contemporary Developments in Entrepreneurial Finance, pages 81-101, Springer.
    2. Felicia HM Liu & Karen PY Lai, 2021. "Ecologies of green finance: Green sukuk and development of green Islamic finance in Malaysia," Environment and Planning A, , vol. 53(8), pages 1896-1914, November.
    3. Buerhan Saiti & Adama Dembele & Mehmet Bulut, 2021. "The global cashwaqf: a tool against poverty in Muslim countries," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 13(3), pages 277-294, February.
    4. repec:eme:hppsss:v:31:y:2015:i:3:p:272-298 is not listed on IDEAS
    5. Raziyeh Reza-Gharehbagh & Sobhan Arisian & Ashkan Hafezalkotob & Ahmad Makui, 2023. "Sustainable supply chain finance through digital platforms: a pathway to green entrepreneurship," Annals of Operations Research, Springer, vol. 331(1), pages 285-319, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:bcp:journl:v:8:y:2024:i:9:p:3632-3638 is not listed on IDEAS
    2. Amirul Syahidah Asmadi & Intan Sazrina Saimy, 2024. "Integration of ESG Principles in Halal Logistics: Advancing Sustainable Practices in the Islamic Supply Chain," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(12), pages 1791-1805, December.
    3. repec:bcp:journl:v:9:y:2025:i:10:p:4929-4937 is not listed on IDEAS
    4. Uran Zh. Ergeshbaev & Dilobar M. Mavlyanova & Yulia G. Leskova & Elena G. Popkova & Elena S. Petrenko, 2025. "Sectoral Counter-Cyclical Approach to Financial Risk Management Based on CSR for Sustainable Development of Companies," Risks, MDPI, vol. 13(2), pages 1-72, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liang Wang & Bo Ma, 2025. "Research on Green Supply Chain Financing Decisions Based on Inter-Chain Competition and Implicit Equity Consideration," Mathematics, MDPI, vol. 13(20), pages 1-39, October.
    2. Shilpy & Avadhesh Kumar, 2025. "Evaluating Supply Chain Finance Instruments for SMEs: A Stackelberg Approach to Sustainable Supply Chains Under Government Support," Sustainability, MDPI, vol. 17(15), pages 1-25, August.
    3. Ruxia Lyu & Sobhan Arisian & Zhitang Li & Mohammad Sadegh Taskhiri & Reza Kiani Mavi, 2026. "The role of agricultural biomass in supply chain decarbonization," Annals of Operations Research, Springer, vol. 359(2), pages 1935-1973, April.
    4. Nasir Sultan & Norazida Mohamed & Mervyn Martin & Hafizah Mohd Latif, 2023. "Virtual currencies and money laundering: existing and prospects for jurisdictions that comprehensively prohibited virtual currencies like Pakistan," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 27(2), pages 395-412, May.
    5. Ganlin Pu & Md. Qamruzzaman & Ahmed Muneeb Mehta & Farah Naz Naqvi & Salma Karim, 2021. "Innovative Finance, Technological Adaptation and SMEs Sustainability: The Mediating Role of Government Support during COVID-19 Pandemic," Sustainability, MDPI, vol. 13(16), pages 1-27, August.
    6. repec:bcp:journl:v:8:y:2024:i:9:p:3743-3756 is not listed on IDEAS
    7. Wu, Huamin & Weng, Jiaxiang & Li, Guo & Zheng, Hong, 2024. "Green subsidy Strategies and fairness concern in a Capital-Constrained supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 192(C).
    8. Harmanpreet Singh & Pawan Kumar & Leo Paul Dana, 2025. "The green entrepreneurship landscape: drivers, outcomes, and future directions," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-63, December.
    9. Yalcin, Haydar & Demirhan, Dilek & Aracioglu, Burcu & Daim, Tugrul U. & Xing, Zeyu & Meissner, Dirk, 2026. "FinTech and the green transition: Exploring pathways to ignite innovation for carbon neutrality in global supply chains," Technology in Society, Elsevier, vol. 84(C).
    10. Alfonso Siano & Lukman Raimi & Maria Palazzo & Mirela Clementina Panait, 2020. "Mobile Banking: An Innovative Solution for Increasing Financial Inclusion in Sub-Saharan African Countries: Evidence from Nigeria," Sustainability, MDPI, vol. 12(23), pages 1-24, December.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:17:y:2024:i:6:p:236-:d:1410093. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.