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Analyzing the Role of Islamic Finance in Kuwait Regarding Sustainable Economic Development in COVID-19 Era

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  • Salah Alhammadi

    (Business Studies Department, Arab Open University, 6 St, Al-Ardiya Industrial Area, Al Farwaniyah 130333, Kuwait)

Abstract

The aim of the present study was first to consider the impact of COVID-19 on Kuwait’s economy. Second, it attempted to examine the role of Islamic banking and finance in achieving socioeconomic justice and attaining best practices by securing social goods. Hence, the research assessed how Islamic banking and finance can help in reconstructing the economy based on Maqasid Al-Shari’ah (higher ethical objectives) to redevelop social, economic, and environmental welfare, especially in the COVID-19 era. A theoretical approach was adopted, namely, the grounded theory method (GTM), to explore COVID-19 related solutions for achieving sustainable economic development. The findings show that Islamic banking and finance can be employed to mitigate the impact of coronavirus and can be used as an alternative financial system to support both affected people and entrepreneurs. The paper expands on previous literature discussing the role of Islamic finance in management strategies through Islamic ethical objectives, with a particular focus on Kuwait’s post-COVID-19 era. This research can help policymakers to develop mechanisms and supporting approaches for Kuwait’s economy.

Suggested Citation

  • Salah Alhammadi, 2022. "Analyzing the Role of Islamic Finance in Kuwait Regarding Sustainable Economic Development in COVID-19 Era," Sustainability, MDPI, vol. 14(2), pages 1-11, January.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:2:p:701-:d:720802
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    References listed on IDEAS

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    1. Arman, Husan & Iammarino, Simona & Ibarra-Olivo, J. Eduardo & Lee, Neil, 2021. "Breaking out of the innovation trap? Towards promoting private R&D investment in Kuwait," LSE Research Online Documents on Economics 109010, London School of Economics and Political Science, LSE Library.
    2. Amin Jan & Mário Nuno Mata & Pia A. Albinsson & José Moleiro Martins & Rusni Bt Hassan & Pedro Neves Mata, 2021. "Alignment of Islamic Banking Sustainability Indicators with Sustainable Development Goals: Policy Recommendations for Addressing the COVID-19 Pandemic," Sustainability, MDPI, vol. 13(5), pages 1-38, March.
    3. Ghulam Ghouse & Aribah Aslam & Muhammad Ishaq Bhatti, 2021. "Role of Islamic Banking during COVID-19 on Political and Financial Events: Application of Impulse Indicator Saturation," Sustainability, MDPI, vol. 13(21), pages 1-17, October.
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    Cited by:

    1. Odeh Al-Jayyousi & Evren Tok & Shereeza Mohamed Saniff & Wan Norhaniza Wan Hasan & Noora Abdulla Janahi & Abdurahman J. Yesuf, 2022. "Re-Thinking Sustainable Development within Islamic Worldviews: A Systematic Literature Review," Sustainability, MDPI, vol. 14(12), pages 1-26, June.

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