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Islamic Finance and Sustainable Economy: A New Model of Islamic Financial Ecosystem

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Islamic Finance and Sustainable Development

Abstract

The study intends to propose an Islamic financial ecosystem that supports Sustainable Development Goals (SDGs). This study uses a qualitative research method employing content analysis and literature-based approach in deriving inferences and insights. Extensive literature related to SDGs, basic objectives of the existence of Islamic finance, and Maqashid al-Shariah are reviewed, analyzed, and used as references to create a proposed Islamic financial ecosystem that supports SDGs. The proposed ecosystem integrates Islamic commercial and social finance in order to improve the people’s welfare. The proposed model also provides evidence on how Islamic financial system can play a role as a catalyst for sustainability in the economy. This study can be used by the governments of OIC countries as a reference in developing a financial ecosystem that helps them in achieving most of the SDGs by 2030. The study also benefits regulators of the financial system in OIC countries as a reference for them to create a stable and resilient financial system that can ensure sustainability in the economy.

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Notes

  1. 1.

    See https://www.djppr.kemenkeu.go.id/uploads/files/dmodata/in/6Publikasi/Offering%20Circular/ROI%20Green%20Bond%20and%20Green%20Sukuk%20Framework.pdf. 10/06/2020.

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Author information

Authors and Affiliations

  1. National Committee for Islamic Economy and Finance (KNEKS), Gunadarma University, Jakarta, Indonesia

    Sutan Emir Hidayat

  2. National Committee for Islamic Economy and Finance (KNEKS), Jakarta, Indonesia

    Yodi Izharivan & Citra Atrina Sari

Authors
  1. Sutan Emir Hidayat
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  2. Yodi Izharivan
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  3. Citra Atrina Sari
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Corresponding author

Correspondence to Sutan Emir Hidayat .

Editor information

Editors and Affiliations

  1. Department of Economics and Finance, University of New Orleans, New Orleans, LA, USA

    M. Kabir Hassan

  2. Faculty of Economics, Department of Business Administration, Istanbul University, Istanbul, Turkey

    Mehmet Saraç

  3. Institute of Business Administration Karachi, Karachi, Pakistan

    Ashraf Khan

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Hidayat, S.E., Izharivan, Y., Sari, C.A. (2021). Islamic Finance and Sustainable Economy: A New Model of Islamic Financial Ecosystem. In: Hassan, M.K., Saraç, M., Khan, A. (eds) Islamic Finance and Sustainable Development . Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-76016-8_11

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  • DOI: https://doi.org/10.1007/978-3-030-76016-8_11

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-76015-1

  • Online ISBN: 978-3-030-76016-8

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

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