The relevance of Islamic micro-finance in achieving the sustainable development goals

Abstract

Despite the impressive score card of the Millennium Development Goals (MDGs), it goes to suggest that the Sustainable Development Goals (SDGs) requires targeted efforts in reaching the most vulnerable people worldwide. In Muslim societies, Islamic Micro-finance has been regarded as an important tool for the empowerment of poor people especially women, towards developing micro enterprises. The main objective of this study is to explore the conceptual framework on the relevance of Islamic Microfinance in achieving the SDGs. This study identifies different products of Islamic Micro-finance used to address diverse deprivations, leading to individual’s personal development, increased productivity and income, and participation in economic and social life. The methodology of this study is based on analysis of relevant literatures. The finding of the study indicates that Islamic Micro-finance is a growing market niche with potentials to develop human capabilities towards empowerment, knowledge and skills, self-reliance and social cohesion. The empowerment enables the clients to manage their economic life effectively and reduce stress.