The main objective of this study is to explore the Islamic Microfinance Instrumentsin achieving the Sustainable DevelopmentGoals (SDGs) in Bangladesh. The methodology of this study is based on secondary data includingexisting relevant literature, andannual reportsof different financial institutions. The findings of this study show that Islamic microfinance institutions have a broader scope to attainSDGs through their various investment modes.The study categorizes the Islamic microfinance instruments into four broadly parts which are profit and loss sharing financing, non-profit & loss sharing financing, Islamic social enterprise based financing and charity based financing which havea positive effect to the real sector of the sustainable economy that will lead towards achieving SDGs. The Islamic Microfinance institutions are continuing their efforts in attaining SDGs through their various products. With growing the potentiality, Islamic microfinance has both direct and indirect impacts on ensuring economic development, environmental sustainability, and social inclusion by creating employment opportunity, spreading knowledge and skills, making self-dependent, protecting from adverse effects. The paper also tries to put recommendations to reduce the challenges of Islamic microfinance acting as impediments to achieving the SDGs.
Source: International Journal of Islamic Business & Management
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