Islamic Financial Institutions and Their Role in Contributing to Development: Challenges and Ways to Address Them

Abstract

 Economic development financing is a fundamental pillar for achieving sustainable growth and social well-being. It requires the provision of sufficient financial resources to finance productive projects, infrastructure, and foster innovation. In this context, the Islamic approach to development financing emerges as a distinct model that aligns with ethical values ​​and social justice. It is based on the principles of Islamic Sharia, which prohibit interest (riba) and encourage risk-sharing and productive investment. Therefore, studying economic development financing from an Islamic perspective highlights fair financing alternatives that contribute to achieving comprehensive development, while highlighting the potential of Islamic finance to enhance the economy's ability to address financial and economic challenges, in accordance with the values ​​of justice, equality, and social solidarity within the bounds of Islamic Sharia.