The contribution of Islamic banking and its role in achieving sustainable development in Iraq: an analytical study in light of the experience of Al-Tayf Islamic Bank

Abstract

 This study aims to analyze the contribution of Islamic banking to sustainable development in Iraq, through an applied case study of Al-Taif Islamic Bank. The research adopts a descriptive-analytical approach supported by advanced statistical tools, including linear regression and Pearson correlation, to measure the extent to which Islamic banking practices support the three dimensions of sustainable development: economic, social, and environmental.

The findings reveal that Islamic banking significantly contributes to the economic and social dimensions, particularly through financing small enterprises and promoting social justice, while its contribution to the environmental dimension remains limited. Statistical analysis indicates a strong and statistically significant correlation between Islamic banking and sustainable development indicators, highlighting the relevance of this financial model in the Iraqi context.

The study recommends strengthening the role of Islamic banks in national development policies, developing financial products that address environmental sustainability, and enhancing institutional partnerships to achieve balanced and inclusive development aligned with Iraq’s socio-economic realities.