HIGHLIGHTING THE CONVERGENCE BETWEEN THE PRINCIPLES OF ISLAMIC FINANCE AND THE PRINCIPLES OF SUSTAINABLE FINANCE

Abstract

Sustainable finance and Islamic finance hold significant potential to facilitate sustainable development. Both systems are continually being developed, researched, and advanced by academics, global industry players, and policymakers. However, to the best of the author’s knowledge, a limited amount of research specifically explores the convergence between the principles of Islamic finance and sustainable finance. Therefore, this study aims to examine and highlight the convergence between the principles of the two concepts as they continue developing better financial models based on ethical values. Using a qualitative approach and based on comparative research, the paper found several convergences between the principles of sustainable finance and the principles of Islamic finance. The goals of the two concepts show equal concern for people and the planet. Sustainable and inclusive development are the main points of both concepts. Finally, this study argues that Islamic finance itself promises a more sustainable model for the financial industry.