ISLAMIC FINANCE AS A MECHANISM FOR SUSTAINABLE REGIONAL DEVELOPMENT IN THE CONTEXT OF SYSTEMIC TRANSFORMATIONS

Abstract

The article considers the potential of Islamic finance as an institution of the moral economy capable of serving as an infrastructural foundation for sustainable regional development. By comparing the principles of Islamic finance with the categories of the moral economy (responsibility, justice, intrinsic expediency, virtues), the authors substantiate the thesis that it is possible to create an alternative development model focused not only on macroeconomic growth but also on the moral reproduction of social, environmental, and economic relations. Particular attention is given to the mechanisms of waqf, zakat, interest-free microfinance, and sukuk in supporting the real sector, promoting inclusion, and facilitating redistribution. The conclusion is drawn regarding the applicability of the Islamic financial model in regional strategies aimed at comprehensive sustainability and the institutional revival of the moral foundations of economic activity.