Islamic Social Finance

Islamic Social Finance refers to financial practices guided by Islamic principles that aim to promote social welfare and reduce inequality. It includes mechanisms like Zakat (obligatory charity), Sadaqah (voluntary charity), and Qard Hasan (benevolent loans), which fund healthcare, education, and poverty alleviation. These instruments encourage sharing wealth ethically, fostering community support, and ensuring resources are used for social benefit, aligning economic activities with moral and spiritual values without interest or exploitation. Islamic Social Finance thus promotes both financial stability and social justice within Muslim communities and beyond.