Of the 17 Sustainable Development Goals (SDGs) of the United Nations, the first 11 relate directly to Islamic economics and finance. Indeed, they are a perfect fit with the purpose and principles of Islamic finance. Moreover, the Islamic finance industry has contemporary products to address these SDGs. This paper presents current product development and implementation examples of Islamic finance in the context of SDGs. In this regard, success with SDGs can be attained through resource mobilization. Reality suggests that such mobilization requires product development and successful SDG programs. Further, in order to attract resources, SDG programs need to provide convincing results. The most effective programs, as presented in this paper, should be financed with suitably employed resource mobilization tools. Islamic finance can address the first 11 SDGs by harnessing modern resource mobilization products to these programs.
Murabaha, the most popular Islamic finance contract, has been subject of many studies. In its simplest form it is buying and selling with profit and has two forms: Asset based and Asset backed. Upto now, there are many studies on asset based Murabaha sale, which consist of buying a product and selling, transferring ownership, to loan seeker simultaneously in exchange of debt obligation. With this structure asset based Murabaha has been subject of much criticism. This article introduces the concept of asset backed Murabaha sale, by which financier holds the title of product until final sale to loan seeker, from a case of sugar structured trade commodity financing. In addition to discussion of general risk issues, special focus on commodity price risk management: margin calculation and margin call methods proposed so that Islamic finance industry can manage asset backed Murabaha contract without recourse to additional security of bank guarantee, mortgages, etc. or disallowed, by Islam, derivative based commodity price hedging products.
The purpose of this paper is to clarify the differing roles of zakat and waqf in poverty alleviation, hunger, and inequality. It aims to provide a blueprint for harnessing zakat and waqf as alternatives to remedy these social ills. The paper is a qualitative research project, performed through analysis of literature regarding current confusion points pertaining to the areas of infaq, sadaqah, zakat, cash waqf, corporate waqf, and traditional waqf. An ideal social safety net is attainable by focusing on poverty, giving special attention to economic empowerment programs. Zakat should play a supporting role in abating hunger for people in the transition while counterbalancing inequalities created by market imperfections. Since zakat funds cannot be used for social infrastructure development, traditional waqf should fulfil these needs among vulnerable people. Additionally, contemporary forms of cash waqf and corporate waqf are essential in mobilizing resources for social infrastructure development. In contrast to existing literature, this paper provides an alternative blueprint for Islamic social investment and transfer, clearly delineating the roles of infaq, sadaqah, zakat, and waqf. Different Islamic social investment and transfer tools should function like prongs, each acting in a separate sphere, working to serve the same ultimate purpose. ÖzBu çalışmanın amacı, yoksullukla mücadele, açlık ve eşitsizlik konularında Zekat ve Vakıf kurumlarının üstlendiği farklı rolleri değerlendirmektir. Bu çalışma ile Zekat ve Vakfın söz konusu sosyal yaraları sarmak maksadı ile alternatif olarak kullanıldığı bir plan sunulması amaçlanmıştır. Makale; İnfak, Sadaka, Zekat, Para Vakfı, Kurumsal Vakıf ve Geleneksel Vakıf alanlarına ilişkin mevcut literatürde bulunan çelişkili noktaları da açıklığa kavuşturan nitel bir araştırma projesidir. İdeal bir sosyal güvenlik ağına; yoksulluğa odaklanılarak ve ekonomik olanak sağlama programlarına özel önem gösterilerek ulaşılabilir. Zekat, piyasa mükemmeliyetsizliklerinin yarattığı eşitsizlikleri dengelerken geçiş sürecindeki insanların açlık sorununu hafifletmede destekleyici bir rol oynamalıdır. Zekat fonları İslami açıdan sosyal altyapı projeleri için kullanılamadığından, geleneksel vakıf, ekonomik olarak savunmasız insanlar için sosyal altyapı ihtiyaçlarının karşılanmasında kullanılmalıdır. Buna ek olarak, çağdaş Para Vakfı ve Kurumsal Vakıf formları sosyal altyapı projeleri için kaynak mobilizasyonu için ehemmiyet arz etmektedir. Mevcut literatürden farklı olarak, bu makale İslami sosyal yatırım ve sosyal transfer için alternatif bir taslak sunmakta olup infak, sadaka, zekat ve vakf'ın bu bağlamdaki farklı rollerini açıkça ortaya koymaktadır. Farklı İslami sosyal yatırım ve sosyal transfer araçları, her biri ayrı bir alanda hareket eden ve aynı nihai amaca hizmet eden çatal dişleri gibi işlev görmelidir.
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