Social Impact of Islamic Finance: The Paradox of Growth vs. Impact

View Sample PDF

Author(s): Mohammad Rezoanul Hoque (University of New Orleans, USA)and Kabir Hassan (University of New Orleans, USA)
Copyright: 2026
Pages: 48
Source title: Social Impact, Ethics, and Practice in Abrahamic Finance
Source Author(s)/Editor(s): Camille Silla Paldi (Colgate University, USA), Phillip Lieberman (United States Naval Academy, USA & Vanderbilt University, USA), Mohammad Kabir Hassan (University of New Orleans, USA)and Isaac Lifshitz (Shalem College, Israel)
DOI: 10.4018/979-8-3373-6706-4.ch007

Keywords: Accounting and Finance / Business Science Reference / Religious Studies / Social Sciences & Humanities

Purchase

View on the publisher's website for pricing and purchasing information.

Abstract

By 2022, the global Islamic financial services industry (IFSI) was estimated at USD 3.25 trillion in assets up from about USD 200 billion in 2003. Despite this impressive financial growth, the social outcomes envisioned by Islamic economic principles poverty alleviation, equitable access, and social justice remain largely unfulfilled. This paper examines the paradox of robust market expansion alongside limited social impact in Islamic finance. We analyze key success metrics such as asset growth, market penetration, financial inclusion, and product diversification, and we compare these with critical social indicators including poverty rates, gender gaps, and the nature of financing instruments. Using case studies from Sudan, Pakistan, Saudi Arabia (and the GCC), and Iran, we illustrate the disconnect between financial performance and social development. Finally, the paper offers policy recommendations designed to realign Islamic finance with its ethical and social objectives.

The IRMA Community

Research IRM

Social Impact of Islamic Finance: The Paradox of Growth vs. Impact

Purchase

Abstract

Related Content

IRMA Sponsors