A Glance Into The Future

Islamic Social finance is a well-established concept that has always played a significant socioeconomic role throughout history. It has served as a philanthropic tool and made vast contributions in the development of Islamic civilisation and continues to prove its vast ability, rivalling conventional banking, as an effective financial tool which offers support that meets the needs of the poor. Economic justice, shared prosperity and inclusive participation are the key principles that underline Islamic social finance. When properly developed, managed, and utilised, it can be harnessed as a highly effective platform that creates sustainable and perpetual benefits to society.

With constant disruptions taking place in the fintech space and with the introduction of new technologies such as blockchain, it brings renewed hope for the revival of Islamic social finance, in terms of moving away from traditional methods to a more inclusive and diversified approach which will benefit future generations. It is time that formal Islamic social finance goes back to its core ideals, extending its impact over the entire landscape of economic development. The global drive towards an equitable existence is acting as catalyst for the resurgence of Islamic social finance. Finterra leads the way in contributing a unified approach to global equality and to achieve a ‘better world’.

Types of Islamic Social Finance

Sadaqah
Sadaqah
Voluntary act of charity, fisabillilah (for the cause of Allah s.w.t.) that is given to the poor and needy in the community
Waqf
Waqf
A voluntary and irrevocable dedication of one’s wealth – in cash or kind, and its disbursement for Shari’ah compliant projects
Zakat
Zakat
Mandatory alms given by all Muslims that is directed to the specific beneficiaries who are in need
Microfinancing
Microfinancing
Offering financial assistance through tools such as Qard al’Hassan (no-interest loan) to people excluded from the banking system.
Microtakaful
Microtakaful
Aimed to offer protection to the poor through large risk pool of contributors (takaful policy holders) against specific risks and is a mean focused on offering the poor access to finance.
SRI Sukuk
SRI Sukuk
Islamic bonds issued with aim to fund SRI projects (such as green, social or sustainable projects) through its proceeds.
Cash Waqf
Waqf Project
Cash Waqf
Waqf Project

Impact of Islamic Social Finance

Tackle Global Poverty
Tackle Global Poverty
Charitable donations through Sadaqah, Waqf & Zakat leads to the betterment of the marginalized and poor through sustainable infrastructure and institutions
Economic Justice
Economic Justice
ISF reduces the hoarding of wealth, a harmonized redistribution of wealth within the community leading to not only financial but social justice as well.
Inclusive Participation
Inclusive Participation
ISF offers tools to address the issue of financial inclusion through tools such as microfinancing that leads to financial inclusion for a prosperous community.
Shared Prosperity
Shared Prosperity
Instilling the values of brotherhood & mutual respect, ISF institutions offers aid to those in need and to share one another’s prosperity as well, assuring a socially mature & sustainable community.