THE SOCIO-ETHICAL SIGNIFICANCE OF ISLAMIC FINANCE IN DEVELOPING YOUTH ECONOMIC CULTURE
Keywords:
Islamic finance, Sharia compliance, riba prohibition, risk-sharing, mudarabah, musharakah, murabaha, social justice, ethical economics, sustainable development.Abstract
This article examines the distinctive features of Islamic finance as an ethical and socio-economic system grounded in Sharia principles. It highlights the prohibition of interest (riba) and the emphasis on risk-sharing, real economic activity, and social responsibility. The study analyzes key financial instruments such as mudarabah, musharakah, and murabaha, demonstrating their role in promoting fairness, transparency, and partnership. It also explores additional mechanisms including zakat, sadaqah, and qard al-hasan, which contribute to wealth redistribution and poverty reduction. The paper argues that Islamic finance integrates moral values with economic practices, ensuring that profit generation aligns with ethical standards. Furthermore, it discusses the growing global relevance of Islamic finance, particularly in the context of financial instability and inequality. The research shows that its asset-based and non-speculative nature enhances financial stability and resilience. Overall, the article concludes that Islamic finance represents not only an alternative financial model but also a comprehensive framework for sustainable and socially responsible economic development.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
