The role of Islamic finance in achieving sustainable development / Analytical study in Iraqi Islamic banks

Abstract

Finance is an essential economic activity in developing countries and improving their competitiveness. Which seeks to attract financial resources from a variety of sources to ensure the success of economic development and achieve prosperity for society and future generations in what is known as sustainable development. Islamic finance represents one of the main sources of financing economic projects within the framework of compatibility with the principles of Islamic Sharia, and an alternative financial model to traditional financing by focusing on serving people and society and developing the economy. The research aims to assess the role of Islamic finance in Iraq for economic projects in general, which are related to sustainable development projects in particular, as they are compatible with the objectives of Islamic finance in developing society and improving its living conditions. To achieve the objectives of the research, a sample of Islamic banks in Iraq was selected as they preside over Islamic finance activity in Iraq. Because of the control of traditional finance, especially by government banks, on the financing activity in Iraq, and the desire of Islamic banks to avoid the risks associated with financing, especially long-term financing, and to focus on specific types of financing, which are characterized by their short terms and relatively guaranteed profits, in addition to the absence of many common Islamic financing methods such as Islamic Sukuk and speculation, which requires motivating Islamic banks to shift towards long-term financing models that are based on participation, through which they can contribute to a greater extent in financing sustainable development projects that are characterized by their long terms.