Role of Islamic wealth in sustainable development

Islamic wealth management (IWM) characteristically aligns with the central principles of sustainability and social responsibility, making it a major potential contributor to global sustainable development goals (Busari et al., 2024). Hence, this chapter focuses on how Islamic wealth management could be gainfully explored to address contemporary social and environmental challenges, particularly through its principles of investments in ethical, green, and impact-focused initiatives. It highlights how its social financial instruments and institutions, including waqf, zakat, qard hasan and sustainable sukuk, could be deployed as veritable mechanisms to mobilise resources not only for poverty alleviation programmes but also renewable energy and community development projects. Furthermore, the chapter addresses the growing concerns of Environmental, Social, and Governance (ESG) criteria in Shari’a�compliant investments which is one of the key components of Islamic wealth management and financial planning. This chapter also provides insightful practical recommendations on how to position Islamic wealth management as a holistic and universal socio-financial ecosystem that could be used as a transformative tool to achieve global sustainable development goals.