From Charity to Change: How Islamic Social Finance is Powering the Sustainable Development Goals

This article examines how Islamic social finance, including zakat, wakaf, and sadaqah, can shift from ad hoc charity to structured development finance aligned with the SDGs. Synthesizing evidence on Maqasid al Shariah alignment, we identify barriers that keep faith-based funds outside national plans: fragmented governance, weak data, and limited impact measurement. We highlight solutions, including unified reporting, the UNDP and IsDB indicator framework, and fintech for transparent collection and disbursement. Country examples such as Indonesia’s Wakaf Linked Sukuk and Malaysia’s Sadaqah House show models. We propose a roadmap linking policy reform, digital infrastructure, and partnerships to deliver measurable, inclusive outcomes.