The Role of Islamic Social Finance on Promoting Inclusive Recovery Amid Crises: A Systematic Literature Review

Abstract

This research investigates how Islamic Social Finance (ISF) helps encourage inclusive recovery in different types of crises such as health, financial and economic, political, social, climate, educational, aging population, hunger, and confidence crises. Employing the PRISMA method for systematic literature review (SLR), this study investigates how ISF tools like zakat, infaq, sadaqah, waqf, and Qardul Hasan contribute to reducing socio-economic disparities and building resilience. A grand total of 57 articles were carefully chosen from the Scopus and Web of Science (WoS) databases through a systematic process that included identification, screening, eligibility, and quality appraisal stages. The results show that ISF has made important contributions by decreasing poverty, assisting vulnerable groups, improving healthcare systems, empowering small businesses, and funding essential social initiatives in times of crisis. Additionally, this research accentuates the distinctive historical application of zakat money for funding jihad battles and redeeming captives of war, revealing ISF's capability to tackle various obstacles throughout history. These results highlight the crucial importance of ISF in upholding societal stability and facilitating economic recovery in times of crisis. This study enhances our comprehension of the effective use of ISF in aiding communities during emergencies, providing valuable knowledge for policymakers and Islamic practitioners.