Philanthropy, markets, and Islamic financial institutions: a new paradigm

This article introduces a theoretical framework positioning Islamic financial institutions as agents of philanthropic finance. Rawashdeh et al. argue that Islamic philanthropy—via zakat, waqf, and microfinance—can generate sustainable, ethical development. They propose integrating these tools into formal financial systems to leverage their potential for broader social impact. The authors highlight the unique mechanisms within Islamic finance that inherently promote charitable giving and wealth redistribution, suggesting a novel approach to development finance. This paradigm emphasizes ethical considerations and social equity as central to financial practices, offering a distinct model for philanthropic engagement.