The Impact of Islamic Social Finance on Sustainable Development Goals to Alleviate Poverty in Muslim Countries: A New Paradigm for Zakat Organizations in Bangladesh

Abstract

This research focuses on the issue of effect of Islamic social finance in the Muslim countries and especial reference to Bangladesh to alleviate poverty through managing zakat and other forms of social finance in Islam such as, waqf and sadaqah. Islamic social finance in Muslim countries including zakat, was estimated at almost $2tn in 2015 and is expected to exceed $3tn by 2020. Existing zakat management system in Muslim countries is not developed up to the level with the advance technology and innovation to rescue the Muslim nations from poverty. Therefore, this research is planning to recommend a new framework that evaluates the success factors of zakat management and distribution system by using FinTech to establish a clear and trusted system that will help zakat collection and provide transparent distribution channels to alleviate poverty in Bangladesh and establishing social protection system and in achieving SDGs of Bangladesh including Muslim countries.The inductive method was applied to examine data from secondary sources for this qualitative study which focused on how Bangladesh and the Muslim countries could make remarkable progress in the future to develop an Islamic social protection system and FinTech for zakat management system to achieve SDGs with especial focuses to Bangladesh.