THE INTERSECTION OF ISLAMIC SOCIAL FINANCE AND HUMANITARIAN AID: A LITERATURE REVIEW ON SHARIA-BASED BUSINESS SOLUTIONS FOR VULNERABLE POPULATIONS

Abstract

This literature review explores the intersection of Islamic social finance and humanitarian aid, focusing on sharia-based business solutions aimed at supporting vulnerable populations. Islamic social finance, with instruments such as zakat, waqf, and sadaqah, offers a unique framework for sustainable development in crisis-affected areas. The study examines how these financial tools can be effectively integrated within humanitarian initiatives to address poverty, social inequity, and financial exclusion. By analyzing existing literature, this review highlights successful case studies where sharia-compliant financial practices have positively impacted vulnerable communities. Additionally, it identifies critical gaps in the implementation of sharia-based solutions, including regulatory and operational challenges. This review underscores the potential of Islamic social finance in providing innovative and sustainable responses to humanitarian crises. The findings also suggest practical recommendations for scaling sharia-based financial solutions in humanitarian frameworks. This study aims to contribute to the discourse on aligning Islamic finance with global humanitarian goals, offering a pathway to inclusive, sharia-compliant aid practices.