The Contribution of Islamic Social Finance to Economic Recovery and SDGs: Saudi Vision 2030 Analysis, Malaysia's Experience Assessment, and Lessons for Algeria

Abstract

The study examines the role of Islamic Social Finance (ISF) in achieving economic recovery in line with the SDGs, particularly in the aftermath of the COVID-19 pandemic. Based on an analytical approach, the Saudi Vision 2030 and the Malaysian experience with ISF were analyzed as useful lessons for the Algerian economy. The results indicated the success of the Saudi Vision 2030 experience utilizing ISF resources to create over 113 thousand Waqf institutions as non-profit infrastructure organizations (SDG9), contributing to 5% of GDP by 2030 (SDG8), and creating 29 investment funds during 2023, with total Awqaf assets of SAR 637 billion distributed for philanthropic purposes in accordance with the 2030 Vision and the SDGs, including Sustainable Cities (SDG11), creating 737 Awqaf products (SDG12), and providing excellent education (SDG4). Similarly, The Malaysian experience proved successful in distributing ISF elements such as Zakat, Sadaqah, and Waqf, and cooperation like Qard Hassan and Takaful, effectively helping customers, producers, and governments during the COVID-19 crisis. The study recommends leveraging the Saudi and Malaysian experiences to revive the Algerian economy through mobilizing ISF resources, such as Zakat, Waqf, and Social Investments through Sukuk and Crowdfunding. These elements would play significant roles in increasing economic activity and diversifying the economy.