Riba and the Sustainable Development Goals (SDGs): A Comparative Review in the Light of Islamic Economic Principles

Abstract

This paper critically examines the interrelationship between the global economic impact of interest (Riba) and the United Nations Sustainable Development Goals (SDGs). While the modern financial system considers interest as a means of development, Islam considers it a cause of social injustice, poverty and wealth concentration. The paper highlights how an interest-free Islamic financial system is deeply aligned with the SDGs, particularly poverty eradication, economic equality and sustainable development. The objectives of this research include critically analyzing the negative economic, social and environmental impacts of the interest-based financial system, and analyzing alternative Islamic financial models based on Musharakah, Mudaraba, Zakat and non-exploitation, which can achieve the SDGs in an ethical and effective manner. It conducts a comparative study of Western and Islamic frameworks to identify effective policy points for social justice and long-term economic sustainability, and includes an analysis of the role of global Islamic financial institutions (IFIs). The research adopted a qualitative research methodology and comparative analytical study, reviewing Islamic sources (Quran, Sunnah) and UN reports. The main findings are that the usury system promotes poverty and inequality, while Islamic models such as Musharakah, Mudaraba, Zakat, and Waqf provide effective alternatives for achieving the SDGs. The paper makes recommendations for policymakers to formulate development models on ethical grounds.

Keywords: Sustainable Development Goals (SDGS), Social Injustice, Economic Impact of Interest, Poverty Eradication, Economic Equality, Sustainable Economic Growth