Fostering Refugee Empowerment via Innovative Islamic Social Finance Framework

Abstract

The world is experiencing a record number of displaced people fleeing conflict and persecution. Traditional aid models are struggling to keep up, leading to a shift towards empowering refugees for long-term integration. This recognizes refugees' potential to contribute to their own well-being and their host communities. The vast number of refugees, with 75\% residing in already struggling countries, places a heavy burden on humanitarian organizations, highlighting the need for more sustainable solutions. This study explores the means for empowering refugees through innovative Islamic social finance models. It aims to design a comprehensive ecosystem that addresses human capital, financial capital, and market development tailored to refugees' economic and social needs. The focus is on adopting Shari’ah-compliant tools that respond to their unique circumstances, fostering sustainable development for both refugees and host communities. The research uses a qualitative approach to build an ecosystem that transcends financial needs. Considering the broader socio-economic context contributes to the well-being of all parties involved. The findings hold significant implications for policymakers, industry players, and academics. Policymakers can leverage the research to develop frameworks that address refugee financial needs and promote long-term well-being. Industry players in the financial sector can gain insights into implementing Shari’ah-compliant platforms for refugees, fostering economic resilience and self-sufficiency. Academics will find a valuable contribution to the knowledge base on microfinance, Islamic finance, sustainability, and refugee studies, inspiring further research and interdisciplinary collaboration on complex socio-economic issues.

Date of Award	2024
Original language	American English
Awarding Institution	HBKU College of Islamic Studies