Fostering Refugee Empowerment via Innovative Islamic Social Finance Framework

<p dir="ltr">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.</p><p dir="ltr">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.</p><p dir="ltr">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.</p>