



































Type of the Paper (Article


American Interdisciplinary Journal of Business 

and Economics 
ISSN: 2837-1909| Impact Factor : 4.6 

Volume. 9, Number 4; October-December, 2022; 

Published By: Scientific and Academic Development Institute (SADI) 

8933 Willis Ave Los Angeles, California 

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EXAMINING THE ROLE OF ISLAMIC ECONOMICS IN ACHIEVING 

SUSTAINABLE DEVELOPMENT GOALS 
 

 

Gülistan Eryolu and Arif Özaydın
1,2Gaziantep University. 

Abstract: Islamic economics is a discipline that studies economics from an Islamic point of view, 

incorporating its own norms and values that dictate individual and social economic attitudes. It cannot be 

considered independently of other fields, such as law, politics, history, and sociology, and most importantly, 

the moral structure. The goal of economic development is to improve the welfare level and provide an 

environment of trust. However, the level of economic success has been unilaterally associated only with 

material factors, ignoring moral and ethical values. In this study, we explore the basic conceptual framework 

and scope of Islamic economics and emphasize the importance of an understanding of economic growth and 

development that encompasses all world markets. By considering the concepts of innovative, entrepreneurial, 

justice, and morality in a holistic way, a change can be achieved. The article provides a historical account of 

the emergence and development of Islamic economics, and the deep relationship between economics and 

Islam. The article argues that the capitalist system is dominant and moral values are ignored, and therefore, 

studies on the relationship between religion, culture, and economy, especially in the axis of economics, are 

prioritized and increased in recent years. 

Keywords: Economics, Islamic Economics, Development, Moral Values, Ethics. especially within the 

framework of economics, have been given priority and increased in recent. 

 

 

Introduction  

The first expectation for societies is to improve the welfare level and to provide an environment of trust. The 

realization of expectations is significantly related to economic development. Therefore, economic 

development for societies has been the primary goal from past to present. (Karagul and Açıkgöz, 2009)   
Economic development; all social-political structure, production level, education level, human rights and 
democratization level of individuals living in a society include health and humane living levels. Although 
economic development is among the most discussed economic concepts, it cannot be said that there is a 
hypothesis that can be applied in practice to solve the development problem. The reason is that although 
economics, as a social discipline, has an important place in the literature of economics, this feature has been 
ignored when it comes to solving economic problems. Namely, although production and consumption have a 
place completely in the science of economics, it is not possible to analyze the human being, who is the leading 
role of both production and consumption, with all their characteristics. Because the states and actions of 
individuals are related and different from their value judgments, sadness, anger, beliefs, expectations and sense 
of trust. It is constantly variable. There is no objectivity. For this reason, it has been thought that it should be 
reconsidered in economics, where the capitalist system is dominant and moral values are ignored, and it seems 
that the studies on the relationship between religion, culture and economy,  
years. (Karagul and Açıkgöz, 2009)  



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Ensuring and maintaining economic growth and development are among the main objectives of developed 
and developing countries. (Karakaya, 2020). The development of a country does not depend on only one 
factor. Well-trained human factor, which is human capital, is the pioneer of development. Then, the 
geographical factor, race, religion, idea, economic, historical, social and cultural factors are the factors that 
affect development as a whole.  
Islamic economics is trying to create an economic system that we can call Islamic within the world economic 
system. In Islamic economics, we can say that the ideas that will serve the economic system that will be 
embodied in practice rather than theory for all humanity and will benefit the society, in a sense, are Islamic 
Economics. (Trust, 1995)  
If the factors that prioritize development in Islam, there are many methods for the advancement of humanity. 
Islam is a dynamic religion, aiming at the happiness of humanity by advancing it in the material and spiritual 
environment. Along with being dynamic, it took a stance against laziness and standing still. The religion of 
Islam, in order to be humane, is in harm, whose two days are equal, its hadith should be a principle for us. 
(Kayadibi, 2012)  
One of the important issues of revealing the leading roles of Islamic economic studies in development is to 
organize the structures of the societies in which these studies are carried out, albeit slowly, in an Islamic form. 
Because it is not an issue that can be overcome only by theory.  
One of the common points in Islamic economic studies is the rejection of homoeconomicus. Individuals should 
be living beings who know that they are no longer economic people with a western mentality, not only pursuing 
their own interests, but also altruistic and able to think of themselves with others, and intellectually knowing 
that such a behavior is more correct, as long as they are right.  
The individual within the concept of Homo Islamus, which Zaim dealt with in 1995, is a responsible, 
benevolent, collaborative, just and moral being while living his life within the framework of the truths and 
wrongs commanded by Allah. If we give an example through this concept, just as the whole body is affected 
when a damage occurs to a person's body, the existence of people in need in a society will also affect the rest. 
In order to eliminate these destructive effects, we as a society must help the needy so that the individual and 
later the society can develop in peace and prosperity. To explain with a hadith, the hadith "Muslims, in loving 
each other, showing mercy and compassion to each other, is like a body that shares this pain with sleeplessness 
and high fever when one of its organs is sick." (Muslim, Birr, 66) is completed with the hadith.  
For the solution of the development of the Islamic economic system, “Let them do it. Starting from the 
principle of "Let them pass" and saying that everyone should take care of themselves is an incomplete and 
wrong approach. Both the individuals they reach and the state are obliged to help people below a certain 
average life level through various methods and to raise their life level above the average.  
This study is limited to the problem of how Islamic economics can provide development in this market, rather 
than revealing the Islamic economic system. In the study, priority was given to subjects such as the individual, 
reason, morality, education, science, human rights, and social solidarity. These items are very important issues 
for the development and development of humanity. The methodology of Islamic economics and its reflections 
in Islamic economics in terms of development and growth are examined by adding verses and hadiths.  

Economic activities, which are the environment where many material needs of human beings  

are met, are indispensable for societies. Adam Smith's famous “Homo Economicus” concept is a model of an 
individual who only thinks about his own interests and takes self-interested and rational decisions on the 
economic ground. However, there are moral concerns and restrictions for the individual who only considers 
his own interests in economic activities. The basic expectation of man is to gradually increase the current level 
of welfare and to create an environment of trust. The implementation of these goals is highly related to 
economic development. For economies, economic development has been an economic goal from past to 
present. For this reason, what economic development theoretically means, and which factors affect economic 
development positively or negatively have always been among the topics discussed. While there is production 
and consumption in the economics literature, there are differences as a result of the behavior of the individual 
who forms the basis of production and consumption. Because individuals' behaviors, beliefs, expectations, 
sadness, joy and trust depend on their level and these items vary. For this reason, it is foreseen that the science 
of economics, which is known as a completely capitalist and immoral theory, needs to be reconsidered, and 



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therefore, it is seen that the studies of Islam and economics have increased rapidly in the axis of economic 
theory.  
Firstly, the birth of economics will be mentioned and then how and when Islamic Economics was formed will 
be mentioned. Economics continues to dominate today despite the dominant economic thought, the 1929 
Economic Depression, the 1970 oil crisis and the most recent 2008 global financial crisis. Despite the 
economic growth in the world and the increase in real national income per capita, the injustice and crime rates 
in income distribution do not decrease, and the happiness of people does not increase. Societies and economies 
need a new economic understanding. In order for Islamic Economics to respond to the society, it needs to 
create its own school.  
In the study, what is the science of Islamic economics and its place in the management of economic 
development, and what is the relationship of development in Islamic economics? The answer to the question 
has been sought. In order to understand the state and movements of the events in the market and to guide the 
economy correctly, it is aimed to examine how and in what direction the rules that shape social life move. 
Subjects such as human, rationality, morality, reason are mentioned. These concepts are remarkable aspects 
of the development and development of humanity.  

2. Islamic Economics  

Economics and Islam are always closely lived reality. Therefore, the logical framework imposes on us the 
need for a collaborative study of concepts.  
Islamic economics is defined as a system of values that leads the economic behavior of individuals in an 
Islamic society, as a prediction that Islamic propositions are in force in social, political and legal circles. 
Islamic economics, a branch of economics, means the investigation of one of the economic systems. This 
branch of economics deals with the Islamic economic model, propositions and principles and thus examines 
their impact on economic measures. (Ersoy, 2015)  
The existence of Islamic Economics coincides with the 20th century. The political changes experienced by 
Islamic states after the Second World War resulted in the independence of many Islamic countries. As a result, 
it enabled the rise of Islamic gains again and was effective in economics. Since every direction of the Western 
economy does not meet the criteria of Islam, efforts to turn to Islam in this area have started. The term 'Islamic 
Economics' was put forward by countries such as India and Pakistan, and the functioning of mainstream 
economics was tried to be adapted to Islam. Islamic economics can be studied and researched as a branch of 
knowledge determined by Islamic beliefs, science and culture, history and Islamic law. In addition to these 
factors, it is seen that he contributed to the works of history and politics as well as the works of Islamic law. 
Moreover, they are the product of the experiences of Islamic societies. (Tabakoglu, 2010)  
The turning point of Islamic economics and the interest of the Muslim community in the world began with the 
1st International Conference on Islamic Economics held in Saudi Arabia under the leadership of Melik Faisal. 
The 2nd was held in Pakistan (1983) and the 3rd in Malaysia (1992). Conferences caused the field to be heard 
and known to exist.  
The emergence times of Islamic economics approaches are different. While the first of these doctrines reached 
the early Islamic economists, the later came into existence with the advancement of this branch of science.  
The first doctrine treats Islamic economics as an aggregator of commandments and principles for all concerned 
with economics in the sources of Islamic law. Therefore, this approach requires both individual and social life 
under the leadership of the Qur'an and Sunnah. The second doctrine argues that Islamic economics is a possible 
means of attaining and attaining economic goals in Islam. Therefore, Islamic economics is the management 
of the economic life of the society in the way of achieving the goals of Islam, rather than the precise application 
of certain principles in the Shari'a.The third doctrine determines the duty of the Muslim in the economic life. 
Individual movements in Islamic economics; the differences in perception in the nature of the individual are 
different due to the goals of the individual. The different perceptions of the economic individual lead to 
different thought frames and their analysis. While the individual in the capitalist order can turn to interest and 
maximize his profit, the economic individual in Islamic economics, on the contrary, reflects the behavioral 
dimension of benevolence and brotherhood to the individual.  
As a result, there is a deep relationship between economics and Islam. Islamic economics seeks answers not 
only to the "how" question, but also to the "why" question. The question of “why” is related to the ethical 



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dimension of the event and compliance with ethical values is indispensable in Islamic economics. Islamic 
economics, taking its main source from Islam, tries to find solutions to the economic problems of the period.  

3. Economic Development  

Economic development is defined as the transformation of a society's mode of production to produce high 
value-added products, a fair distribution of income and raising living standards. In the light of this definition, 
the objectives of development are listed below:  
• Human dimension; to increase living standards,  
• Production and technology dimension; to start the production of higher value-added products,  
• Environmental dimension; to cause minimal damage to the environment,  
• Dominance dimension; to be ahead in the race with societies,  
• Employment dimension; increasing employment opportunities and improving working conditions,  
• Freedom dimension; to increase the level of freedom in terms of economic, political, social and 
international relations, 
Unlike economic growth, economic development must include the following five elements:  
• Improvement of humanitarian conditions,  
• Sustainable growth,  
• Modernization in social, political and institutional fields,  
• Structural change in production,  
• Technological progress.  

  

The development process needs both economic growth and social changes. The share of economic 
development is great for the underdeveloped countries to be able to scale up to the standards. Because in 
underdeveloped countries, the social structure should be corrected before the growth data. In underdeveloped 
countries, there is an employment problem, this causes the main problems that directly concern the society, 
such as education and health, and cannot advance the social structure with incorrect policy practices.  
The development process also includes developing appropriate policies in terms of the aforementioned 
negativities. Because development, together with the improvement of economic indicators, leads to a relief 
that spreads to all segments of the society. In order for economic development to be implemented in the most 
effective way, certain reforms should be realized, and regulations should be expanded and encouraged in the 
industry, service and agriculture sectors.  
Development does not mean an increase in absolute production and per capita income, but an improvement in 
economic, social and cultural order in an underdeveloped economy. Among the main elements of development 
are the increase in per capita income, the change in the productivity and quantities of production factors, the 
increase of the share of industry in national income and exports, etc. fundamental reforms.  
When the concepts of growth and development are compared, growth is “the expansion in the productive 
capacity of an economy that can be measured quantitatively” (Freyssinet, 1985). The concept of economic 
development indicates qualitative change. Qualitative change refers to both more efficiency and changes in 
technical and institutional infrastructure. When the concepts of growth and development are compared, 
economic growth; it can be said that it refers to the increase process at the same level, while economic 
development refers to the adventure of structural change in which the one that is different from all of them 
takes place. (Karataş and Çankaya, 2010).  

4. Relationship between Islamic Economics and Development  

As a concept, economic development is always kept hot on the agenda, and discussions remain hot on what 
economic development means, which factors affect economic development, and how they trigger it in a 
positive or negative way. From an economic point of view, one of the foremost problems of Turkey and other 
developing countries is development. So, what is development in Islamic economics? First of all, the most 
dynamic element of development is people. Starting from human beings, the elements necessary for the 
development of especially developing countries are realized by the fact that they can save and use their savings 
in the most effective way. Capital accumulation leading to economic development can only be realized by 
transforming the increased savings into investments. In the realization of economic development, in addition 



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to increasing the savings, which is the most basic indicator of development in our country, it is necessary to 
transform the increased savings into the most effective investment areas and to be encouraging in all respects. 
(Aras, 2000).  
In economic development, it is aimed to transform the production structure in a country's economy into a way 
to produce high value-added products and to increase the level of welfare by distributing this product fairly 
among the income groups in the market. The main purpose of economic development is to make individuals 
free in all aspects in the context of economic, political, social and international relations. (Source, 2011).  
In the development dimension of Islamic economics, it is seen as an obligation to re-investigate the way or 
model that will develop the society. The main goal of this study is to investigate Islamic development.  
The shape of a country's economic policy is determined by the existing economic-social system and its 
framework and economic growth process. They reveal what kind of person and society type is desired. Our 
world either does not know or ignores the approaches of Islam about the concept of economic development 
formed in the capitalist system and its connections. What are Islam's thoughts on economic development? An 
answer to this question is sought. In line with today's modern economy, Islam has a stable, harmonious, 
civilized economic development model and economic policies with humane values. In the concept of Homo 
Islamus, which has these features, the feature that distinguishes it from other human types is that its only 
purpose in life is not material pleasure. For Homo Islamus, the loftiest goal is not to be rich financially. He is 
a virtuous, benevolent, benevolent type of person. (Hamitogullari, 1984). The Islamic development model 
takes from all the material and spiritual dimensions of the human being. These features are explained in the 
light of verses and hadiths with the concepts of "falah" and "favz" mentioned in the Qur'an as the purpose of 
development in Islam. (Umer, 2008)  
“Whoever does good deeds, whether male or female, as a believer, we will make him live a good life. And we 
will certainly reward them with the best of what they do.” (An-Nahl 16/97). The verse is taken as the most 
general goal of development in Islam.  
The dynamic power created by the spiritual pleasure of obeying divine orders should not be thrown into the 
background. It is to raise the interest of the society above the interest of the individual (Islam aims at social 
benefits, not narrow and individualistic benefits). The thought of Islam is the most important force that directs 
the human being. It turns the economy into an environment that protects it from waste. Islam commands a 
business sharing that opens up to cooperation.  
For a Muslim, life is a means of pleasing Allah and attaining happiness in both worlds. It has features that will 
lead to sharing in all times of life. Islamic economics is a cooperative feature. It is an economy with a social 
morality. The task of Homo Islamiccus emerges in the economy to think not only of himself but also of society. 
It brings a minimum livelihood rule to every member of the society.  

Development is the effort required to achieve a better level in both material and spiritual as- 

pects. “Allah (swt) does not change what is in a society until they change their characteristics.” (er- Ra'd 13/11) 
As stated in the verse, it is necessary to make the necessary material and spiritual effort. Also, St. the Prophet 
(saas) sought refuge in Allah from laziness and weakness in his prayers. “O Allah, I seek refuge in you from 
distress, sadness, helplessness, laziness, stinginess, debt and the pressure of people.” ( Tirmidhi , " Daavât " , 
71; Bukhari , " Jihad ", 25; Muslim, "Dhikr", 17). In this hadith, it is prayed by using the features of 
backwardness.  
The strong relationship between economic development and Islam is seen in the realization of the socio-
economic justice and welfare (falah) of all individuals. The development of countries will be possible with the 
conditions suggested by Islam.  

5. Results  

Economic development is positively associated with the efficient use of a society's tangible and intangible 
value. But so far, the level of economic success has been unilaterally associated only with material factors. 
The fact that those who are rich in natural resources are poor and those who are deprived of natural resources 
are economically developed make us think about these presented theories. Therefore, economic development 
is intangible; its relationship with religious belief principles was examined in the study.  



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Undoubtedly, it is useful to consider that the foresight and political propositions to be made for economics, 
which is a social science, are not the only variable that explains the change or break in this thought system 
and the changes in the economy of societies.  
It is the dominant school of economics that started with Adam Smith and developed itself in the axis of 
different names for the formation of the Islamic Economic School. It is necessary to reduce its dominance in 
economics education, economic literature and economic decision-making mechanisms, and the studies on the 
new alternative Islamic economics should be taken into consideration.  
The understanding of development in Islam is based on increasing the level of human welfare. However, the 
concept of welfare here is the attainment of happiness not only in life in this world, but also in the hereafter. 
Prosperity in the world is not only the high level of income, but also showing a multidimensional level of 
development from education to health, from social solidarity to good governance. (Calgan, 2019).  
While forming the theory of Islamic economics, our main sources are the Qur'an and the Sunnah. It is seen 
that concepts such as halal production, income and consumption, moral values, fair sharing, cooperation and 
spending are included in the Qur'an and Sunnah. The new generation of Islamic economists should create 
concrete theories of Islamic economics in the light of verses, hadiths and Islamic law, in addition to the 
knowledge that has existed as a result of the studies that have come to the present day. A change can only be 
achieved by considering the concepts of innovative, entrepreneurial, justice and moral values holistically in 
achieving the ultimate goals of an understanding of economic growth and development that covers all of the 
world markets.  

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