Policy Coherence for Using Islamic Social Finance Instruments in the International Humanitarian Aid and Fill Sdgs Gaps Regarding Refugees

The study aims to show how Islamic Social Finance (ISF) instruments could contribute to achieving SDGs and fill the gaps in pressing humanitarian crises such as refugee protection. ISF institutions enjoy sufficient financial capacity to bridge the gaps and realize the most relevant and urgent SDGs. However, due to policy and other constraints, their participation in the international development aid programs is limited. Accordingly, this study explores the existing policy divide between the Western and Islamic countries regarding using Faith-Based funds in international humanitarian and development aid programs. Through case studies, the study demonstrated that ISF instruments have the potential at national and international levels to mobilize resources to support the marginalized groups in society in various countries. The analysis indicated the need to develop a framework that helps to build cooperation among local and international actors to mobilize ISF funds for cross-country development and humanitarian aid, which accelerates the achievement of the SDGs. The paper studied the ongoing dialogues among various stakeholders to create a policy convergence and use ISF instruments towards SDGs. The study suggests that the dialogue should be more inclusive and include all potential stakeholders, including Muslim leaders, policymakers, and Shariah Scholars, to narrow policy gaps and draw policy coherence for using ISF tools in the duality aid programs and creating synergies towards achieving the SDGs.