The purpose of this study was to investigate the impact of Islamic banking practices on the social development in Mogadishu, Somalia and the impact Islamic banking on serving the poor unbanked population and to investigate their roles in reduction of poverty and create jobs in Somalia. The methodology of this study was conducted quantitative research design. The population of this study was contained Islamic banks staff, Institutions and academics. The sample size of the study was 100 participants from (27 Islamic banks staff, 31 institutions and 22 from academics). To achieve the objectives of this study, data has been collected through questionnaire instrument through google format. Data analysis using frequencies, percentages and means revealed that the more there is a high impact (48%), between Islamic banking practices and social development for the poor. The main highlight this research the barrier unbanked population to access or have an adequate information of Islamic banking services. There is lack of awareness of Islamic banking to reach the proper information of serving poor and developing social welfare. The study contains three limitations. The first limitation was based on sample size of the study was 80, it could better to have more than eighty to get a lot of information of different sectors. The second limitation, the area of the study is only Mogadishu, it could better if the area of the study were included over all the country instead only Mogadishu.