Islamic finance in the Maldives is experiencing remarkable progress, with significant developments in banking, waqf investment and zakat collection, reflecting increased public trust and institutional efficiency in the sector. Maldives Islamic Bank (MIB), the country's first full-fledged Islamic bank, has announced a record net profit of MVR282 million (US$18.26 million) for 2024, marking a 60% increase compared to the previous year. The bank's total asset value grew from MVR10 billion (US$647.6 million) in November 2023 to MVR11.4 billion (US$738.1 million) by the end of 2024. MIB attributes its success to improved customer confidence, enhanced digital services and innovative banking solutions. The bank is the only one in the Maldives that offers online account opening services, which contributed to a rise in deposits to MVR9.12 billion (US$590.48 million) by year-end. MIB also won two international awards in 2024, further cementing its position in the global Islamic finance sector.

Islamic finance is rooted in Shariah or Islamic law, which promotes the well-being of humanity and discourages harmful practices. This Element highlights the nexus between Islamic finance and sustainable development, emphasizing the ethical and socially responsible nature of Islamic finance. It discusses how Islamic financial institutions contribute to sustainable development through the achievement of Sustainable Development Goals , Environmental, Social, and Governance criteria, and Socially Responsible Investment practices. Case studies from different parts of the world demonstrate practical applications of Islamic finance principles in supporting SDG. It suggests reforms that can unlock the full potential of Islamic finance, including the institutionalization of Islamic social finance, convergence with commercial finance, leveraging technology, integrating Shariah-based financial products, considering social return as a benchmark for approving products, introducing blended finance, and collaborating with humanitarian agencies. The potential of Islamic finance for sustainable development provides valuable insights for academicians, practitioners, and policymakers.

This paper investigates the effects of Environmental, Social, and Governance (ESG) implementation on banking performance in emerging and developing countries. Applying the Two-step System Generalized Method of Moments (System-GMM) to panel data of 179 banks across 29 countries spanning 2016-2022, we find that ESG implementation significantly enhances overall banking profitability. However, when we assess the implications of ESG on Islamic banks, we find that overall ESG commitment significantly reduces profitability. As for the individual ESG pillar, we note the profit-enhancing effect of environmental pillar on both Islamic and conventional bank profitability. Some evidence is also uncovered for the significant positive effect of social pillar on conventional bank profitability. Finally, we note no significant influences from governance pillar. These results highlight the divergent impacts of ESG implementation on Islamic and conventional banks. We conclude that policymakers should exercise caution in designing and implementing ESG policies, ensuring they are tailored to promote optimal performance across different banking models. This study contributes to the growing body of the literature on sustainable finance and provides valuable insights for regulators and bank managers in emerging and developing economies.

This paper explores the intersection of Intellectual Property (IP) and Islamic finance, proposing a policy framework to integrate IP valuation into Sharia-compliant financing. Focusing on the UK, it also extends to global markets, including ASEAN, GCC, and MENA regions. The paper identifies gaps in current practices, particularly in incorporating IP assets into Islamic financial products, highlighting untapped market potential. It emphasizes the need for regulatory compliance, Sharia board approvals, and robust audit mechanisms to ensure ethical integration. Key recommendations include developing a comprehensive IP frame work, fostering international collaboration, and capacity building through education. The framework aims to align economic growth with ethical financing, enhancing transparency and the robustness of Islamic IP financing globally.