Economic Challenges and Islamic Solutions for Sustainable Development in the Muslim World

Abstract

The Muslim world is confronted with complex economic challenges that hinder progress despite its abundance of natural and human resources. Issues such as poverty, unemployment, unequal distribution of wealth, corruption, dependency on foreign aid, and limited industrial and technological growth continue to weaken economic stability. Internal problems, including poor governance and lack of educational and research development, along with external pressures from global financial institutions, further aggravate the crisis. This paper examines these challenges in detail and explores Islamic economic principles as a framework for sustainable development. It highlights the importance of zakat, waqf, and interest-free financial systems, while also stressing the need for education, scientific research, technological advancement, and good governance. The study argues that by implementing reforms grounded in justice, equity, and cooperation, the Muslim world can overcome its current crisis and establish a self-reliant and sustainable economic model consistent with Islamic teachings.