Integration of Commercial and Social Finance in Islamic Perspective: Ideas and Necessities

Islamic finance is challenged to be able to contribute positively in solving modern finance needs and at the same time realize Islamic vision in creating socio-economic justice and equilibrium in society. The integration of commercial and social finance is one way to address this challenge. This is possible since Islamic finance is having two potentials, namely Islamic finance is the fastest-growing segments of the global financial industry and the amount of social funds is always increasing; and Islamic finance is founded on the principles that that support socially inclusive and development promoting activities, financial inclusion, risk sharing, value based financial intermediation, reducing vulnerability of the poor and more broadly contributing to financial stability and development. The paper attempts to explore the foundations and unique characteristics of Islamic financial institution practice that could provide a better platform to achieve socioeconomic justice as through integration of commercial and social finance. In this regards three dimensions will be discussed, namely Islamic finance and the idea of good finance, Islamic finance and socio-economic equilibrium and Islamic finance the re-definition of Shariah compliance