Gender-Oriented Islamic Microfinance Performance in Supporting the Achievement of the Sustainable Development Goals

Abstract

This study examines the financial performance of gender-oriented Islamic microfinance institutions and their contributions to the Sustainable Development Goals (SDGs). Utilizing a qualitative, exploratory case study design, the research incorporates in-depth interviews, observations, and documentation, analyzed through thematic analysis. The results show that gender-based financing is associated with greater financial stability, evidenced by lower Non-Performing Financing (NPF) rates, higher customer loyalty, and more productive fund utilization. Gender orientation serves as both a risk-mitigation strategy and a mechanism for women's economic empowerment, positively affecting family welfare and micro-enterprise growth. The findings confirm that Islamic microfinance performance is multidimensional, encompassing portfolio stability, adherence to Islamic principles, and economic empowerment as essential factors for institutional sustainability. Policy implications underscore the importance of integrating business training and financial literacy into financing programs to enhance their impact on the SDGs. The study introduces a gender-oriented Islamic microfinance performance model based on the triple impact of financial sustainability, social empowerment, and sustainable development. Gender orientation is identified as an effective management strategy for strengthening institutional stability and advancing inclusive development.