محمدعلی بابائی

This study investigates the impact of Islamic banking development on the Human Development Index (HDI) and income inequality (Gini coefficient) in selected countries of the MENA region over the period ۲۰۰۰-۲۰۲۴. The research employs an analytical approach based on panel data, utilizing both panel data models (fixed and random effects) and the Autoregressive Distributed Lag (Panel-ARDL) framework for estimation. The key findings indicate that the development of Islamic banking has a positive and significant impact on the Human Development Index; this effect is persistent in both the short and long run, demonstrating the potential of Islamic banking as a complementary tool for enhancing welfare levels. In contrast, the impact of Islamic banking on income inequality is more complex. While the static analysis shows that Islamic banking development is associated with reduced inequality, the dynamic analysis reveals dual effects: it reduces inequality in the short run but exhibits a weak positive effect (increasing inequality) in the long run. The results also highlight the crucial importance of investment in health and the challenges arising from inefficient allocation of educational resources. In conclusion, this research posits that Islamic banking can play a constructive role within the framework of sustainable development, but realizing its maximum positive effects requires meticulous policy-making and regulatory oversight.