International Journal of Islamic Business & Management; Vol. 2, No. 1; 2018 ISSN 2576-7674 E-ISSN 2576-7682 Published by Centre for Research on Islamic Banking & Finance and Business,USA 67 Islamic Microfinance and Sustainable Development Goals in Bangladesh Md. Harun Ur Rashid 1 , Mohammed Jashim Uddin 1 & Shah Asadullah Mohd. Zobair 1 1 International Islamic University Chittagong (IIUC), Bangladesh Correspondence: Md. Harun Ur Rashid, Dept. of Economics & Banking, IIUC, Tel: +8801928953050, Email:harunais88@gmail.com Received: May 23, 2018 Accepted: May 30, 2018 Online Published: June 6, 2018 Abstract The main objective of this study is to explore the Islamic Microfinance Instruments in achieving the Sustainable Development Goals (SDGs) in Bangladesh. The methodology of this study is based on secondary data including existing relevant literature, and annual reports of different financial institutions. The findings of this study show that Islamic microfinance institutions have a broader scope to attain SDGs through their various investment modes.The study categorizes the Islamic microfinance instruments into four broadly parts which are profit and loss sharing financing, non-profit & loss sharing financing, Islamic social enterprise based financing and charity based financing which have a positive effect to the real sector of the sustainable economy that will lead towards achieving SDGs. The Islamic Microfinance institutions are continuing their efforts in attaining SDGs through their various products. With growing the potentiality, Islamic microfinance has both direct and indirect impacts on ensuring economic development, environmental sustainability, and social inclusion by creating employment opportunity, spreading knowledge and skills, making self-dependent, protecting from adverse effects. The paper also tries to put recommendations to reduce the challenges of Islamic microfinance acting as impediments to achieving the SDGs. Keywords: Islamic Microfinance (IMF), Islamic Microfinance Institutions (IMFIs), Sustainable Development Goals (SDGs), Bangladesh. 1. Introduction A shift of relationship between people and nature regarding enhancement of humanity results the need and concept of sustainable development (Hopwood, Mellor, & O'Brien, 2005). Sustainable Development can be defined as the state of the world which can be attained by combining local and global effort to meet the needs of human being with the activities that will ensure the safety of the society and environment of future generation (Kates, Parris, & Leiserowitz, 2005). For ensuring a world with sustainable development, UN declared Sustainable Development Goals (SDGs) in 2014. UN declared 17 goals to be achieved in 2030 to ensure sustainable devolvement. SDGs are the successor to the MDGs which were expected to be achieved within 2015. Throughout the world, countries are planning and using different types of tools to achieve SDGs. In this instance, the talk regarding the sense of Islamic Micro Finance Tools is getting huge attention since these tools are based on the principles that are consistent with the well-being of humanity. Islamic microfinance tools contributed a lot to attain MDGs successfully in the economy having the existence of such tools. The contribution of microfinance in achieving SDGs through alleviating poverty and generating employment is recognized globally. But among