This study described the effects of Islamic Finance practices/modes on social development, the objective of this study is to investigate the effects of Islamic finance practices on social development, to examine the effects the Islamic modes play in the reduction of poverty in Mogadishu Somalia, and to describe the effects of Islamic finance modes play in increasing jobs in Mogadishu Somalia, data was collected from 60 clients of Dahabshil Bank and Salaama Bank Mogadishu – Somalia. For data analysis, researchers managed correlation research design to test the effects of Islamic finance practices on social development by using SPSS software, also descriptive analysis such as frequency and percentage was used to analyze the characteristics of respondents. As a result of the analysis, the study revealed that all the dimensions of – Murabaha have a positive correlation with organizational performance. In conclusion, the result indicated that there are strong positive effects of Islamic finance practices and social development. In Recommendations, the researcher suggested that for future research a proportionate stratified random sample be used to compare several public sector institutions using a larger sample and needed to further investigate the potential relationships and effects of these variables and other extraneous variables, such as role Murabaha and mud araba have on poverty reduction and job creation.