ADVANCING THE SHARIAH ECONOMY THROUGH DIGITALISATION AND INNOVATION FOR SUSTAINABLE DEVELOPMENT
Keywords:
Shariah economy, digitalisation, Islamic FinTech, sustainable development, Maqasid al-ShariahAbstract
This study explores how digitalisation and innovation can advance the Shariah economy in achieving sustainable development goals. Adopting a thematic literature review of 30 Scopus-indexed articles published between 2023 and 2025, qualitative content analysis and thematic coding were applied to examine emerging technological applications and their alignment with maqasid al-shariah. The review identifies two dominant pathways. The first is the chronological development of themes: (a) 2010–2014, the digitisation of conventional Islamic banking and the emergence of early online zakat platforms; (b) 2015–2019, the rise of Islamic fintech start-ups, blockchain applications, and regulatory considerations; and (c) 2020–2025, integration with sustainable development goals through green sukuk, smart contracts, and advanced compliance systems. The second is emerging trends, including: (a) Islamic digital banks and neobanks, (b) AI, big data, and digital identity in Islamic finance, (c) decentralised Islamic social finance platforms, (d) integration of sustainability metrics with digital compliance tools, and (e) greater emphasis on collaborative ecosystems and standardisation. While these innovations show strong potential to reinforce the ethical and developmental mandate of the Shariah economy, persistent gaps remain in fragmented adoption, absence of standardised impact metrics, and limited integration into cohesive policy frameworks. The findings underscore that digital transformation, when strategically aligned with maqasid al-shariah, can act as a catalyst for inclusive, ethical, and sustainable economic growth. Policymakers and industry leaders are therefore urged to embed value-based principles into digital strategies to fully realise the Shariah economy’s contribution to sustainable development.
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