Journal of Innovation in Business and Economics
Vol. 9 No. 02 B (2025): Journal of Innovation in Business and Economics

Constructing a multidimensional indicator for Islamic finance development

Idah Zuhroh (Faculty of Economics and Business, Universitas Muhammadiyah Malang, Malang, Indonesia)
Nazaruddin Malik (Faculty of Economics and Business, Universitas Muhammadiyah Malang, Malang, Indonesia)
Muhammad Khoirul Fuddin (Faculty of Economics and Business, Universitas Muhammadiyah Malang, Malang, Indonesia)
Fitri Rusdianasari (Faculty of Economics and Business, Universitas Muhammadiyah Malang, Malang, Indonesia)



Article Info

Publish Date
26 Oct 2025

Abstract

This study conducts a systematic literature review to evaluate existing indicators used in measuring Islamic finance development and proposes the Islamic Finance Development Indicator Plus (IFDI+), a multidimensional framework that extends beyond asset-based and compliance-oriented metrics. A total of 51 peer-reviewed articles published between 2019 and 2025 were analyzed following PRISMA standards, complemented by bibliometric mapping using VOSviewer. The review identifies five core dimensions essential for assessing Islamic finance development: 1) quantitative development, 2) governance and regulatory quality, 3) innovation and technology adoption, 4) social impact and economic inclusion, and 5) awareness and financial literacy. The IFDI+ framework integrates these dimensions into a cohesive evaluative model aligned with maqasid al-shariah and contemporary sustainability agendas. This study contributes to improving measurement practices and provides guidance for policymakers in strengthening multidimensional reporting, supporting fintech-enabling regulatory environments, and enhancing ESG and financial inclusion initiatives. Future research should operationalize and empirically validate IFDI+ across diverse jurisdictions.

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Journal Info

Abbrev

jibe

Publisher

Subject

Economics, Econometrics & Finance

Description

The Journal of Innovation in Business and Economics (JIBE) is published by the Department of Economics and Business at University of Muhammadiyah Malang in 2017. Previously this journal was known as Jurnal Media Ekonomi that was initially published in 2000. In 2011 until 2016, this journal was ...