<![CDATA[This article discusses the role and strategies for the development of Small and Medium Enterprises (SMEs) within the context of an Islamic-based economy. With the rapidly growing economy and the increasing complexity of global challenges, the development of SMEs is crucial in creating economic sustainability that adheres to Sharia principles. This research examines key aspects of SME development in an Islamic context, including access to capital, risk management, Sharia-compliant marketing, and cross-sector collaboration. Through a qualitative and quantitative approach, this article outlines practical steps to enhance the role of SMEs in an Islamic-based economy. In-depth analyses of inhibiting and supporting factors are identified to provide better insights into SME development. Furthermore, the article proposes policy strategies that can be implemented by governments and relevant stakeholders to strengthen the SME ecosystem in compliance with Islamic economic principles. The research outcomes are expected to make a significant contribution to exploring the economic potential of SMEs while maintaining moral values and ethics in Islam. The conclusions drawn from this article can serve as a foundation for policymakers, business practitioners, and academics to guide sustainable, competitive, and ethical SME development within the context of an Islamic-based economy.]]>
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