Artificial Intelligence and Green Finance in Islamic Economics: An Integrated Framework for ESG-Maqasid Alignment and Sustainable Development Goals Achievement

Ahmad Fauzi bin Ismail
Nur Syahirah binti Mohd Razali
Zulkifli bin Hassan

Proceeding of The International Conference on Economics, Accounting, and Taxation
Vol. 3 No. 1 (2026): Proceeding of the International Conference on Economics, Accounting, and Taxati

 This paper presents an integrated conceptual framework that bridges Artificial Intelligence (AI), green finance, and Islamic economics through the lens of Maqasid al-Shariah and Environmental, Social, and Governance (ESG) principles. Against the backdrop of the United Nations Sustainable Development Goals (SDGs), the halal industry is undergoing rapid digital transformation, yet the convergence of AI-enabled FinTech, Shariah-compliant green sukuk, social finance instruments such as waqf and zakat, and robust governance frameworks remains underexplored in the literature. Using a systematic literature review and conceptual model development, this paper identifies five pillars — Islamic Green Finance, AI-Driven Compliance, Halal Industry Governance, Social Empowerment Finance, and SDG-Maqasid Governance — as the core dimensions of the proposed framework. The findings reveal that AI and FinTech tools significantly enhance Shariah screening efficiency, risk assessment accuracy, and transparent ESG reporting. Furthermore, waqf-based blended finance models and digital sukuk platforms are positioned as catalysts for inclusive growth and SDG achievement in Muslim-majority economies. This paper contributes a synthesised theoretical foundation for researchers, policymakers, and industry practitioners seeking to operationalise sustainable Islamic finance.