This study aims to analyze the concept of the Circular Economy as a sustainable development model from the perspective of Islamic economics by examining its conceptual compatibility with Islamic principles, maqāṣid al-sharī'ah, and Islamic financial instruments in supporting sustainable development. This research employed a qualitative approach using a Systematic Literature Review (SLR). Relevant national and international scholarly publications published between 2019 and 2026 were systematically selected following the PRISMA guidelines. The collected literature was analyzed through content analysis to synthesize the conceptual relationship between Circular Economy principles and Islamic economic values. The findings reveal that the principles of the Circular Economy, including reduce, reuse, recycle, recover, repair, and regenerate, are highly compatible with Islamic economic principles such as tawazun (balance), maslahah (public benefit), amanah (trust), the prohibition of isrāf (wastefulness), and environmental stewardship (ḥifẓ al-bi'ah). The study further demonstrates that Islamic financial instruments, including zakat, productive waqf, green sukuk, and Islamic green financing, have significant potential to facilitate the implementation of Circular Economy practices. This research proposes an integrated conceptual framework linking Circular Economy, maqāṣid al-sharī'ah, Islamic economic instruments, and the Sustainable Development Goals (SDGs) to promote sustainable, equitable, and environmentally responsible development.
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