<![CDATA[This study focuses on the decline of Islamic economic thought during the colonial era, spanning from the sixteenth to the early twentieth century. Islamic economic thought, which had previously flourished through the works of classical scholars such as Abu Yusuf, Al-Mawardi, and Ibn Khaldun, experienced a long period of stagnation. Western colonialism not only conquered strategic territories of the Muslim world but also undermined the intellectual foundations and economic institutions that had been established for centuries. The capitalist system introduced by the colonizers replaced the Islamic economic framework, including the role of zakat, the bait al-mal, hisbah, and Sharia-based markets. As a result, scholars increasingly focused on ritual aspects of worship, while socio-economic thought was marginalized. Using a literature review method, this study analyzes the underlying factors of the decline, its impact on Muslim societies, and its implications for the delayed resurgence of Islamic economics in the modern era. The findings reveal that colonialism had a long-term impact in the form of disrupted intellectual traditions and the marginalization of Muslim economies, although the revival of Islamic economic thought became more evident in the twentieth century. Furthermore, the study highlights the significance of understanding this historical decline for the current development of Islamic economics, as it provides valuable lessons for strengthening intellectual independence, revitalizing Islamic socio-economic institutions, and ensuring that contemporary Islamic economic thought remains dynamic, innovative, and responsive to global challenges.]]>
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