Journal of Islamic Economic Insights
Journal of Islamic Economic Insights (JIEI) is a peer-reviewed academic journal dedicated to publishing high-quality scholarly research in the fields of Islamic economics, Islamic finance, halal business, socio-economic development, and related areas of economics, business, management, and public policy. The journal aims to provide an academic platform for researchers, practitioners, policymakers, and scholars to advance knowledge and critical discussion on Islamic economic thought, financial systems, ethical business practices, and sustainable socio-economic development. JIEI welcomes theoretical, empirical, conceptual, and applied studies that examine economic and business issues through Islamic perspectives, as well as interdisciplinary research that connects Islamic economics with contemporary global challenges. The journal encourages manuscripts that contribute to the development of Islamic economic theory, strengthen Islamic financial practices, support halal industry growth, and promote justice, sustainability, inclusiveness, and ethical governance in economic life. The scope of Journal of Islamic Economic Insights (JIEI) includes, but is not limited to, the following areas: Islamic economics and Islamic economic thought Islamic finance, banking, takaful, and capital markets Shariah-compliant financial innovation and fintech Zakat, waqf, sadaqah, and Islamic social finance Halal business, halal supply chain, and halal industry development Islamic entrepreneurship, SMEs, and family business Islamic accounting, auditing, and corporate governance Business ethics, Shariah governance, and institutional studies Microeconomics and macroeconomics from Islamic and conventional perspectives Development economics, poverty alleviation, and emerging markets International economics, trade, and finance Monetary, fiscal, and public policy Corporate finance and financial markets Strategic management and business policy Marketing, consumer behavior, and digital marketing Human resource management and organizational behavior Operations, supply chain, and business analytics Innovation management and technology adoption Sustainability, ESG, and responsible business Tourism economics, halal tourism, and service management Public sector management and socio-economic policy Interdisciplinary studies linking Islamic economics, business, finance, society, and public policy The journal accepts original research articles, conceptual papers, literature reviews, systematic reviews, bibliometric studies, case studies, and policy-oriented papers. Submissions may use quantitative, qualitative, mixed-method, comparative, or interdisciplinary approaches, provided that they demonstrate originality, methodological rigor, theoretical contribution, and relevance to the journal’s focus. Journal of Islamic Economic Insights (JIEI) particularly encourages manuscripts that address contemporary economic and business challenges from Islamic, ethical, and socially responsible perspectives. The journal seeks to support scholarly contributions that promote inclusive development, financial justice, sustainable business practices, halal ecosystem advancement, and the integration of Islamic values into economic and organizational decision-making.
Articles
20 Documents
<![CDATA[Islamic social finance and socioeconomic development: A systematic literature review ]]>
<![CDATA[Olivia Putri Dahlan]]>;
<![CDATA[Dimvy Rusefani Asetya]]>
<![CDATA[ Journal of Islamic Economic Insights Vol. 2 No. 1 (2026): January 2026 ]]>
Publisher : <![CDATA[PRIVIETLAB ]]>
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DOI: 10.55942/jiei.v2i1.1740
<![CDATA[Islamic social finance has increasingly been discussed as a complementary framework for addressing poverty, inequality, financial exclusion, and development financing gaps. Yet the literature remains dispersed across studies of zakat, waqf, digital governance, institutional performance, and the Sustainable Development Goals (SDGs). This article develops a more integrative synthesis by reviewing peer-reviewed studies published mainly between 2013 and 2024 and by organizing the evidence around four linked questions: how zakat contributes to poverty alleviation, how productive waqf supports long-term development, how Islamic social finance aligns with the SDGs, and which governance factors condition institutional effectiveness. The review follows a structured PRISMA-informed process and uses thematic synthesis rather than meta-analysis because the literature contains conceptual papers, case studies, bibliometric mapping, framework-building research, and empirical analyses with heterogeneous designs. The review shows that Islamic social finance performs at least three distinct but interrelated functions. First, zakat operates as a redistributive and welfare-stabilizing instrument that can improve household resilience and reduce selected poverty indicators when targeting and institutional quality are strong. Second, productive waqf creates a longer time horizon by converting endowed assets into sustainable income streams for education, health, microenterprise, and community infrastructure. Third, integration across social and commercial Islamic finance broadens scale, sustainability, and policy relevance. At the same time, the literature consistently identifies governance weaknesses, fragmented databases, weak reporting, limited professionalism among managers, and uneven digital adoption as the main obstacles to impact. The article concludes that Islamic social finance has real developmental value, but its contribution becomes stronger when institutions move beyond charity administration toward integrated governance, data transparency, and outcome-oriented social investment.]]>
<![CDATA[Islamic financial literacy: Determinants, measurement, and outcomes ]]>
<![CDATA[Dimvy Rusefani Asetya]]>;
<![CDATA[Sahara Putri Dahlan]]>
<![CDATA[ Journal of Islamic Economic Insights Vol. 2 No. 1 (2026): January 2026 ]]>
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DOI: 10.55942/jiei.v2i1.1742
<![CDATA[Islamic Financial Literacy (IFL) has become an important topic at the intersection of financial literacy, Islamic economics, and inclusive development. Although research on IFL has expanded, the field remains conceptually fragmented because studies vary in how they define, measure, and interpret the construct. This article presents a systematic literature review focused on three issues: determinants, measurement, and outcomes of IFL. The review shows that the most recurrent determinants are education, income, religiosity, demographic background, financial experience, and institutional access, although their effects differ across contexts. The literature also reveals substantial diversity in measurement practices. Some studies adapt conventional financial literacy scales, whereas others develop Islamic-specific instruments covering riba, profit-and-loss sharing, zakat, takaful, sukuk, and other Shariah-compliant concepts. This lack of measurement standardization weakens comparability across studies. In terms of outcomes, higher IFL is generally associated with better financial behavior, stronger intention to use Islamic products, improved financial management, greater market discipline, and higher financial well-being. Overall, the review argues that future IFL research requires clearer construct boundaries, more rigorous measurement, and stronger comparative evidence.]]>
<![CDATA[Islamic economic transformation in Pakistan: Prospects, structural impediments, and the imperative of shariah-compliant governance ]]>
<![CDATA[Waqas Ahmad Watto]]>
<![CDATA[ Journal of Islamic Economic Insights Vol. 2 No. 1 (2026): January 2026 ]]>
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DOI: 10.55942/jiei.v2i1.1787
<![CDATA[Pakistan, the world’s second-largest Muslim-majority nation by population, occupies a uniquely consequential position in the global discourse on Islamic economic thought. Decades after its constitutional declaration as an Islamic republic and the formal promulgation of the Objectives Resolution of 1949, the country’s economic architecture remains deeply entangled with interest-based (riba) financial instruments, structurally asymmetric wealth distribution, and governance frameworks that fundamentally diverge from maqasid al-Shariah, the higher objectives of Islamic law. This opinion article contends that Pakistan’s persistent macroeconomic instability, income inequality, and institutional underdevelopment are not merely technical failures of economic management but, at a deeper analytical level, symptoms of an incomplete and often performative engagement with the foundational principles of Islamic economics. Drawing on scholarship in Shariah-compliant finance, comparative institutional economics, and recent empirical literature on Pakistan’s financial sector, this article examines the structural barriers inhibiting genuine Islamic economic transformation, evaluates the current trajectory of Islamic banking and Zakat administration, critically interrogates the role of the state, and proposes a set of evidence-informed and normatively grounded policy directions. The central argument advanced herein is that a coherent, institutionally embedded embrace of Islamic economic principles, encompassing riba elimination, redistributive instruments such as zakat and waqf, ethical investment frameworks, and participatory finance, offers Pakistan not merely a theological aspiration but a practically viable pathway toward sustainable, equitable, and sovereignty-preserving economic development.]]>
<![CDATA[Islamic economics under Wilāyat al-Faqīh: Doctrinal foundations, governance structures, and the political economy of sanctions in the Islamic Republic of Iran ]]>
<![CDATA[Taqi Husaini]]>
<![CDATA[ Journal of Islamic Economic Insights Vol. 2 No. 1 (2026): January 2026 ]]>
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DOI: 10.55942/jiei.v2i1.1789
<![CDATA[This letter examines the intersection of Islamic economic thought, the constitutional doctrine of Wilāyat al-Faqīh (Guardianship of the Jurist), and the sustained impact of international economic sanctions on the Islamic Republic of Iran. Drawing on institutional economics, political economy, and Islamic jurisprudence (fiqh), this study argues that Iran's distinctive governance architecture, in which supreme jurisprudential authority is constitutionally empowered over all economic and financial affairs, has produced a hybrid economic system that is simultaneously ideologically constrained and structurally resilient. While the doctrinal foundations of Islamic economics, rooted in the prohibition of ribā (interest), the obligations of zakāt (alms tax), and the principle of adl (justice), provide a normative framework for economic governance, empirical evidence demonstrates that successive rounds of United States-led sanctions, particularly from 2012 and following the reimposition of maximum pressure in 2018, have severely disrupted macroeconomic performance. Per capita GDP declined from approximately USD 8,000 in 2012 to USD 5,000 by 2024 (World Bank, 2024), annual inflation reached 40–50% by 2023–2024, and the Iranian middle class contracted by an estimated 17–28 percentage points between 2012 and 2019. This study contributes to the literature by systematically situating these macroeconomic dislocations within the ideological parameters of the Wilāyat al-Faqīh governance model and assessing the adaptive strategies deployed by the state. The study discusses the policy implications for sanctions design, Islamic economic reform, and institutional resilience.]]>
<![CDATA[Sharia mortgage in Indonesia: A critical inquiry into regulatory adequacy, contractual integrity, and market transformation ]]>
<![CDATA[Cecep Bryan Firdaus]]>
<![CDATA[ Journal of Islamic Economic Insights Vol. 2 No. 1 (2026): January 2026 ]]>
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DOI: 10.55942/jiei.v2i1.1792
<![CDATA[This opinion paper critically examines the structural and regulatory architecture of Sharia-compliant mortgage financing, Kredit Pemilikan Rumah Syariah (KPR Syariah), in Indonesia, with particular attention to the normative tensions between classical Islamic jurisprudence and contemporary financial engineering. Drawing on established scholarship in Islamic finance, Indonesian positive law, and institutional economics, this study argues that the existing framework, while formally compliant with Fatwa Dewan Syariah Nasional—Majelis Ulama Indonesia, exhibits persistent ambiguities in contractual taxonomy, inadequate consumer protection architecture, and insufficient harmonization with the broader macroprudential objectives of Bank Indonesia and Otoritas Jasa Keuangan (OJK). This study further contends that the dominant murabahah-based KPR model, despite its widespread adoption, raises unresolved questions regarding risk distribution, profit margin transparency, and the authentic transfer of maqasid al-shari'ah principles into product design to be implemented. The analysis concludes with a normative agenda for reform oriented toward contractual fidelity, regulatory convergence, and genuine financial inclusion.]]>
<![CDATA[Beyond shariah compliance: Malaysia’s Islamic economy and the unfinished pursuit of Maqasid al-Shariah ]]>
<![CDATA[Mukhtar Idris Abu Bakr Adam]]>;
<![CDATA[Muhammad Ali]]>;
<![CDATA[Abdoulrahman Aljounaidi]]>
<![CDATA[ Journal of Islamic Economic Insights Vol. 2 No. 2 (2026): July 2026 ]]>
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DOI: 10.55942/jiei.v2i2.2081
<![CDATA[Malaysia occupies a singular position in the global Islamic economy: for more than a decade, it has topped the Global Islamic Economy Indicator, having assembled the one of the world’s most complete institutional ecosystems for Islamic finance, halal production, and Shariah governance (DinarStandard, 2024). As an opinion and conceptual article, this paper develops a critical argument based on recent indexed scholarship, policy documents, and institutional reports rather than primary empirical data. Malaysia’s success has produced a paradox. The maturation of a dual banking system, a deep sukuk market, and an integrated halal complex has been achieved largely through operational convergence with conventional finance, so that Shariah compliance—the avoidance of prohibited forms—has advanced far more rapidly than the realization of Maqasid al-Shariah, the higher socioeconomic objectives that give Islamic economics its moral purpose (Asutay, 2025; Mergaliyev et al., 2021). Drawing on recent Scopus- and Web of Science–indexed scholarship, this study characterizes the “substance gap,” appraises Value-Based Intermediation as a corrective policy architecture, and evaluates the reintegration of Islamic social finance and the sustainability agenda. It contends that the next phase of Malaysian leadership must pivot from compliance-based competitiveness to impact-based authenticity and cautions that instruments such as green sukuk and Environmental, Social, and Governance (ESG) alignment risk becoming a rebranding exercise unless anchored in substantive Maqasid reasoning.]]>
<![CDATA[Resilient or merely different? Reading the 2026 correction of Indonesia’s Islamic capital market ]]>
<![CDATA[Dimvy Rusefani Asetya]]>
<![CDATA[ Journal of Islamic Economic Insights Vol. 2 No. 2 (2026): July 2026 ]]>
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DOI: 10.55942/jiei.v2i2.2083
<![CDATA[In the first half of 2026, Indonesia’s Islamic capital market produced a striking divergence. According to the Financial Services Authority (OJK), the Indonesia Sharia Stock Index (ISSI) fell by more than 36% between May and June 2026 and Shariah-compliant market capitalisation contracted sharply, even as outstanding corporate sukuk grew by more than 15% year-to-date and sovereign sukuk held broadly stable (OJK, 2026). This commentary reads that divergence as a natural experiment on a claim frequently made for Islamic finance—that it is inherently more stable and resilient than its conventional counterpart. Drawing on Scopus- and Web of Science–indexed scholarship, the article argues that the resilience of sukuk relative to Shariah-screened equities reflects instrument structure rather than any distinctively “Islamic” immunity to risk; that Shariah screening does not insulate equity investors from systematic shocks; and that the market’s deeper vulnerability lies in a banking market share stalled near 7% and a shallow investor base. It contends that durable resilience must be built through substantive risk-sharing and Maqasid-oriented market depth rather than through compliance labelling, and it offers policy directions for Indonesia’s regulators and market builders.]]>
<![CDATA[Compulsion, compliance, and competitiveness: Indonesia’s mandatory halal regime and the ambition to lead the global halal economy ]]>
<![CDATA[Mochamad Dandi]]>
<![CDATA[ Journal of Islamic Economic Insights Vol. 2 No. 2 (2026): July 2026 ]]>
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DOI: 10.55942/jiei.v2i2.2086
<![CDATA[Indonesia has made a distinctive wager on the global Halal economy. Under Law No. 33 of 2014 on Halal Product Assurance, halal certification has shifted from a voluntary market signal to a legal obligation, which will be phased in for food and beverage products starting October 2024. The certifying authority or Badan Penyelenggara Jaminan Produk Halal (BPJPH) has been elevated to a non-ministerial body that reports directly to the President (Indonesia Satu, 2025). Officials now describe Indonesia as the only country operating “full sharia compliance” in food and beverages and report that the halal value chain contributes roughly 27% of the gross domestic product and grows faster than the wider economy (Bank Indonesia, 2026). Against the government’s stated ambition to move from third to first on the Global Islamic Economy Indicator (DinarStandard, 2024), this commentary asks whether legal compulsion can build genuine competitiveness in the halal industry. Drawing on Scopus- and Web of Science–indexed scholarship, this study argues that mandatory certification has delivered scale and a strong domestic value chain but risks an administrative burden that falls hardest on micro-enterprises, a governance bottleneck at the certifying authority, and a form-over-substance trap in which certification is mistaken for quality. It contends that competitiveness requires traceability, integration with Islamic finance, proportionate treatment of small enterprises, and mutual recognition of exports.]]>
<![CDATA[From charity to capital: Indonesia’s Islamic social finance surge and the case for blended finance ]]>
<![CDATA[Sahara Putri Dahlan]]>
<![CDATA[ Journal of Islamic Economic Insights Vol. 2 No. 2 (2026): July 2026 ]]>
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DOI: 10.55942/jiei.v2i2.2087
<![CDATA[Indonesia’s Islamic social finance is entering a new phase of development. The national collection of zakat, infaq, and sadaqah channelled through the zakat system reached approximately IDR 52.5 trillion by the second quarter of 2025, a 43% year-on-year increase, while the outstanding value of Cash Waqf Linked Sukuk (CWLS)—a hybrid instrument that fuses Islamic endowment with sovereign sukuk—grew by roughly 22% (Bank Indonesia, 2026). This commentary reads the surge and rise of blended commercial-social instruments such as CWLS as a movement from charity toward productive, capital-market-integrated social finance—the feature that most sharply distinguishes an Islamic economy from a conventional one. Drawing on Scopus- and Web of Science–indexed scholarship, the article argues that this is Indonesia’s most distinctive and promising frontier, but that the gap between realized and potential remains vast (national zakat potential is estimated at IDR 327 trillion, while realized cash waqf stood at only about IDR 2.9 trillion), that governance, fragmentation, and low literacy constrain scale, and that the strategic prize is genuine integration of commercial and social finance rather than parallel operation. It contends that blended instruments must be judged by measurable socioeconomic impact, not merely by the funds they mobilize for.]]>
<![CDATA[Scale without substance: Rethinking the future of shariah economics in Bangladesh ]]>
<![CDATA[Mohammad Sahabuddin]]>
<![CDATA[ Journal of Islamic Economic Insights Vol. 2 No. 2 (2026): July 2026 ]]>
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DOI: 10.55942/jiei.v2i2.2095
<![CDATA[Bangladesh has quietly become one of the most significant Islamic finance jurisdictions in the world, with Shariah-based banks now contributing nearly a third of national banking deposits. However, the depositor-confidence crisis and acute liquidity stress that engulfed several large Islamic banks in Bangladesh between 2022 and 2024 exposed a deeper tension that features between the distinct existence or scale and the substantive ethical objectives of the maqāṣid al-sharīʿah. This opinion article argues that Islamic finance in Bangladesh has largely expanded as “interest-free banking” in a conceptual sense, with comparatively less attention given to the moral-economic architecture that distinguishes Islamic economics from a Shariah-compliant model of conventional finance. From the evidence of Bangladesh's perspective, particularly concentrating on the Islamic moral economics landscape and literature on governance, efficiency, and profitability, it suggests that the recent crisis was simultaneously structural and governance-driven and therefore a maqāṣid failure rather than a purely prudential mechanism. The article advances a four-part reform agenda, centralized and independent Shariah governance, a functioning sovereign sukuk and Islamic money market, activation of zakat, waqf, and Islamic microfinance, and inclusion-oriented Islamic fintech, as the route from scale to substance. The Bangladeshi case offers a cautionary and generative lesson for maturing Islamic finance jurisdictions from a global perspective.]]>
