Theoretical Foundations Islamic Finance as a Catalyst for Green and Circular Economy: Insights from Maqasid al-Shariah and Global Sustainability Agendas
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Abstract
Purpose – This study examines how the green economy (GE) and circular economy (CE) can be integrated with maqasid al-shariah as a normative foundation for sustainable development, focusing on the contribution of Islamic finance instruments such as green sukuk, productive waqf, and Islamic fintech in supporting a low-carbon and socially inclusive transition.
Design/Methodology/Approach – A bibliometric and systematic literature review was conducted on Scopus and Web of Science publications from 2000 to 2024. Data were analyzed using RStudio (Bibliometrix) and VOSviewer to map publication trends, collaboration networks, keyword patterns, and thematic clusters, supported by thematic content analysis.
Findings – The integration of GE and CE with maqasid al-shariah has gained increasing scholarly attention, particularly after 2020, in line with global post-pandemic recovery agendas and the SDGs. Five main thematic clusters emerged: Islamic green finance, global investment flows, environmental governance, digital and green innovation, and ASEAN regional dynamics. These reflect the growing role of Islamic finance as both an ethical alternative and a catalyst for sustainability transformation.
Practical Implications – The findings encourage policymakers and Islamic financial institutions to incorporate maqasid-oriented values into green investment strategies and regulatory frameworks to accelerate inclusive and low-carbon development.
Originality/Value – This study provides an integrated framework linking global sustainability approaches with Islamic ethical principles. Unlike prior conceptual discussions, this study provides an evidence-based bibliometric mapping and evolutionary analysis of Islamic sustainable finance within global sustainability architecture.
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