CURRENT ADVANCED RESEARCH ON SHARIA FINANCE AND ECONOMIC WORLDWIDE

Breaking the Stigma: How Social Status and Religious Values Shape Circular Economy Adoption - A Systematic Literature Review and Bibliometric Analysis

Asep Nur Imam Munandar — 2026-09-02

The circular economy (CE) has attracted growing scholarly and policy attention as a response to unsustainable linear consumption, yet adoption of circular practices, including second-hand purchasing, repair, and reuse, remains limited in emerging Muslim-majority economies. Social stigma and status concerns are established barriers to CE adoption, but the role of religious values in offsetting these barriers has received limited attention. This study systematically maps the fragmented literature on CE adoption barriers, social face consciousness, and Islamic consumption ethics through a systematic literature review integrated with bibliometric analysis following PRISMA 2020 guidelines. Six search strings applied to Scopus and Web of Science produced 145 initial records, of which 25 articles met the inclusion criteria for thematic synthesis; bibliometric analysis covered a corpus of 110 records using publication trend, citation, keyword co-occurrence, and geographic distribution analysis. The findings reveal three largely disconnected research clusters, CE behavior and adoption barriers, social face consciousness and status-oriented consumption, and Islamic consumption ethics and sustainability, and show that research rarely examines how religious values interact with social stigma in shaping CE adoption. This study contributes by identifying these structural gaps and proposing an integrative conceptual framework linking Islamic consumption ethics, social face consciousness, and CE adoption intention and behavior, offering a research agenda for advancing CE scholarship in emerging Muslim-majority markets.

The Influence of Islamic Financial Literacy and Qana’ah Attitude on the Decision to Choose Savings with a Wadiah yad-dhamanah Contract

Fernando Eko Prasetio Wibowo — 2026-09-28

Islamic financial literacy and Qana'ah attitude are two aspects that can influence individual decisions in choosing sharia-based savings products. Previous research has extensively examined Islamic financial literacy and savings decisions at Islamic banks, research that integrates financial knowledge and Qana'ah attitude in explaining the decision to choose savings with a Wadiah yad-dhamanah contract remains limited. This study aims to analyze the influence of Islamic financial literacy and Qana'ah attitude on the decision to choose savings with a Wadiah yad-dhamanah contract. A quantitative approach with a survey method was utilized in this study, involving 100 students from the Islamic Banking Study Program at UIN Sayyid Ali Rahmatullah Tulungagung, class of 2023. Data collection proceeded through questionnaires, with analysis via multiple linear regression using SPSS. Findings reveal that Islamic financial literacy has a positive and significant influence on the decision to choose Wadiah yad-dhamanah savings (t = 8.364; p < 0.001), whereas Qana'ah attitude also demonstrates a positive and significant influence (t = 14.842; p = 0.001). Simultaneously, both variables have a significant influence on the decision (F = 112.118; p = 0.001), explaining 69.8% of its variation. These findings indicate that the decision to choose Wadiah yad-dhamanah savings is influenced not only by understanding of Islamic financial principles and products, but also by Qana'ah attitude in managing finances. For Islamic banks, the results imply the importance of strengthening Islamic financial literacy education and product communication that emphasizes wise fund management per sharia principles to increase the use of Wadiah yad-dhamanah savings.

Zakat Management as a Tool for the Economic Empowerment of the Muslim Community: An Empirical Study of BAZNAS’s Role in Improving Community Well-Being

Siswahyudiyanto Siswahyudiyanto — 2026-11-06

Productive zakat management by the National Zakat Agency (BAZNAS) is often assumed to linearly alleviate poverty without examining operational barriers at the field level. This study aims to analyze zakat management by the National Zakat Agency (BAZNAS) of City X as an instrument for the economic empowerment of the Muslim community and its impact on community well-being. Using a descriptive qualitative approach, data were collected through in-depth interviews with BAZNAS representatives and mustahik, observation, and documentation studies. The results reveal that the business capital program increased average income by 25–30%, but it also faced critical operational barriers, including fragmented mustahik data that is not yet digitally integrated, limited competence of amil human resources in micro business management, and minimal sustainability of post-distribution mentoring, which often triggers bias in assessing program success. This study recommends practical implications for BAZNAS to accelerate the digitalization of its database and to institutionalize a sustainable business mentoring unit in order to improve zakat governance comprehensively. This study concludes that optimizing zakat as an instrument of economic independence cannot rely solely on the amount of funds allocated, but requires governance reform through database digitalization and the strengthening of sustainable business mentoring.

Analysis of the Concepts and Application of Murabahah and Musyarakah Financing in Islamic Banking

Edy Anas Ahmadi — 2026-11-06

Islamic banking offers various Sharia-based financing contracts, yet some are used more often than others. This qualitative literature study analyzes the concept and application of murabahah and musyarakah financing and identifies the factors behind the dominance of one contract in practice, using descriptive-analytical analysis. The literature analyzed comprises 25 references, including books, academic journal articles, fatwas of the National Sharia Council of the Indonesian Ulema Council (DSN-MUI), and other publications on Islamic banking published between 2000 and 2025. Sources were selected for their relevance to the concept and application of the murabahah and musyarakah contracts, their Sharia foundations, and the factors shaping their implementation in Islamic banking in Indonesia. The synthesis of the literature shows that murabahah tends to dominate because it offers margin certainty, carries risks that are comparatively easier to estimate, and makes financing easier to manage and supervise. Musyarakah, on the other hand, represents the principles of partnership and risk sharing through capital participation and profit distribution based on mutual agreement. Its implementation faces challenges in the form of business risk, supervisory complexity, and information asymmetry between the bank and the customer. The dominance of murabahah is also related to considerations of transaction efficiency, risk management, financial stability, and supervisory capacity. Developing musyarakah financing requires stronger governance, greater transparency, and technology to monitor customers’ business performance. This study highlights the gap between the partnership and risk-sharing principles of Islamic economics and a practice that favors certainty and ease of management.

Benchmarking the Business Model of Bank Syariah Indonesia Against International Best Practices: A Comparative Literature Review

Hirshi Anadza — 2026-11-06

The development of Islamic banking in Indonesia still faces challenges in Sharia governance, product diversification, risk management, digitalization, and regulatory harmonization when compared with practices in the Gulf Cooperation Council (GCC) countries and Malaysia. This study aims to analyze these gaps and to identify strategies for strengthening the competitiveness of Indonesian Islamic banking. It applies a PRISMA-based comparative literature review and a bibliometric analysis of 20 academic sources published between 2008 and 2026, with the discussion covering ten strategic dimensions of Islamic banking. The review identifies several main challenges: the dominance of murabahah financing, Sharia governance and supervision that are not yet optimally standardized, limited integration of financial technology, regulatory fragmentation, and the insufficient incorporation of sustainability indicators and Maqasid al-Shariah into performance measurement. It also draws attention to benchmark practices, namely centralized Sharia supervision, a more consolidated legal framework, product diversification, and the adoption of financial technology. The study concludes that improving the competitiveness of Indonesian Islamic banking calls for stronger governance, the development of profit-sharing-based products, regulatory harmonization, and digital transformation. Its contribution lies in a multidimensional comparative synthesis that serves as a conceptual basis for developing a hybrid performance index, one that integrates financial, digital, and sustainability aspects grounded in Sharia principles. These findings can serve as input for regulators and Islamic bank managers in formulating policies and strategies for sustainable industry development.