CURRENT ADVANCED RESEARCH ON SHARIA FINANCE AND ECONOMIC WORLDWIDE

Islamic Economic Law and Asset Redistribution: A Study of Distributive Justice in Parepare City

Anggeryani Syam — 2026-06-22

Economic inequality remains a persistent structural challenge in developing societies, particularly in the unequal ownership and control of productive assets, a condition that continues to shape the socio-economic landscape of Parepare City. This study aims to analyze the contribution of the concept of distributive justice in Islamic Economic Law to mitigating asset distribution inequality in the community of Parepare City. The research employed a descriptive qualitative method with a phenomenological approach. Primary data were collected through in-depth interviews with Islamic economics scholars, administrators of zakat and waqf institutions, and micro- and small-scale business owners in Parepare City. Secondary data were obtained from reports on poverty statistics, income distribution, and national zakat management. The findings reveal that asset distribution inequality in Parepare City is largely driven by structural barriers within market mechanisms that lead to the concentration of capital among certain economic groups. As a result, low-income communities experience limited access to productive economic resources. The concept of distributive justice in Islamic Economic Law has strong relevance as an instrument for mitigating asset inequality. Its implementation can be realized through the transformation of zakat and waqf management from a charitable-oriented approach into a productive economic empowerment model. Furthermore, the synchronization of more inclusive local regulations is necessary to ensure equitable access to economic resources and to strengthen the economic empowerment of lower-income communities.

Towards a Typology of Innovation Regimes: Horizontal, Vertical, Schumpeterian, and Al-Shāfiʿī’s Epistemic: Beyond the Dominant Paradigm of Islamic Finance

Abderrazak Belabes — 2026-06-22

This article offers a critical reinterpretation of contemporary innovation theories, breaking with unidimensional approaches centered on Schumpeterian creative destruction. It develops an original analytical typology based on four innovation regimes: horizontal, vertical, Schumpeterian, and epistemic, drawing on the epistemology of al-Shāfiʿī. Horizontal innovation relies on a logic of diffusion of uses and stabilization of digital ecosystems, characterized by structured incrementalism and strong integration of user interfaces. Vertical innovation refers to a logic of sovereignty and power, where technology becomes a geostrategic decision-making infrastructure closely linked to state apparatuses and security concerns. Schumpeterian innovation corresponds to a disruptive dynamic based on creative destruction, but its contemporary limitations stem from the production of systemic instabilities. Finally, epistemic innovation is mobilized through al-Shāfiʿī’s contribution as a normative architecture for validating knowledge, based on methodological coherence and the regulation of conditions for truth production. This dimension introduces an analytical opposition between the ontology of conflict associated with Peter Thiel and Alex Karp, where innovation is conceived as asymmetric competition and the production of technological monopolies, and an ontology of epistemic stability centered on the validation, coherence, and pacification of knowledge. The article thus shows that innovation is not a homogeneous process, but a field structured by competing regimes of rationality. This typology allows for a reconfiguration of the measurement and governance of innovation, particularly in Muslim-majority economies, by integrating institutional, geostrategic, and epistemic criteria, beyond the dominant paradigm of Islamic finance, where innovation is conflated with market validation in global finance.

Internalization of Islamic Economic Law in Facing the Challenges of Shopee’s Digitalization

Nur Aefih — 2026-06-22

The development of digital technology has driven significant changes in the economic transaction system of society, particularly through the use of digital platforms such as Shopee. These changes have brought various conveniences to trading activities, but also raise new challenges in terms of legal regulation, consumer protection, and the application of Islamic economic law principles. This study aims to analyze the concept of Islamic economic law in digital transactions, examine regulatory challenges in the digital era, and formulate a reconstruction model of Islamic economic law oriented towards the paradigm of justice in transactions on digital platforms. This study uses a normative legal research method with a conceptual and legislative approach, supported by a literature review of various legal sources and relevant literature. The results show that the principles of Islamic economic law, such as justice (al-’adl), transparency, and benefit (maslahah), remain relevant in regulating digital transactions, but require regulatory reconstruction that is adaptive to technological developments. This reconstruction of Islamic economic law is necessary through strengthening digital contracts, platform responsibility, consumer protection, and the integration of the maqasid al-shariah principle in regulatory development. Thus, the reconstruction of Islamic economic law is expected to be able to create a digital transaction system that is fair, transparent, and oriented towards the welfare of society in the modern digital economic era.

The Transformation of the Meaning of Halal Certification from the Perspective of MSME Owners Following the Implementation of the Mandatory Halal Policy in 2026

Rahmawati Rahmawati — 2026-05-30

The implementation of the mandatory halal policy in 2026 has brought significant changes to the management practices of Micro, Small, and Medium Enterprises (MSMEs). However, studies examining how MSME owners interpret the meaning of halal certification following the implementation of this policy remain relatively limited. This study aims to explore the transformation of the meaning of halal certification from the perspective of MSME owners after the implementation of the 2026 mandatory halal policy. The research employed a qualitative approach using a transcendental phenomenological design. Data were collected through in depth interviews, field observations, and documentation involving MSME owners who had obtained halal certification. The data were analyzed using phenomenological reduction and thematic analysis. The findings reveal that halal certification is no longer perceived merely as a means of complying with regulatory requirements; rather, it has evolved into a business identity, a mechanism for building consumer trust, a business development strategy, and a factor supporting business sustainability. These findings highlight that halal certification serves a broader function as a strategic asset for enhancing the competitiveness of MSMEs. The novelty of this study lies in its exploration of the lived experiences of MSME owners in constructing the meaning of halal certification through a transcendental phenomenological approach, thereby providing a conceptual contribution to the development of halal certification studies in Indonesia, by explaining how the meaning of halal certification is socially constructed beyond regulatory compliance through the lived experiences of MSME owners.

Green Sukuk and the Political Economy of Sustainability: Rethinking Islamic Finance beyond Market Logics

Abdulrhman Mohmmad Alamoudi — 2026-07-21

This study critically examines whether green sukuk represent a genuine transformation in Islamic finance or primarily reproduce the market-oriented logics of contemporary sustainable finance. It develops an integrated analytical framework combining political economy, financialization, assetization, and Maqasid al-Shariah to evaluate green sukuk beyond their legal structure and financial performance. Employing a qualitative conceptual methodology, the study draws on a critical literature review, documentary analysis of international sustainability and Islamic finance standards, and theory-driven interpretive analysis. The findings indicate that while green sukuk have expanded the participation of Islamic finance in climate-related investment and sustainable development, their institutional evolution remains largely embedded within global market-based sustainability governance. Consequently, environmental legitimacy is often assessed through financial and regulatory frameworks rather than broader ethical objectives. From a Maqasid al-Shariah perspective, the study argues that the distinctiveness of Islamic sustainable finance should be evaluated according to its contribution to justice, public welfare, environmental stewardship, and intergenerational responsibility, rather than contractual compliance alone. The paper contributes to the literature by proposing a Maqasid-oriented paradigm for evaluating green sukuk beyond market-oriented performance criteria. This perspective provides a broader conceptual foundation for future research, policy development, and governance reforms aimed at strengthening the ethical contribution of Islamic finance to sustainable development.