Exploring the Integration of Islamic Ethical Values into Modern Economic Practices: A Case Study of Financial Systems
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Abstract
This study explores the integration of Islamic ethical values into modern financial systems, focusing on how Islamic banking and finance can contribute to creating a more equitable, transparent, and sustainable global economy. By examining the experiences of Malaysia, Indonesia, and the UAE, the research highlights the role of Islamic financial institutions in promoting social welfare, financial inclusion, and economic justice through mechanisms such as profit and loss sharing, zakat (charitable giving), and waqf (endowment). The study demonstrates that Islamic banking, grounded in Shariah principles, provides a viable alternative to conventional finance by fostering fairness and shared risk among stakeholders. Despite its successes, challenges such as regulatory barriers, lack of awareness outside Muslim-majority regions, and the incompatibility with global financial systems hinder the broader adoption of Islamic finance. However, the growing demand for ethical investing and sustainable finance presents significant opportunities for Islamic finance, particularly through innovations like green sukuk (Islamic bonds) that align with global sustainability goals. The research concludes that while challenges remain, Islamic finance holds the potential to reshape the global financial system, offering an ethical and socially responsible alternative that can address global economic inequality, social welfare, and environmental sustainability.
Keywords:
Islamic finance Islamic banking social welfare sustainability green sukuk zakat financial inclusionReferences
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