Integrating Maqasid al-Shariah into Sustainable Islamic Banking: A Systematic Literature Review

Abstract

Purpose: This study aims to systematically review the academic literature on the integration of Maqasid al-Shariah into sustainable Islamic banking practices. It explores how Islamic ethical principles are operationalized to achieve financial, social, and environmental objectives aligned with global sustainability agendas.
Methodology: The study adopts a Systematic Literature Review (SLR) methodology, guided by the PRISMA protocol. A total of 49 peer-reviewed journal articles published between 2015 and 2024 were selected from leading databases (Scopus, Web of Science, ScienceDirect). Thematic synthesis was conducted to identify key patterns, challenges, and research gaps.
Findings: The results indicate a growing convergence between Maqasid al-Shariah and sustainability frameworks such as ESG and SDGs. Islamic financial institutions have begun implementing value-based intermediation, green banking initiatives, and Maqasid-compliant performance indices. However, inconsistencies in regulatory standards, human capital readiness, and impact measurement tools continue to limit effective implementation.
Practical implications: The findings offer guidance for regulators, Islamic banks, and policymakers on aligning Shariah principles with sustainability objectives through regulatory harmonization, ESG integration, and innovation in ethical financial products. Originality: This review contributes to the Islamic finance literature by consolidating fragmented insights, proposing a thematic framework for Maqasid-based sustainability, and identifying avenues for future research and practice. It highlights the strategic potential of Islamic finance to contribute meaningfully to the global sustainable finance discourse. Kata Kunci: Islamic banking, Maqasid al-Shariah, Performance measurement, Shariah compliant, Sustainability