Journal of Noesantara Islamic Studies

THE EVOLUTION OF ISLAMIC ECONOMICS: PRINCIPLES, PRACTICES, AND THE GLOBAL IMPACT OF ISLAMIC BANKING

2026-02-11T21:34:51+07:00

Islamic economics has emerged as an important alternative economic paradigm that integrates ethical values, legal principles, and economic activities derived from Islamic teachings. In recent decades, the rapid expansion of Islamic banking has positioned Islamic economics as a significant component of the global financial system, raising questions about its evolution, practical implementation, and broader international impact. This study aims to analyze the evolution of Islamic economics by examining its foundational principles, contemporary practices, and the global role of Islamic banking. The research employed a qualitative and descriptive-analytical approach, drawing on secondary data from academic literature, policy documents, and international financial reports related to Islamic finance. Data were analyzed through thematic and comparative analysis to explore the relationship between Islamic economic principles and institutional banking practices. The findings indicate that Islamic banking has successfully translated core Islamic economic principles, such as risk sharing, asset backing, and ethical responsibility, into modern financial operations, while also adapting pragmatically to global regulatory and market environments. The study further reveals that Islamic banking has gained global relevance by promoting ethical finance, financial inclusion, and institutional stability. The study concludes that Islamic economics represents an adaptive and evolving economic framework in which Islamic banking serves as a key mechanism for integrating ethical values into contemporary global finance.

HADITH AND ITS ROLE IN SHAPING ISLAMIC LEGAL AND THEOLOGICAL SYSTEMS

2026-04-11T09:52:25+07:00

Hadith constitutes a foundational source in Islamic intellectual tradition, shaping both legal reasoning and theological articulation alongside the Qur’an. Ongoing debates concerning authenticity, interpretation, and contemporary relevance highlight the need for a comprehensive re-examination of its role within evolving socio-legal contexts. This study aims to analyze how Hadith functions as a normative and interpretive framework in the formation of Islamic legal and theological systems. A qualitative interpretive design was employed, integrating isn?d analysis, thematic textual examination, and comparative study of major legal and theological schools, supported by contemporary scholarly discourse. Results indicate that Hadith operates as a multidimensional source that informs detailed legal rulings and doctrinal positions, with methodological diversity across schools enabling both continuity and adaptability. Findings further reveal that context-sensitive interpretations enhance the applicability of Hadith in addressing modern issues, while text-oriented approaches provide structural stability. This study concludes that Hadith remains a dynamic and authoritative source, bridging revelation and interpretation, and offering a flexible yet coherent framework for the development of Islamic legal and theological thought in both classical and contemporary contexts.

ISLAMIC ECONOMICS AND SUSTAINABLE DEVELOPMENT: TOWARDS AN INCLUSIVE AND ETHICAL GLOBAL ECONOMY

2026-05-25T21:26:13+07:00

The growing challenges of economic inequality, environmental degradation, and social exclusion have prompted a search for alternative economic systems. Islamic economics, grounded in principles of justice, equity, and responsible resource management, offers a promising solution to these global issues. This study aims to explore how Islamic economics can contribute to sustainable development by fostering an inclusive and ethical global economy. The research employs a qualitative approach, utilizing interviews with key informants and case studies from countries that have implemented Islamic economic principles. Data collected highlights the alignment of Islamic economics with the goals of sustainable development, emphasizing social welfare, environmental stewardship, and equitable wealth distribution. The study reveals that Islamic economic principles not only promote economic growth but also ensure that such growth benefits all segments of society without compromising environmental integrity. Barriers to the widespread adoption of Islamic economics, such as institutional resistance and limited awareness, are also identified. The findings suggest that integrating Islamic economic principles into global economic systems could significantly contribute to achieving the United Nations' Sustainable Development Goals. This research provides valuable insights for policymakers, business leaders, and scholars seeking to incorporate Islamic economics into development strategies.