Sharia Oikonomia Law Journal

Blockchain-Based Waqf Management: A Sharia-Compliant Innovation for Transparent Governance in Malaysia

Zain Nizam, Rashid Rahman, Aiman Fariq — Mon, 22 Dec 2025 00:00:00 +0700

The governance of waqf institutions in Malaysia has faced persistent challenges related to transparency, accountability, and public trust. Traditional waqf management practices often lack systematic reporting, real-time monitoring, and effective stakeholder engagement, leading to inefficiencies and potential misuse of assets. In response to these issues, this study explores the implementation of blockchain technology as an innovative and Sharia-compliant solution to enhance waqf governance. The aim of this research is to examine the potential of blockchain-based systems to provide transparent, immutable, and decentralized management mechanisms for waqf assets within the Malaysian context. Employing a qualitative methodology, data were gathered through interviews with Islamic finance experts, waqf practitioners, and blockchain developers, complemented by document analysis of regulatory frameworks and case studies. The findings indicate that blockchain technology can significantly improve waqf transparency, traceability of donations, and real-time auditability, while ensuring compliance with Islamic legal principles. However, successful adoption requires legal reform, stakeholder digital literacy, and standardized technical frameworks. This research contributes to the evolving discourse on Islamic financial innovation, highlighting the transformative potential of blockchain for ethical and transparent asset management in Muslim societies.

The Role of Green Sukuk in Financing Renewable Energy Projects in Indonesia: A Legal and Financial Framework Analysis

Indah Dwiprigitaningtias, Mona Al-Johani, Omar Ahmad — Fri, 12 Dec 2025 00:00:00 +0700

The increasing global demand for sustainable energy has positioned Green Sukuk as an innovative Islamic financial instrument to support renewable energy development while adhering to Sharia principles. Indonesia, as the largest issuer of sovereign Green Sukuk among Muslim-majority countries, demonstrates significant potential in aligning environmental sustainability with Islamic finance. This study aims to analyze the legal and financial frameworks governing Green Sukuk issuance in Indonesia and evaluate its effectiveness in financing renewable energy projects. A qualitative-descriptive method was employed using a doctrinal legal approach combined with case study analysis of Indonesia’s Green Sukuk programs between 2018 and 2023. The study examines regulatory documents, Ministry of Finance reports, and project financing data to assess compliance with both Sharia standards and environmental governance frameworks. The findings reveal that Green Sukuk has successfully mobilized capital for renewable energy and sustainable infrastructure, particularly in solar, geothermal, and hydropower projects. However, challenges persist regarding project selection transparency, verification standards, and the integration of international green finance taxonomy. The research concludes that strengthening the legal architecture, enhancing cross-sectoral governance, and developing standardized Green Sukuk evaluation mechanisms are essential to maximize its role in achieving Indonesia’s energy transition and sustainability goals.

Legal Protection for Consumers of Sharia Fintech Lending (Pinjol Syariah) in Indonesia: A Regulatory and Ethical Review

Emmi Rahmiwita Nasution, Michael Turner, Elvis Ewane, Emmi Rahmiwita Nasution — Sun, 07 Dec 2025 00:00:00 +0700

The rapid expansion of Sharia-compliant Financial Technology (Fintech) lending in Indonesia offers significant opportunities for financial inclusion. However, this growth has outpaced the development of a comprehensive regulatory framework, exposing consumers to considerable risks, including data privacy breaches, unclear contract terms, and unethical debt collection practices that may contravene Islamic principles. This study aims to critically analyze the adequacy of the current legal framework in providing protection for consumers of Sharia Fintech lending services in Indonesia, identifying key regulatory gaps and ethical inconsistencies. This research utilizes a normative juridical method. It involves a systematic analysis of primary legal sources, including laws and regulations from Indonesia’s Financial Services Authority (OJK), alongside secondary sources like academic literature and relevant case law. The analysis is further enriched by an ethical review based on foundational principles of Islamic law (Sharia). The findings reveal significant deficiencies in the existing legal infrastructure. While OJK regulations are in place, critical gaps persist concerning personal data protection, the transparency of digital contracts (akad), and effective dispute resolution mechanisms. Several prevalent industry practices, particularly in debt collection, were found to be misaligned with Sharia principles of justice (al-’adl) and the prohibition of harm (dharar). Legal protection for consumers in Indonesia’s Sharia Fintech lending sector is currently insufficient. Urgent regulatory reforms are necessary to strengthen data privacy laws, enforce transparent and fair contracts, and ensure that all operational practices strictly adhere to Sharia ethics to build a sustainable and trustworthy digital Islamic economy.

Navigating Sharia Compliance in Fintech Startups: Legal Challenges and Opportunities in the United Kingdom

Daniel Wilson, Lucy Taylor, Thomas Harris — Wed, 17 Dec 2025 00:00:00 +0700

The rapid growth of fintech innovation in the United Kingdom has created new pathways for financial inclusion, particularly among Muslim consumers seeking Sharia-compliant alternatives. However, the integration of Islamic financial principles within a secular regulatory framework presents legal ambiguities and operational challenges for fintech startups. The existing legal environment in the UK does not explicitly accommodate Sharia compliance, creating uncertainties for emerging Islamic fintech ventures. This study aims to examine the legal barriers and institutional opportunities for achieving Sharia compliance in UK-based fintech startups. A qualitative legal research methodology was employed, involving doctrinal analysis of UK financial regulations, Islamic jurisprudential sources, and policy reports, complemented by expert interviews with fintech entrepreneurs, Sharia scholars, and legal professionals. The findings reveal a significant regulatory gap concerning the certification, standardization, and recognition of Sharia-compliant fintech models. However, opportunities exist through regulatory sandboxes, ethical finance frameworks, and collaboration with private Sharia advisory boards. The study concludes that legal innovation, inter-institutional dialogue, and policy refinement are critical to fostering a viable ecosystem for Islamic fintech in the UK. Recommendations include developing a hybrid compliance model and enhancing regulatory clarity to support both innovation and religious integrity.

Prospects of Green Sukuk for Environmental Financing in Brazil: A Legal and Shariah Perspective

Bruna Costa, Rafaela Lima, Thiago Rocha — Tue, 23 Dec 2025 00:00:00 +0700

Brazil, as one of the world's most biodiverse countries, faces mounting environmental challenges requiring sustainable financing mechanisms aligned with global climate objectives. Green bonds have gained traction in Brazil, yet Shariah-compliant financial instruments remain largely unexplored, despite their global expansion. Green sukuk—Islamic bonds structured to finance environmentally beneficial projects—offer a unique opportunity to bridge Brazil’s sustainability goals with ethical finance practices grounded in Shariah principles. This study explores the legal and Shariah viability of introducing green sukuk as an alternative instrument for environmental financing in Brazil. Employing a qualitative legal research design, the study analyzes Brazil’s existing environmental finance framework, sukuk-related laws in key Islamic finance jurisdictions, and Shariah standards from bodies such as AAOIFI and IFSB. Interviews with Islamic finance scholars, legal experts, and Brazilian regulators supplement the doctrinal analysis. Findings indicate that while Brazil’s regulatory environment permits green financial instruments, legal reforms and institutional support would be necessary to accommodate Shariah-compliant structures. The study concludes that green sukuk could be a viable tool in Brazil’s sustainable finance arsenal, provided that cross-jurisdictional legal harmonization and Shariah alignment are proactively addressed.

Integrating the Sustainable Development Goals (SDGs) into Maqasid Al-Shari'a: A Framework for Modern Islamic Economic Law

Muh. Nur, Shahinur Rahman, Emma Clark, Mutiara M — Wed, 10 Dec 2025 00:00:00 +0700

The growing global emphasis on sustainable development has prompted renewed interest in aligning the United Nations’ Sustainable Development Goals (SDGs) with Islamic legal and ethical principles. This study explores the conceptual integration of the SDGs within the framework of Maqasid al-Shari‘a (the higher objectives of Islamic law), focusing on how Islamic economic law can operationalize sustainability through justice, equity, and human welfare. The research aims to construct a normative and practical framework that harmonizes the ethical imperatives of Maqasid al-Shari‘a with the multidimensional targets of the SDGs, particularly in areas of poverty alleviation, environmental protection, and social inclusion. A qualitative doctrinal approach is employed, combining textual analysis of classical Islamic legal sources with comparative evaluation of contemporary economic policies and global sustainability reports. The findings indicate that Maqasid al-Shari‘a naturally aligns with SDG principles through shared values such as preservation of life, intellect, wealth, lineage, and faith, forming a moral foundation for sustainable economic governance. The proposed framework demonstrates that integrating SDGs into Islamic legal thought can strengthen policy legitimacy, bridge ethical and developmental paradigms, and foster a holistic model for modern Islamic economic law.

Environmental, Social, and Governance (ESG) Criteria in Sharia-Compliant Stock Screening: A Comparative Study of Global Islamic Indices

Daniyar Satybaldy, Azamat Nazarov, Henrik Johansen, Aryo Prakoso — Mon, 15 Dec 2025 00:00:00 +0700

The convergence of Islamic finance and sustainable investing presents a significant area of interest, driven by shared ethical principles. However, the extent to which Environmental, Social, and Governance (ESG) criteria are formally integrated into sharia-compliant stock screening remains unclear across global indices. This study aims to comparatively analyze the methodologies of leading global Islamic stock indices to determine the scope and nature of ESG integration within their sharia screening frameworks. A qualitative comparative analysis was conducted on the methodology documents of major indices, including MSCI, FTSE, S&P, and Dow Jones Islamic Markets. The findings reveal significant heterogeneity. While all indices inherently cover certain social and governance aspects through traditional sharia screening (e.g., excluding sin stocks, debt limits), explicit and comprehensive ESG frameworks are not uniformly applied. Environmental criteria, in particular, are often not systematically integrated. The study concludes that while a natural alignment between sharia principles and ESG values exists, the formal integration of ESG criteria into global Islamic indices is still nascent and inconsistent. This highlights an opportunity to develop a more holistic screening framework that explicitly combines both ethical paradigms, enhancing the appeal of Islamic finance to sustainable investors.

Towards a Universal Framework for Sharia Economic Law in Global Research Zones: Theoretical Insights from Antarctica Governance Models

Isabel López, Francisco López, Ratu Baurake, Moana Tarema — Fri, 19 Dec 2025 00:00:00 +0700

The pursuit of a universal framework for Sharia economic law faces complex jurisdictional challenges in transnational and extraterritorial contexts. Antarctica, governed under the Antarctic Treaty System as a demilitarized and non-sovereign research zone, presents a unique legal landscape to explore how Islamic economic principles might operate in legally pluralistic, cooperative environments. This study examines the theoretical viability of implementing Sharia economic law within global research zones, using Antarctica as a conceptual testbed for non-territorial legal harmonization. The research applies a comparative legal methodology, synthesizing principles of international law, Sharia economic jurisprudence (fiqh muamalah), and environmental governance. Key findings highlight shared values between Sharia law and Antarctic governance, including non-exploitative resource management, communal benefit, and equitable stewardship. The absence of territorial sovereignty in Antarctica provides a neutral platform to theorize models of ethical finance and contract law that transcend nation-state limitations. The study concludes that Antarctica’s cooperative governance structure offers valuable theoretical insights for developing a universal, ethically grounded framework for Sharia economic law in transnational zones. This research contributes to debates on global legal pluralism, ethics in frontier economies, and the adaptability of Islamic law in novel legal environments.

Islamic Microfinance for Marginalized Communities in the Caribbean: A Case Study from Trinidad and Tobago

Lydia James, Nadia Williams, Michel Sylvain — Thu, 25 Dec 2025 00:00:00 +0700

Islamic microfinance offers an alternative, ethical approach to financial inclusion, especially for marginalized populations traditionally excluded from conventional banking systems. In the Caribbean context, where economic disparities persist and Muslim minorities face systemic challenges, the potential for Islamic microfinance remains underexplored. This study investigates the role of Islamic microfinance in empowering marginalized Muslim and non-Muslim communities in Trinidad and Tobago. The research employs a qualitative case study approach, combining semi-structured interviews with microfinance practitioners, community leaders, and beneficiaries across three local institutions offering Shariah-compliant financial services. Findings reveal that Islamic microfinance models—particularly those based on qard al-hasan (benevolent loans) and murabaha (cost-plus financing)—are perceived as more culturally inclusive, trust-based, and ethically appealing than their conventional counterparts. However, institutional limitations, lack of regulatory clarity, and insufficient awareness among beneficiaries restrict broader scalability. The study concludes that Islamic microfinance, when locally adapted and supported by policy and education, holds significant promise for advancing socio-economic empowerment in Caribbean plural societies. This case contributes to the growing discourse on Islamic social finance in non-Muslim-majority regions and highlights its relevance in fostering inclusive development models.

The Legality of Cryptocurrency (Aset Kripto) as a Waqf Asset: A Contemporary Islamic Law Analysi

Hubbul Wathan, Aisha Al-Suwaidi, Miriam Hofer — Mon, 08 Dec 2025 00:00:00 +0700

The rapid growth of digital finance has introduced cryptocurrency as a novel asset class, raising profound legal and ethical questions within the framework of Islamic law. The emergence of crypto-based endowments (waqf) has sparked debates among scholars concerning the legitimacy, permanence, and Shariah compliance of digital assets as charitable instruments. This study aims to examine the legality of cryptocurrency as a potential waqf asset by exploring its compatibility with classical jurisprudential principles and contemporary Islamic financial regulations. A qualitative-deductive methodology was employed, combining doctrinal analysis of fiqh al-mu??mal?t (Islamic commercial law) with comparative evaluation of modern fatwas and regulatory policies issued by national Shariah authorities. The findings reveal that while cryptocurrencies possess economic value (m?l) and transferability, their volatility and speculative nature pose significant challenges to fulfilling the waqf requirement of asset stability and perpetuity (istibq?’ al-?ayn). However, under certain governance mechanisms—such as tokenization backed by tangible or stable assets—cryptocurrency may be conditionally recognized as a legitimate waqf instrument. The study concludes that cryptocurrency’s inclusion in Islamic endowment frameworks is permissible only through rigorous regulatory oversight, ensuring transparency, value preservation, and adherence to Shariah objectives.

Digitalization of Zakat Management for Enhanced Transparency and Poverty Alleviation a Case Study of Baznas Indonesia

Syukrawati Syukrawati, Nadiah Ismail, Chinonso Onyema — Mon, 29 Dec 2025 00:00:00 +0700

Traditional Zakat management often faces a significant institutional trust deficit, hindering its potential for poverty alleviation. The digitalization of Zakat, as exemplified by Indonesia’s BAZNAS, presents a strategic solution, yet its empirical impact on transparency and social outcomes is under-evaluated. This research aims to empirically evaluate the impact of BAZNAS’s digitalization strategy on enhancing institutional transparency, rebuilding stakeholder trust, and improving the effectiveness of poverty alleviation programs. A mixed-methods explanatory sequential case study of BAZNAS was employed. The study analyzed longitudinal institutional data (2018-2024), structured surveys (n=1000 muzakki and mustahik), and 55 semi-structured stakeholder interviews. Findings reveal a profound positive impact: Zakat collection increased by 153.1% and fund distribution time decreased by 72.3%. ‘Perceived Transparency’ (? = .55, p < .001) was confirmed as the strongest predictor of ‘Institutional Trust’. A statistically significant reduction in mustahik poverty scores was also observed (p < .001). However, a critical ‘Digital Access Gap’ affecting 22% of recipients was identified. Digitalization is empirically validated as a powerful tool for resolving the institutional trust deficit and enhancing Zakat’s effectiveness in poverty reduction. This success is, however, contingent upon developing hybrid strategies to address the digital divide and ensure inclusivity.