Abstract
The global financial landscape is increasingly embracing Sharia-compliant financial products, driven by growing demand from Muslim-majority markets and a rising preference for ethical investments worldwide. However, integrating these products into conventional financial systems remains challenging due to strict adherence to Islamic principles, such as the prohibition of riba (interest) and gharar (excessive uncertainty). This review explores innovative approaches to structuring Sharia-compliant financial products to enhance their competitiveness in global markets. Key innovations include leveraging fintech solutions such as blockchain-based smart contracts for automated compliance, and AI-driven platforms to ensure real-time adherence to Sharia principles. The study also highlights the development of hybrid financial instruments that combine traditional Islamic financing methods, like Sukuk and Musharakah, with modern frameworks such as Environmental, Social, and Governance (ESG) criteria to attract socially responsible investors. Additionally, the emergence of Green Sukuk demonstrates the potential of Islamic finance to align with global sustainability goals, opening new avenues for ethical investments. Case studies of successful initiatives in regions like Southeast Asia and the Middle East showcase the potential of digital platforms and crowdfunding models in democratizing access to Sharia-compliant products. By adopting digital solutions, building strategic partnerships, and enhancing regulatory frameworks, Islamic financial institutions can expand their reach beyond traditional markets. The review concludes that innovative approaches are essential for the continued growth of Sharia-compliant finance, enabling it to play a critical role in promoting sustainable economic development globally while maintaining its foundational ethical principles.
Published Version
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