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Purpose

To synthesize Islamic finance scholarship (2000–2023) and examine how technological innovation interacts with regulatory harmonization, mapping dominant themes, regional trajectories and future research priorities.

Design/methodology/approach

A preferred reporting items for systematic reviews and meta-analyses-guided systematic review identified 616 records and retained 95 studies after quality screening. The authors applied latent dirichlet allocation topic modeling (k = 5; coherence-optimized) and triangulated with bibliometrics (co-citation, author networks, keyword co-occurrence; interrater κ ≈ 0.85). Qualitative triangulation included ten expert interviews and five institutional case studies to validate and interpret quantitative patterns.

Findings

Five interlinked themes structure the field: (1) Shariah-compliant products, (2) risk and governance, (3) Sukuk/green Sukuk, (4) regulation and standardization and (5) fintech/digital Shariah/social finance. The literature evolves across four stages – foundation, expansion, regulatory consolidation and innovation/integration – culminating in digitalization and environmental, social and governance (ESG) convergence. Regional analysis highlights Malaysia’s innovation-led regime, Gulf Cooperation Council’s conservative yet modernizing architectures and Indonesia’s scale potential with literacy and inclusion gaps. Persistent challenges include cross-jurisdictional standardization, risk modeling for PLS contracts and rigorous impact measurement for ESG-aligned instruments.

Research limitations/implications

The sample is limited to peer-reviewed literature (2000–2023) with English-language emphasis; database coverage and methodological heterogeneity may bias topic prevalence. Future work should widen non-English sources, replicate with alternative models (e.g. BERTopic) and couple macroreviews with microdata on product performance and inclusion outcomes.

Practical implications

Guidance for regulators on mutual recognition and Shariah governance harmonization; for institutions on embedding digital Shariah controls, cybersecurity and AI assurance; and for issuers on robust KPI/impact frameworks for green Sukuk.

Social implications

Digital Islamic finance can advance financial inclusion and sustainable development goals if paired with credible impact verification, consumer protection and equitable data-use practices.

Originality/value

Combines a systematic review with machine-learning topic discovery, bibliometric validation and qualitative evidence to deliver an integrated map of Islamic finance’s evolution, a conceptual ecosystem framework and a concrete agenda linking fintech, governance and sustainability.

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