Integration of Islamic Economics with the Real Sector: A Systematic Literature Review (SLR) 2020–2025

Mohamad Ali; Muammar Zulfiqri

doi:10.69900/ag.v6i3.592

Authors

Mohamad Ali Universitas Islam Depok, Jawa Barat, Indonesia
Muammar Zulfiqri Universitas Islam Depok, Jawa Barat, Indonesia

DOI:

https://doi.org/10.69900/ag.v6i3.592

Keywords:

Islamic Economics, Real Sector, Systematic Literature Review

Abstract

This study aims to analyze the factors hindering the integration of Islamic economics with the real sector and to identify mechanisms that can strengthen their linkage. The method employed is a Systematic Literature Review (SLR) following the PRISMA 2020 guidelines, analyzing 47 articles from Scopus and Web of Science-indexed international journals published between 2020 and 2025. The findings identify three main clusters of barriers: institutional barriers within Islamic financial institutions characterized by the dominance of murabahah financing at 60 percent and minimal equity-based instruments; barriers at the real sector level including low Islamic financial literacy averaging 28–34 percent and disproportionate collateral requirements; and macro-structural barriers stemming from suboptimal regulatory frameworks and persistent asymmetric information problems. The study also finds that Islamic fintech holds transformative potential yet its penetration remains below 12 percent, while productive ZISWAF instruments have been proven to increase beneficiary income by up to 47 percent but have not yet reached optimal scale. Cross-country comparative analysis reveals that successful integration is determined by an integrated enabling ecosystem encompassing regulation, institutional innovation, literacy, and digital infrastructure. This study concludes that the required solutions are multi-level and multi-stakeholder in nature, rooted in the maqashid syariah framework

References

Aini, Fauqah Nuri. “Blockchain as a Transparency Solution in Islamic Finance.”Socius: Journal of Social Sciences Research 02, no. June (2025): 494–98.

Ainiah, Pocut. "Challenges and Opportunities for the Digitalization of Islamic Financial Institutions in the Era of the Industrial Revolution 4.0."Journal of Innovative and Creativity 5, no. 3 (2025): 28027–32. DOI: https://doi.org/10.31004/joecy.v5i3.4254

Alam, M K, F T Islam, and M K Runy. “Why Does Islamic Banking Syariah Supervisory Board Attributes Matter in Financial Performance?” Asian Journal of Accounting Research 8, no. 1 (2023): 113–27. https://doi.org/10.1108/AJAR-07-2021-0116. DOI: https://doi.org/10.1108/AJAR-07-2021-0116

Ascarya, A, and D Humanity. “Revisiting the Dominance of Murabahah Financing in Indonesia’s Islamic Banks.” Journal of Islamic Monetary Economics and Finance 7, no. 2 (2021): 245–74. https://doi.org/10.21098/jimf.v7i2.1287.

A.Yasin, Moh Al Ayat, and Abdur Rahman Adi Saputera. “Zakat Education in the Context of Unlicensed Gold Mining: An Islamic Law and Islamic Education Perspective in North Molosipat under Law Number 3 of 2020.” Ar-Rayyan: Journal Of Islamic Education 3, no. 2 (2026): 120–44. https://doi.org/10.67899/ar.v3i2.435. DOI: https://doi.org/10.67899/ar.v3i2.435

Ahyai, Kana Nur, Muhammad Reza, Nur Hasanah, Rizka Aulia Ramadhan, Roja Naurah, and Rahmad Hulbat. “Analysis of the Learning Design Concept of Islamic Religious Education from the Perspective of Constructivist Theory.” At-Ta’lim: Journal of Islamic Studies 3, no. 1 (2026): 1–25. https://doi.org/10.67899/at-talim.v3i1.832. DOI: https://doi.org/10.67899/at-talim.v3i1.832

Bank Negara Malaysia. “Financial Stability Review: Second Half 2022.” Bank Negara Malaysia, 2023. https://www.bnm.gov.my/financial-stability-review.

Chapra, M U.The Future of Economics: An Islamic Perspective. 2nd ed. The Islamic Foundation, 2021.

Fitri, Yuda Septia, Widiawati, and Mila Badriyah. “Revitalizing Productive Waqf for MSME Financing: Synergy of Sharia Economics and Sustainable Financial Inclusion.” InNational Seminar on Islamic Economics and Business 2025 Gunung Djati Conference Series, 56:1318–26. Gunung Djati Conference Series, 2025.

Hassan, M K, M R Rabbani, and M A M Ali. “Challenges for the Islamic Finance and Banking in Post COVID Era and the Role of Fintech.” Journal of Economic Cooperation and Development 43, no. 1 (2022): 93–116.

Ibrahim, M H, and S A R Rizvi. “Financial Intermediation and Economic Growth: A Study of Economies in the OIC.” Emerging Markets Finance and Trade 58, no. 4 (2022): 1076–91. https://doi.org/10.1080/1540496X.2021.1874390.

Jimly, Abdullah, Hasanal Adhim, and Mugiyati. “Meta-Analysis of Waqf Bank Management: Strategies in Addressing Contemporary Issues.”Muqaddimah: Journal of Islamic Studies 10, no. 2 (2025): 308–26. DOI: https://doi.org/10.14421/mjsi.v10i2.4556

Landis, John R, and Gary G Koch. “The Measurement of Observer Agreement for Categorical Data.” Biometrics 33, no. 1 (1977): 159–74. https://doi.org/10.2307/2529310. DOI: https://doi.org/10.2307/2529310

Mohd Amin, S, S A Yusof, and F Abd Rahim. “Determinants of Islamic Banking Adoption among SMEs in Malaysia.”Journal of Islamic Finance 11, no. 1 (2022): 31–45. https://doi.org/10.31436/jif.v11i1.574.

Muneeza, A, N A Arshad, and A T Arifin. “The Application of Blockchain Technology in Crowdfunding: Towards Financial Inclusion via Technology.” International Journal of Management and Applied Research 9, no. 2 (2022): 79–91. https://doi.org/10.18646/2056.92.22-006. DOI: https://doi.org/10.18646/2056.92.22-006

Muneeza, A, R Hassan, and S A Al-Shami. “Integrating Islamic Social Finance Instruments with the Real Sector: A Systematic Review.” Journal of King Abdulaziz University: Islamic Economics 36, no. 1 (2023): 45–68. https://doi.org/10.4197/Islec.36-1.3. DOI: https://doi.org/10.4197/Islec.36-1.3

Nurhidayah, Nurhidayah, and Fitri Handayani. “Culture and the Diversity of the Spread of Islam in Indonesia and Brunei Darussalam from a Philosophical Perspective.” Integrated Education Journal 2, no. 2 (2025): 33–44. https://doi.org/10.67899/iej.v2i2.196. DOI: https://doi.org/10.67899/iej.v2i2.196

Nursalam, A, and D Adriansyah. “Islamic Banking and the Agricultural Sector: Exploring Financing Constraints in Indonesia.” Bulletin of Monetary Economics and Banking 26, no. 1 (2023): 55–78. https://doi.org/10.21098/bemp.v26i1.2176.

Page, Matthew J, Joanne E McKenzie, Patrick M Bossuyt, Isabelle Boutron, Tammy C Hoffmann, Cynthia D Mulrow, Larissa Shamseer, et al. “The PRISMA 2020 Statement: An Updated Guideline for Reporting Systematic Reviews.” BMJ372 (2021): n71. https://doi.org/10.1136/bmj.n71. DOI: https://doi.org/10.1136/bmj.n71

Popay, J, H Roberts, A Sowden, M Petticrew, L Arai, M Rodgers, N Britten, K Roen, and S Duffy. “Guidance on the Conduct of Narrative Synthesis in Systematic Reviews.” Lancaster University, 2021. https://doi.org/10.13140/2.1.1018.4643.

Rabbani, M R, M A M Ali, H U Rahiman, M Atif, Z Zulfikar, and Y Naseem. “The Response of Islamic Financial Service to the COVID-19 Pandemic: The Open Social Innovation of the Financial System.” Journal of Open Innovation: Technology, Market, and Complexity 7, no. 2 (2021): 85. https://doi.org/10.3390/joitmc7020085. DOI: https://doi.org/10.3390/joitmc7010085

Siddaway, Andy P, Alex M Wood, and Larry V Hedges. “How to Do a Systematic Review: A Best Practice Guide for Conducting and Reporting Narrative Reviews, Meta-Analyses, and Meta-Syntheses.” Annual Review of Psychology 70 (2019): 747–70. https://doi.org/10.1146/annurev-psych-010418-102803. DOI: https://doi.org/10.1146/annurev-psych-010418-102803

Simamora, Anny May Saroh, Abdul Nasser Hasibuan, and Adanan Murroh. “Analysis of the Impact of Zakat on the Welfare of Mustahik BAZNAS South Tapanuli.”JISFIM: Journal of Islamic Social Finance Management 4, no. 1 (2023): 23–33.

Wahyudi, I, and A Sakti. “Structural Determinants of Islamic Bank Financing and Its Connection to the Real Sector.” International Journal of Islamic and Middle Eastern Finance and Management 16, no. 3 (2023): 512–31. https://doi.org/10.1108/IMEFM-04-2022-0167.

Zulkhibri, M, and R Ghazal. “The Impacts of Governance and Institutional Quality on Financial Inclusion in Developing Countries.” Journal of Financial Regulation and Compliance 30, no. 1 (2022): 82–100. https://doi.org/10.1108/JFRC-01-2021-0004.