Shariah-Based Ethical Frameworks and Their Role in Shap-ing Islamic Finance in Asia: A Systematic Literature Review

Nurul Syafiqah Azman; Affendy Abu Hassim; Said Nasser Al-Amrani; Nasib Nasib; Muhammad Fathoni

doi:10.64276/jofibi.v2i1.87

Authors

Nurul Syafiqah Azman Universiti Kuala Lumpur
Affendy Abu Hassim Universiti Kuala Lumpur
Said Nasser Al-Amrani Sohar University
Nasib Nasib Institut Bisnis Informasi Teknologi dan Bisnis
Muhammad Fathoni Politeknik Ganesha Medan

DOI:

https://doi.org/10.64276/jofibi.v2i1.87

Keywords:

Islamic Finance, Local Ethics, Shariah Compliance, Global Economy, Ethical Governance, Financial Integration

Abstract

The purpose of this research is to examine the role played by regional ethical codes in Islamic banking's development, adoption and the integration of this financial system at the international level. A comprehensive review of the last 6 years' research in the field is given, covering 86 academic papers from 2020 to 2025. The PRISMA methodology is applied in order to identify, appraise and merge the findings from the studies in areas like ethical and cultural values, Shariah compliance, governance, and socio-economic goals. In fact, research shows that regional ethical frameworks are crucial in ensuring that Islamic financial services are truly ethical and in addition are a key factor in differentiating Islamic financial services from conventional ones within the global marketplace. In the integration of Islamic finance with global norms there are a number of challenges, including the integration of Islamic finance with community-based ethics, the need to harmonise Islamic law with transnational financial dealings and the impact of technological advancements such as the development of financial services companies (fintech). The key theme in this study is the integration of Islamic financial practices with the values of their community, the strategies employed by financial institutions to reconcile local Shariah law with international finance systems, and the role of ethical governance in establishing trust and promoting economic growth. In light of these implications, it is essential that regulatory agencies, industry leaders and government officials work towards ensuring international business practices align with local standards of ethics. Further research is required in such areas as the implications of sustainable finance for conventional financial structures, digitalisation and its impact on the role of the business community and the finance industry, and in cross border issues of ethics.

References

Abdul Jalil, M. (2025). Comparative Models And Methodologies For The Introduction Of Islamic Finance In Non-Islamic Economies: A Systematic Analysis Of Global Practices. Iqtisodiy Tara-qqiyot va Tahlil, 3(5), 14–26. https://doi.org/10.60078/2992-877X-2025-vol3-iss5-pp14-26

Abdul Razak, A., Author, C., Professor, A., & Mhd Sarif, S. (2022). Islamic Leadership For Sustaina-bility: A Systematic Literature Review Using Prisma. In Online Journal Of Islamic Management And Finance (Vol. 2, Issue 2).

Abdullah, R., Marzuki, S. N., Karliena, Y., & D, A. Z. (2025). Critical Analysis of the Concept of Usury in Islamic Economics and its Implications for Islamic Finance. Journal of Noesantara Islam-ic Studies, 2(2), 63–72. https://doi.org/10.70177/jnis.v2i2.1847

Abubakar Muhammad, A., Ibrahim, A., Yakub, A. A., Khan, H., & Hamzah, N. (2025). The Role of Islamic Finance in Promoting Economic Justice and Financial Inclusion among Marginalised Communities. Suhuf, 37(1). https://doi.org/10.23917/suhuf.v37i1.10167

Ardern, C. L., Büttner, F., Andrade, R., Weir, A., Ashe, M. C., Holden, S., Impellizzeri, F. M., De-lahunt, E., Dijkstra, H. P., Mathieson, S., Rathleff, M. S., Reurink, G., Sherrington, C., Stama-takis, E., Vicenzino, B., Whittaker, J. L., Wright, A. A., Clarke, M., Moher, D., … Winters, M. (2022). Implementing the 27 PRISMA 2020 Statement items for systematic reviews in the sport and exercise medicine, musculoskeletal rehabilitation and sports science fields: the PERSiST (implementing Prisma in Exercise, Rehabilitation, Sport medicine and SporTs science) guidance. British Journal of Sports Medicine, 56(4), 175–195. https://doi.org/10.1136/bjsports-2021-103987

Azis Ibrahim, A., & Alenizi, A. (2024). Finance: A Conceptual Framework For Advancing Sustainable Development Among Early-Stage Enterprises. Islamic Finance and Business Review, 18(1), 2024.

Dey, R., Kassim, S., Mahajan, R. A., Avhankar, M., Dharwadkar, R., Kumbhar, V., & Shendage, J. (2024). The Application of Predictive Learning in Islamic Finance. In Journal of Information Sys-tems Engineering and Management (Vol. 2025, Issue 26s). https://www.jisem-journal.com/

Fathurrahman, A. (2025). Rediscovering Local Wisdom: A Cultural Turn in Islamic Economic Educa-tion. Journal of Economics Research and Social Sciences, 9(2), 254–263. https://doi.org/10.18196/jerss.v9i2.27587

Franciosi, L. M. (2025). Islamic Finance and Sustainable Development: Key Ethical Features and Pro-active Initiatives Promoting Financial Inclusion. European Journal of Islamic Finance, 2421–2172. https://doi.org/10.13135/2421-2172/11175

Haile, M. A., M.K., J., & Mulugeta, W. (2025). Does regulatory convergence shape banking resilience in Africa? Heliyon, 11(1). https://doi.org/10.1016/j.heliyon.2024.e41347

Hassim, A. A., Azman, N. S., & Shamsudin, M. F. (2025). The global business environment and the role of cultural intelligence: systematic literature review. Journal of Marketing Theory and Practice, 1–22. https://doi.org/10.1080/10696679.2025.2563373

Hossain, M. A., Rosman, R., Jahan, N., Afroz, S., & Afroza, K. (2025). A Systematic Literature Re-view of Risk Management in the Islamic Banking System: Research Agenda and Future Direc-tions. International Journal of Research and Innovation in Social Science, IX(III), 1193–1209. https://doi.org/10.47772/ijriss.2025.90300093

Ibrahim, A. (2024). Global Challenges, Local Solutions: The Role of Islamic Financial Systems. Share: Jurnal Ekonomi Dan Keuangan Islam, 13(2), vi–x. https://doi.org/10.22373/share.v13i2.27560

Jaradat, H., & Oudat, M. S. (2025). Enhancing clarity and transparency in Islamic financial practices: the role of regulatory influence. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/JFRA-07-2024-0479

Judijanto, L., & Mu, H. (2024). Islamic Law Review of Sharia Cooperative Practices in Indonesia Arti-cle Info ABSTRACT. In West Science Islamic Studies (Vol. 2, Issue 04).

Khan, M. F., Muhammad, D., & Aarifi, I. (2025). Running Musharakah: A Comprehensive Analysis Of A Versatile Islamic Financing Tool. Journal Quarterly Research Journal Www. al-Aasar.Com, 2(2).

Liestyowati. (2024). Islamic Ethics in Business and Finance: Implication for Corporate Governance and Responsibility Etika Islam dalam Bisnis dan Keuangan: Implikasinya terhadap Tata Kelola dan Tanggung Jawab Perusahaan. In Accounting Studies and Tax Journal (COUNT) (Vol. 1, Issue 3). https://journal.ppipbr.com/index.php/count/index

Maas, S., Hanif, H., & Ahmad, H. (2024). Exploring the integration of mato-based profit-sharing ac-counting in cooperative and sharia-compliant frameworks: A systematic literature review. Seriat Ekonomisi, 1(2), 34–52. https://doi.org/10.35335/kmqy6m60

Mansyur, A., Asnawi, N., Khasanah, U., & Shodiq, J. (2025). The Evolving Relationship Between Is-lamic Economic Theory And Fiqh Al-Muamalat In Modern Financial Systems: A Comprehen-sive Analysis. In Jurnal Kajian Islam Interdisipliner (Vol. 5, Issue 1). http://riset.unisma.ac.id/index.php/natiq/article/view/22335DOI:http://dx.doi.org/an-natiq.v5i1.22335

Mehrotra, M. S., Sharma, S. D., & Jaiswal, G. (2018). A Systematic Review of Transformational leadership upon vital organizational aspects: An Imitation of Meta Analysis methodologies of PRISMA and Meta Es-sentials. https://www.researchgate.net/publication/356252421

Mokodenseho, S., Siregar, R., Muslim, S., & Hasibuan, K. (2024). Analysis of the Influence of Fiqh and Maqasid al-Syariah in the Formation of Islamic Legal Policy in Indonesia Article Info AB-STRACT. In West Science Islamic Studies (Vol. 2, Issue 01).

Murad, J., Borahan, M. A., Sa’id, M. I., & Yahya, N. (2024a). Untangling The Knots: Navigating The Complexities Of Shari’ah Compliance And Governance In Islamic Finance. International Journal of Law, Government and Communication, 9(37), 519–530. https://doi.org/10.35631/IJLGC.937039

Nyoman Budiono, I., Abu Bakar, A., Haddade, H., Daily, S., & Husain, H. (2024). Integrating Local Culture to Work Ethics: A Holistic Approach to Mitigating Problematic Financing in Islamic Banks. 6. https://doi.org/10.35905/banco

Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., Shamseer, L., Tetzlaff, J. M., Akl, E. A., Brennan, S. E., Chou, R., Glanville, J., Grimshaw, J. M., Hrób-jartsson, A., Lalu, M. M., Li, T., Loder, E. W., Mayo-Wilson, E., McDonald, S., … Moher, D. (2021). The PRISMA 2020 statement: An updated guideline for reporting systematic reviews. In PLoS Medicine (Vol. 18, Issue 3). Public Library of Science. https://doi.org/10.1371/JOURNAL.PMED.1003583

Paul, J., Lim, W. M., O’Cass, A., Hao, A. W., & Bresciani, S. (2021). Scientific procedures and ration-ales for systematic literature reviews (SPAR-4-SLR). International Journal of Consumer Studies. https://doi.org/10.1111/ijcs.12695

Rahayu, A., Sulastri, S., Wibowo, L. A., & Gaffar, V. (2022). Effect of Technology Readiness Towards Ac-ceptance Technology in Using Information System.

Rangkuti, M. Y. (2023). Toward a Holistic Framework of Islamic Business Ethics: Insights from Leadership, Halal Practices, and Finance in a Digital Age. Sinergi International Journal of Islamic Studies, 3(3), 114–127. https://journal.sinergi.or.id/ijis

Regona, M., Yigitcanlar, T., Xia, B., & Li, R. Y. M. (2022). Opportunities and Adoption Challenges of AI in the Construction Industry: A PRISMA Review. Journal of Open Innovation: Technology, Mar-ket, and Complexity, 8(1). https://doi.org/10.3390/joitmc8010045

Sefrita Yandri, M., & Alfian, A. (2024). Beyond Tradition: Transforming Micro and Medium Finance through Islamic Financial Innovations. Al Urwah : Sharia Economics Journal, 2(02), 71–82. https://doi.org/10.61536/alurwah.v2i02.86

Shalhoob, H. (2025). The role of AI in enhancing shariah compliance: Efficiency and transparency in Islamic finance. Journal of Infrastructure, Policy and Development, 9(1), 11239. https://doi.org/10.24294/jipd11239

Siddaway, A. P., Wood, A. M., & Hedges, L. V. (2019). How to Do a Systematic Review: A Best Practice Guide for Conducting and Reporting Narrative Reviews, Meta-Analyses, and Meta-Syntheses. In Annual Review of Psychology (Vol. 70, pp. 747–770). Annual Reviews Inc. https://doi.org/10.1146/annurev-psych-010418-102803

Siham, R. (2025). Economic Researcher Review Leveraging Islamic Finance Solutions to Enhance Institutional Eco-nomic Value: Evidence from Algeria’s Banking Sector Laboratory of Financial Market Management by the Application of Mathematics and Computer Science. 13(1).

Suhardi. (2025). Mapping islamic financial inclusion literature: Trends, key issues, and future research directions. In Indonesia Accounting Research Journal (Vol. 12, Issue 4).

Sukamto, M. S., Norizan, F. A. M., Mahmood, S. N., Fatima, S., & Hashmi, A. (2025). AI in Islamic finance: Global trends, ethical implications, and bibliometric insights. Review of Islamic Social Fi-nance and Entrepreneurship, 2025(1), 71. https://doi.org/10.20885/RISFE