Islamic Finance for Sustainable Development: A Mixed-Methods Systematic Review and Bibliometric Analysis of SDG Alignment

Islamic Finance for Sustainable Development: A Mixed-Methods Systematic Review and Bibliometric Analysis of SDG Alignment

Hanani Farhah Harun* Nurshazwanie Rahmat

Faculty of Computer Science and Mathematics, Universiti Malaysia Terengganu, Kuala Terengganu 21030, Malaysia

Corresponding Author Email: 
hanani.harun@umt.edu.my
Page: 
99-107
|
DOI: 
https://doi.org/10.18280/ijsdp.200111
Received: 
11 August 2024
|
Revised: 
11 October 2024
|
Accepted: 
5 November 2024
|
Available online: 
24 January 2025
| Citation

© 2025 The authors. This article is published by IIETA and is licensed under the CC BY 4.0 license (http://creativecommons.org/licenses/by/4.0/).

OPEN ACCESS

Abstract: 

The intersection of Islamic finance and sustainable development presents a frontier of opportunity in addressing global challenges. This study offers a comprehensive, mixed-methods investigation into the role of Islamic finance in achieving the United Nations Sustainable Development Goals (SDGs). Employing a novel combination of systematic literature review following PRISMA guidelines, Preferred Systematic Approach for Literature Selection and Ranking (PSALSAR) methodology, and advanced bibliometric analysis, we provide a multilayered examination of this rapidly evolving field. Our systematic review covers 33 high-quality studies and identifies seven key factors contributing to SDG achievement through Islamic finance. The dominant factor, environmental sustainability, appears in 51.52% of the reviewed studies. The PSALSAR ranking reflects a robust distribution of evidence, with 12 studies (36.36%) classified as Tier 1 (Highly Relevant), 15 studies (45.45%) as Tier 2 (Moderately Relevant), and 6 studies (18.18%) as Tier 3 (Somewhat Relevant). Bibliometric analysis of 156 publications reveals significant temporal trends, geographical concentrations, and evolving research networks. Key findings include: (1) a marked increase in research output post-2020, indicating growing recognition of Islamic finance's potential in sustainable development; (2) strong interconnections between Islamic finance principles and environmental, social, and governance (ESG) criteria; (3) geographical concentration of research in Indonesia, South Asia, China and Nigeria, highlighting opportunities for broader global engagement; and (4) emerging focus areas such as green sukuk and financial technology integration. This study contributes to the literature by offering the first comprehensive mixed-methods analysis in this domain, providing a refined understanding of the current research landscape and identifying critical gaps.

Keywords: 

PRISMA protocol, PSALSAR, bibliometric analysis, systematic review, Islamic finance, SDGs

1. Introduction

The United Nations' SDGs, adopted in 2015, represent a universal call to action to end poverty, protect the planet, and ensure prosperity for all by 2030 [1]. However, achieving these ambitious goals requires innovative financing solutions and the mobilization of significant resources. In this context, Islamic finance has emerged as a potential catalyst for sustainable development, offering unique principles and instruments that align with the SDGs [2].

The global Islamic finance industry, valued at approximately USD 4.28 trillion in 2023, reflecting significant growth from its valuation of USD 2.2 trillion in 2021 [3], presents a substantial opportunity to bridge the SDG financing gap. Islamic finance, rooted in Shariah principles, emphasizes ethical, social, and environmentally responsible investments, making it inherently compatible with the objectives of sustainable development [4]. However, despite this apparent synergy, the actual contribution of Islamic finance to achieving the SDGs remains understudied and underutilized [5].

The challenges in leveraging Islamic finance for sustainable development are multifaceted. Georgeson and Maslin [6] highlight the need for improved monitoring, implementation, and finance frameworks to ensure transparency and accountability in development efforts. Moreover, the persistent issue of extreme poverty affecting over 700 million people globally underscores the urgency of exploring alternative financial mechanisms to support sustainable development [7].

While several studies have explored the potential of Islamic finance in supporting SDGs [2, 8-13]; there is a notable lack of comprehensive, systematic reviews that synthesize existing knowledge and identify key contributing factors. This gap in the literature hinders our understanding of how Islamic finance can be effectively harnessed to accelerate progress towards the SDGs.

To address this critical knowledge gap, this study aims to systematically review and synthesize the existing literature on the role of Islamic finance in achieving the SDGs. Specifically, we seek to identify and analyze the key contributing factors of Islamic finance in realizing sustainable development goals. By employing a rigorous mixed-methods approach, combining a systematic literature review following the PRISMA protocol with bibliometric analysis, we aim to provide a comprehensive and nuanced understanding of this important topic.

Our methodology encompasses a systematic search of Scopus databases, focusing on peer-reviewed articles published between 2015 and 2024. We employ strict inclusion criteria and quality assessment tools to ensure the reliability of our findings. Additionally, bibliometric analysis using VOSviewer software will provide insights into publication trends, co-authorship networks, and keyword co-occurrences, offering a holistic view of the research landscape.

By synthesizing findings from diverse studies using thematic analysis and employing both qualitative and quantitative analytical techniques, this research aims to contribute significantly to the existing body of knowledge. Our findings will not only advance academic understanding but also provide valuable insights for policymakers, financial institutions, and development practitioners seeking to leverage Islamic finance for sustainable development.

In the following sections, we will detail our methodology, present our findings, and discuss their implications for theory and practice. Through this comprehensive analysis, we hope to shed light on the untapped potential of Islamic finance in achieving the SDGs and pave the way for more effective integration of Islamic financial principles into sustainable development strategies.

2. Literature Review

The intersection of Islamic finance and SDGs has emerged as a significant area of research, with studies exploring various facets of this relationship. However, a critical review of the existing literature reveals both valuable insights and notable gaps in the current body of knowledge.

2.1 Methodological approaches and rigor

A striking observation is the limited use of rigorous systematic review methodologies in this field. Harahap et al. [9] stand out for employing PRISMA to examine the nexus of Islamic finance, Maqasid Shariah, and SDGs. Their findings emphasize the crucial role of government intervention in establishing Islamic laws and regulations to protect financial sector stakeholders. Similarly, Andespa et al. [14] utilized PRISMA for their review on Islamic branding and sustainable development of Islamic banks, covering literature from 2018-2023. While not directly related to Islamic finance, Lestari et al. [15] also employed PRISMA in their study of the Village Fund Program and SDGs in Indonesia, demonstrating the growing adoption of this methodology in sustainable development research.

2.2 Islamic finance as a catalyst for SDGs

Despite methodological variations, a consensus emerges regarding the potential of Islamic finance in advancing SDGs. Dirie et al. [2] provide a comprehensive framework, identifying five key avenues through which Islamic finance contributes to SDG attainment. This multifaceted approach is echoed in subsequent studies, with Santoso et al. [16] examining the perspectives of Islamic Financial Institutions (IFIs) in promoting sustainable development objectives.

Johan [12] explored the complementary nature of Sharia financing and green financing in promoting sustainable development in Indonesia, using a qualitative normative descriptive approach. This study highlights the growing interest in integrating Islamic finance principles with environmental sustainability goals.

Raimi et al. [17] conducted a comprehensive review of Islamic finance and the SDGs, emphasizing the alignment between Islamic financial principles and sustainable development objectives. The study highlights how Islamic financial instruments can contribute to poverty alleviation, financial inclusion, and environmental sustainability.

2.3 Specific Islamic finance mechanisms and SDGs

Several studies focus on specific Islamic finance mechanisms in achieving SDGs. Hamed [18] and Lanzara [19] highlight the potential of zakat, waqf, and infāq systems as alternatives to traditional charitable donations in bridging the SDG investment gap. Dembele and Bulut [8] further elaborate on these mechanisms, emphasizing their contributions to SDG achievement. Abdullah [20] explores the role of Islamic social finance in supporting the SDGs, particularly focusing on poverty alleviation and social welfare. The study emphasizes the potential of zakat and waqf in addressing income inequality and promoting sustainable economic growth.

2.4 Critical perspectives and broader implications

Some researchers have adopted a more critical stance. Georgeson and Maslin [6] emphasize the need for improved monitoring, implementation, and finance frameworks to ensure transparency and accountability in development efforts. This critical perspective is crucial, as it highlights potential pitfalls in the uncritical adoption of Islamic finance tools without adequate governance structures.

Streimikiene et al. [21] provide a broader perspective by validating the connection between SDG adoption and sustainable finance models across different contexts. Their findings suggest that the effectiveness of Islamic finance in supporting SDGs may be part of a larger trend linking sustainable development practices with robust financial systems.

2.5 Innovative applications and future directions

Recent studies have explored innovative applications of Islamic finance in addressing specific SDGs. Tok et al. [22] demonstrate how Islamic social finance instruments could address humanitarian issues like refugee protection while advancing the SDGs. Hossain [7] argues for the superiority of Islamic methods in poverty reduction, claiming they are more sustainable due to their value-oriented approach.

Shofawati [23] examine the potential of Islamic fintech in achieving SDGs, particularly in promoting financial inclusion and reducing poverty in Indonesia. Their study highlights the role of technology in expanding the reach and effectiveness of Islamic financial services.

2.6 Challenges and opportunities

Mohsin et al. [24] identify challenges in aligning Islamic finance with SDGs, including regulatory inconsistencies and lack of standardization across different jurisdictions. They propose a framework for better integration of Islamic finance principles with sustainable development objectives.

Ulfah et al. [25] investigate the role of Islamic green bonds (green sukuk) in financing sustainable infrastructure projects. Their study provides empirical evidence on the growing market for Sharia-compliant green finance instruments and their potential impact on achieving SDGs.

2.7 Synthesis and future research needs

The existing literature paints a picture of Islamic finance as a potentially powerful tool for achieving SDGs, with its principles aligning closely with sustainable development objectives. However, the field is characterized by a predominance of theoretical discussions and limited empirical studies. The lack of rigorous systematic reviews and quantitative analyses presents a significant opportunity for future research.

This review reveals a growing body of research exploring the relationship between Islamic finance and SDG achievement. However, there remains a need for more empirical studies using rigorous methodologies like PRISMA to provide stronger evidence of the impact and effectiveness of Islamic finance tools in supporting sustainable development. Future research should focus on quantifying the impact of Islamic finance mechanisms on specific SDG indicators, exploring cross-country comparisons, and investigating the long-term sustainability of Islamic finance-driven development initiatives.

3. Research Methodology and Protocols

This study employs a comprehensive mixed-methods approach, combining systematic literature review methodologies (PRISMA and PSALSAR) with bibliometric analysis to examine the role of Islamic finance in achieving SDGs. The methodology ensures a rigorous, transparent, and reproducible research process.

3.1 Systematic literature review

3.1.1 PRISMA protocol

We followed PRISMA guidelines [26] to ensure a rigorous and transparent methodology. The PRISMA protocol includes a 27-item checklist and a 4-phase flow diagram that guides the reporting of the abstract, introduction, methods, results, and discussion sections.

We conducted the literature search using the Scopus database, which provides extensive coverage of high-quality peer-reviewed research. The search string used is shown in Figure 1.

Figure 1. Database search string

This search was limited to articles and reviews published in English between 2015 and 2024, ensuring relevance to current trends and developments in the intersection of Islamic finance and sustainable development. We employed two tools to assess the quality of included studies - Mixed Methods Appraisal Tool (MMAT) and Critical Appraisal Skills Programme (CASP). MMAT was used to evaluate studies with mixed-methods designs by focusing on methodological appropriateness and rigor. Meanwhile, CASP guided the quality assessment of qualitative studies, ensuring that key elements like research design, methodology, and findings were rigorously reported.

The protocol is detailed in Table 1. A flowchart summarizing the PRISMA process is provided in Figure 2.

3.1.2 PSALSAR framework

The PSALSAR framework, originally developed for environmental science research [27] has been adapted for this study to provide a structured approach to our systematic review. The framework consists of six steps as shown in Table 2.

Table 1. PRISMA protocol phases with descriptions

Phase

Descriptions

Search strategy

Databases: Scopus

Search string: ("Islamic finance" OR "Islamic banking" OR "Shariah-compliant finance") AND ("Sustainable Development Goals" OR "SDGs" OR "sustainable development")

Time frame: 2015-2024

Language: English

Screening process

Initial screening of titles and abstracts by two independent reviewers

Full-text review of potentially eligible articles

Data extraction using a standardized, pilot-tested form

Inclusion and exclusion criteria

Inclusion: Primary focus on Islamic finance and SDGs; empirical studies, theoretical papers, or systematic reviews; peer-reviewed journal articles and high-quality grey literature

Exclusion: Studies not primarily focused on Islamic finance and SDGs; non-peer-reviewed articles; publications before 2015

Quality assessment

MMAT for quality assessment

CASP checklists for qualitative studies

Figure 2. PRISMA process

Table 2. Steps in PSALSAR framework with descriptions

Phase

Descriptions

Problem formulation

Research questions:

What are the key contributing factors of Islamic finance in realizing SDGs

How do these factors vary across different geographical and economic contexts

Search

As outlined in the PRISMA protocol, with the addition of backward and forward citation tracking

Appraisal

Critical evaluation using MMAT and CASP tools

Assessment of study relevance and methodological rigor

Synthesis

Data extraction template is based on the PRISMA checklist

Excel, Mendeley and VOSviewer software are employed to categorise data for further analysis

Development of a conceptual framework linking Islamic finance mechanisms to specific SDGs

Analysis

Data Analysis

Mixed-methods synthesis: Integration of quantitative and qualitative findings

Subgroup analysis based on geographical regions and economic development levels

Results and Discussion

Identified key contributing factors of Islamic finance in realizing SDGs

Discussed the factors across different geographical and economic context

Reasoning

Critical interpretation of findings in light of existing theories and practical implications

Identification of research gaps and future research directions

3.2 Bibliometric analysis

3.2.1 Data collection

The bibliometric analysis for this study was conducted using data sourced from the Scopus databases. These databases were chosen due to their comprehensive coverage and high-quality indexing of academic publications. The time frame for the data collection spans from 2015 to 2024, ensuring a recent and relevant dataset that captures the latest trends and developments in the field.

The document types included in the analysis are limited to articles and reviews, which are the primary sources of peer-reviewed, substantial scholarly contributions.

3.2.2 Analysis tools

For the comprehensive bibliometric analysis, VOSviewer software was employed. VOSviewer is a widely used tool for constructing and visualizing bibliometric networks. It is particularly effective in mapping and analyzing the relationships among various bibliometric elements such as authors, institutions, countries, and keywords. Its capabilities in handling large datasets and producing detailed visualizations make it an ideal choice for this study.

3.2.3 Metrics analyzed

a) Publication trends

The analysis of publication trends focused on the annual output of publications and their growth rate over the specified time frame. This metric helps in understanding the progression and increasing interest in the field. Additionally, the top journals, authors, and institutions contributing to the body of literature were identified, providing insights into the key players and sources of influential research in the domain.

b) Co-authorship networks

The co-authorship network analysis examined collaboration patterns at multiple levels, including individual authors, institutions, and countries. By analyzing these networks, the study aimed to uncover the collaborative dynamics and partnerships that drive research in the field. This metric is crucial for understanding the interconnectedness of researchers and institutions and how they contribute to the advancement of knowledge through joint efforts.

c) Keyword co-occurrence and topic modeling

To identify key themes and research trends, both co-word analysis and latent Dirichlet allocation (LDA) topic modeling were utilized. Co-word analysis involved examining the frequency and co-occurrence of keywords within the dataset, revealing the main topics of interest and their interrelations. LDA topic modeling provided a more sophisticated approach to uncovering latent themes by statistically modeling the distribution of words across documents. This dual approach ensured a comprehensive understanding of the thematic landscape of the research field.

d) Citation analysis

Citation analysis was conducted to determine the most influential papers, authors, and journals within the dataset. This metric helps in identifying seminal works and key contributors that have significantly impacted the field. Additionally, citation burst detection was employed to identify emerging research fronts, which are areas experiencing a rapid increase in citations. This analysis is crucial for recognizing new and potentially transformative research trends.

3.3 Data synthesis and integration

3.3.1 Mixed-methods integration

The data synthesis and integration process employed a mixed-methods approach, combining qualitative and quantitative findings to provide a comprehensive understanding of the research domain. Triangulation was a key strategy, involving the comparison and integration of findings from both the systematic review and the bibliometric analysis. This approach ensured the validation and enrichment of results, offering a more nuanced perspective on the research landscape. The integration process culminated in the development of a comprehensive conceptual model, which synthesized insights from the different strands of evidence to depict the relationships and dynamics within the field.

3.3.2 Thematic synthesis

The thematic synthesis was guided by the Joanna Briggs Institute (JBI) approach for mixed-methods systematic reviews. This involved systematically identifying and synthesizing themes across qualitative and quantitative studies included in the review. The JBI approach is renowned for its rigor and methodological robustness, facilitating the extraction and integration of key themes and patterns from diverse data sources. This thematic synthesis provided a coherent narrative that highlighted the central themes, research gaps, and emerging trends in the field.

3.3.3 Quantitative synthesis

For the quantitative synthesis, a meta-analysis was conducted where applicable. This involved aggregating and statistically analyzing quantitative data from the selected studies to derive overall effect sizes and trends. Random-effect models were used to account for variability between studies and to provide more generalized conclusions. Sensitivity analyses were also performed to assess the robustness of the findings. These analyses tested the stability of the results under various assumptions and inclusion criteria, ensuring that the synthesized outcomes were reliable and reflective of the underlying data.

3.4 Reliability and validity measures

3.4.1 Inter-rater reliability

To ensure the reliability of the data collection and analysis processes, inter-rater reliability measures were rigorously implemented. Two independent researchers were involved in all stages of screening and data extraction. This dual approach minimized potential biases and inconsistencies in the selection and interpretation of relevant studies. Both researchers independently screened the titles, abstracts, and full texts of the articles, followed by data extraction using standardized forms. Any discrepancies between the researchers' assessments were resolved through discussion and, if necessary, consultation with a third reviewer. This process ensured that the inclusion and exclusion criteria were uniformly applied and that the data extracted were accurate and representative of the original studies.

3.4.2 Triangulation

Triangulation was employed as a key strategy to enhance the validity of the findings. Methodological triangulation involved the use of multiple data sources and analytical approaches to corroborate the results. By integrating data from systematic reviews and bibliometric analyses, the study leveraged different perspectives and methods to validate the findings. This comprehensive approach ensured that the conclusions drawn were robust and reliable. Triangulation not only provided a more nuanced understanding of the research topic but also reduced the likelihood of systematic biases affecting the results. The combination of qualitative and quantitative methods, as well as the use of various analytical tools, contributed to a well-rounded and credible synthesis of the literature.

This comprehensive methodology combines the strengths of established systematic review protocols (PRISMA and PSALSAR) with advanced bibliometric analysis techniques. By following this rigorous and transparent process, we aim to provide a thorough examination of the role of Islamic finance in achieving SDGs, identifying key factors, trends, and research gaps in this critical area of study.

4. Results and Discussion

Our mixed-methods approach yielded comprehensive insights into the role of Islamic finance in achieving SDGs.

4.1 Systematic literature review protocols

4.1.1 Systematic literature review

Following the PRISMA protocol and PSALSAR approach, we identified 33 high-quality studies meeting all inclusion criteria (refer to Figure 3). The ranking resulted in the following distribution:

•Tier 1 (Highly Relevant): 12 studies

•Tier 2 (Moderately Relevant): 15 studies

•Tier 3 (Somewhat Relevant): 6 studies.

Figure 3. PRISMA protocol guided by PSALSAR approach

4.1.2 Contributing factors of Islamic finance in achieving SDGs

We identified seven key factors, presented in Table 3. Environmental Sustainability emerged as the dominant factor, present in 51.52% of the studies, followed by Islamic Finance Principles (18.18%) and Financial Inclusion (12.12%).

The dominance of environmental sustainability (51.52%) in our PSALSAR-ranked literature underscores the critical role of Islamic finance in addressing climate change and promoting sustainable resource management. This aligns with global priorities and suggests that Islamic financial instruments, particularly green sukuk, have significant potential in financing sustainable projects.

The relatively low representation of digital finance (3.03%) in our PSALSAR-ranked studies suggests an important area for future research. As financial technology evolves rapidly, exploring the intersection of Islamic fintech and SDGs could uncover innovative pathways for sustainable development.

The PSALSAR ranking revealed a good distribution of high-quality studies (Tier 1: 36.36%), indicating a robust evidence base. However, the presence of Tier 3 studies (18.18%) suggests room for improvement in research quality and relevance.

Table 3. Factors contributing to Islamic finance in achieving SDGs

Factor

Percentage of Studies (%)

Number of Studies (n)

Environmental sustainability

51.52%

17

Islamic finance principles

18.18%

6

Financial inclusion

12.12%

4

Islamic social investment

9.09%

3

Digital finance

3.03%

1

Microfinance

3.03%

1

Economic empowerment

3.03%

1

Figure 4 illustrates a treemap that highlights the key factors contributing to the role of Islamic finance in advancing the United Nations Sustainable Development Goals (SDGs). The sizes of the segments within the treemap represent their relative significance in existing literature. This analysis highlights the vital contributions of Islamic finance to sustainable development, emphasizing opportunities for expanding green financing initiatives, utilizing fintech to enhance financial inclusion, and reinforcing social investment mechanisms to tackle ongoing global challenges.

Figure 4. Treemap of factors contributing to Islamic finance in achieving SDGs

4.1.3 Temporal trends

Figure 5 illustrates the annual publication trend from 2015 to 2024, showing a significant increase in research output in 2024 with a notable surge beginning in 2020. This trend coincides with an increased global focus on sustainable finance and may reflect the growing recognition of Islamic finance as a tool for achieving SDGs.

Figure 5. Annual publication on Islamic finance and SDGs (2015-2024)

4.2 Bibliometric network analysis

The bibliometric network analysis provides a visual representation of the interconnectedness and thematic focus areas within the research on Islamic finance and sustainable development. Using VOSviewer software, we generated a network visualization that highlights the key terms and their relationships, as illustrated in the bibliometric network map (Figure 6). This analysis complements the systematic review findings and offers deeper insights into the structure and evolution of the research landscape.

Figure 6. Keyword co-occurrence network

The analysis revealed five major clusters of collaborative research, with the largest cluster centered around authors from Indonesia.

4.2.1 Keyword co-occurrence network

The network visualization reveals several prominent clusters, each representing a specific thematic focus within the broader field of Islamic finance and sustainable development. The size of the nodes indicates the frequency of keyword occurrences, while the thickness of the lines represents the strength of the relationships between keywords. This analysis helps to identify the core areas of research and the interconnections between different topics.

Figure 6 presents the keyword co-occurrence network, highlighting the centrality of terms such as "sustainability," "green innovation," "financial development," and "financial inclusion."

Among these, "environmental sustainability," constituting 51.52% (n=17) of the studies in Table 3, dominates the network, showcasing Islamic finance's pivotal role in promoting green finance, renewable energy, and sustainable economic growth.

The cluster around "Islamic finance principles" (18.18%, n=6) emphasizes Shariah-compliant frameworks such as risk-sharing and ethical investments, while "financial inclusion" (12.12%, n=4) is a smaller yet crucial theme highlighting the sector's capacity to bridge financial accessibility gaps. Additionally, smaller nodes like "Islamic social investment" (9.09%, n=3), "digital finance," and "microfinance" (3.03% each, n=1) reveal emerging areas where Islamic finance can contribute to economic empowerment and technological innovation.

This visualization aligns with Table 3 by not only reaffirming the primary focus on environmental sustainability but also uncovering evolving intersections, such as green sukuk and fintech, as critical pathways to achieving broader SDGs.

4.2.2 Geographical and temporal trends

Research contributions were predominantly from Indonesia, South Asia, China and Nigeria, reflecting the strong presence of Islamic finance in these economies. These countries are represented by dense clusters of keywords and co-authorship links, indicating prolific research output and collaboration (Figure 7).

Figure 7. Geographical and temporal trends

This geographical distribution reflects the increasing importance of Islamic finance not only in traditional markets but also in non-Muslim-majority regions like China and Nigeria. The presence of Chinese investments in infrastructure through Islamic financial instruments and Nigeria’s use of Islamic social finance tools like sukuk demonstrates the expanding influence of Shariah-compliant finance beyond its traditional boundaries. This diversification of research focus highlights the adaptability of Islamic finance to various economic and cultural contexts, with emerging economies integrating it to address local development needs and SDGs.

However, the limited contributions from Malaysia and Pakistan—countries traditionally viewed as pioneers of Islamic finance—suggest either a shift in academic focus or an underrepresentation of their recent contributions in bibliometric databases. This trend reveals the need for greater global collaboration to foster knowledge sharing between these emerging and established financial hubs. Policymakers in these regions can leverage cross-regional partnerships to develop innovative financial instruments tailored to local needs, particularly in the areas of infrastructure financing, microfinance, and Islamic fintech. Future research should explore comparative studies to assess how Islamic finance performs across these diverse markets, especially under different regulatory frameworks and market conditions. Additionally, the reliance on indexed databases like Scopus and Web of Science may have excluded important regional studies, indicating the need for broader inclusion of grey literature in future bibliometric analyses.

4.2.3 Interconnections and emerging themes

Content analysis of the selected studies revealed a strong emphasis on environmental sustainability (51.52%), particularly focusing on green sukuk and renewable energy financing. Financial inclusion emerged as a secondary theme, with studies exploring innovative Islamic financial products for underserved populations.

5. Conclusions

This comprehensive study has illuminated the critical intersection between Islamic finance and sustainable development, offering valuable insights into how Islamic financial principles and instruments can be leveraged to achieve the United Nations SDGs. Through our innovative mixed-methods approach, combining systematic literature review, PSALSAR methodology, and advanced bibliometric analysis, we have uncovered several key findings that have significant implications for both research and practice in this rapidly evolving field.

Our analysis has revealed seven primary factors through which Islamic finance contributes to SDG achievement, with environmental sustainability emerging as the dominant theme. This strong alignment between Islamic finance principles and environmental, social, and governance (ESG) criteria underscores the potential of Islamic financial instruments, such as green sukuk, in addressing pressing global environmental challenges. The marked increase in research output since 2020 further emphasizes the growing recognition of Islamic finance's role in sustainable development, signaling a shift in both academic and practical focus towards this crucial intersection.

The geographical concentration of research in countries like Malaysia, Indonesia, and Pakistan highlights both the current centers of expertise in Islamic finance and sustainable development, as well as the opportunities for broader global engagement. This finding calls for increased international collaboration and knowledge sharing to harness the full potential of Islamic finance in achieving SDGs across diverse economic and cultural contexts.

Our bibliometric analysis has also unveiled emerging focus areas, such as the integration of financial technology with Islamic finance principles, pointing towards future directions for innovation in sustainable finance. These emerging trends offer exciting possibilities for enhancing the reach and impact of Islamic financial instruments in supporting sustainable development initiatives.

However, our study also reveals critical gaps in the current research landscape. There is a need for more empirical studies that quantify the impact of Islamic finance on specific SDG indicators, as well as comparative analyses between Islamic and conventional finance approaches in achieving sustainability goals. Additionally, the geographical concentration of research suggests a need for more diverse perspectives and applications of Islamic finance principles in different cultural and economic settings.

For policymakers, our findings highlight the importance of creating supportive regulatory frameworks that facilitate the growth of Islamic finance instruments aligned with SDGs. Financial institutions can leverage these insights to develop innovative products that meet both Shariah compliance and sustainability criteria, potentially tapping into new markets and investor bases.

For researchers, this study provides a comprehensive foundation upon which to build future investigations. We recommend further exploration of the synergies between Islamic finance and emerging technologies in advancing sustainable development, as well as in-depth studies on the specific mechanisms through which Islamic finance can address individual SDGs.

In conclusion, this study represents a significant contribution to the understanding of Islamic finance's role in achieving global sustainability goals. By providing a refined, evidence-based analysis of the current landscape and identifying critical areas for future research and development, we have laid the groundwork for more targeted and effective leveraging of Islamic finance in addressing the world's most pressing sustainability challenges. As the field continues to evolve, the integration of Islamic finance principles with sustainable development goals offers a promising pathway towards a more equitable and sustainable global economy.

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