Islamic Green Retail Investment in the Maldives: A Conceptual Integration of Behavioral and Institutional Perspectives

Abstract

The Maldives faces a dual challenge of severe environmental vulnerability and limited financial market depth, making the development of Islamic green investment particularly critical. Despite rising awareness of sustainability and Islamic finance, existing green initiatives remain largely concentrated in the business and resort sectors, while retail investor participation requires significant enhancement. This study develops a conceptual framework that integrates institutional theory with the theory of planned behavior (TPB) to explain retail investors’ intentions toward Islamic green investment. The study utilizes an intensive literature review combined with a systematic literature review (SLR) based on the PRISMA guidelines to systematically identify recurring themes and theoretical patterns, thereby strengthening the proposed model. The findings provide valuable insights for policymakers, corporations, and government institutions in promoting environmentally responsible practices that enable adaptation and resilience to climate change while ensuring long-term sustainability. The Maldives presents a unique setting for this framework compared to other countries, as its small market size, strong Islamic identity, and acute climate risks highlight the urgent need to align institutional forces with individual investment behavior.