Journal of Islamic Finance

Key Factors Driving Retail Investors to Embrace Islamic FinTech-SOTS (Shariah Online Trading System) in Indonesian Islamic Capital Market

Berlianto Haris — 2026-10-07

Since its introduction in 2011, the Islamic FinTech–Shariah Online Trading System (SOTS) has served as a major innovation in Indonesia's Islamic capital market, enabling Shariah-compliant securities trading. Despite its potential, SOTS adoption among retail stock investors remains limited, with its market share declining from 5.1% in 2020 to 2.9% in 2025. This study investigates the determinants of retail investors' intention to use SOTS, with perceived trust (PT) examined as a mediating variable between attitude toward behavior (AB) and intention to use (ITU). Grounded in the Technology Acceptance Model (TAM), this quantitative study extends the model by incorporating government support (GS), religiosity (R), Islamic financial literacy (IFL), and user innovativeness (UI). Data were collected through an online questionnaire using purposive sampling, yielding 596 valid responses, and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that perceived ease of use (PEOU), user innovativeness, religiosity, and Islamic financial literacy significantly influence attitude toward behavior, while perceived trust partially mediates the relationship between attitude toward behavior and intention to use SOTS. Conversely, government support and perceived usefulness do not have a significant effect on attitude toward behavior. This study contributes to the literature by extending TAM within the context of the Indonesian Islamic capital market and demonstrating the importance of Islamic-specific factors in explaining FinTech adoption. The findings also provide practical implications for regulators, policymakers, and industry practitioners in formulating strategies to strengthen SOTS adoption and promote greater financial inclusion in the Islamic capital market.

The Zakat, Technological Innovation, and Social Entrepreneurship: A PLS-SEM Analysis of Perceived Sustainable Development Impact

Tanvir Hossain — 2026-10-07

This study investigates whether stakeholders’ awareness of and commitment to zakat are associated with perceived sustainable development impact, and whether technological innovation and social entrepreneurship mediate this relationship. Grounded in maqasid al-shariah as a normative lens and resource orchestration as the explanatory logic, the study develops a four-construct model linking zakat awareness and commitment (ZAC), technological innovation (TIN), social entrepreneurship (SEO), and perceived sustainable development impact (ZSD). Data from 218 purposively sampled stakeholders were analysed using partial least squares structural equation modelling (PLS-SEM) with 5,000 bootstrap resamples and percentile confidence intervals. The findings indicate that technological innovation is the strongest correlate of social entrepreneurship (β = 0.381, p < 0.001), while social entrepreneurship is the strongest correlate of perceived sustainable development impact (β = 0.338, p < 0.001). Although ZAC exhibits a direct association with the final outcome (β = 0.155, p = 0.028), it is not significantly associated with social entrepreneurship. Social entrepreneurship mediates the association between technological innovation and perceived sustainable development impact (indirect effect = 0.129, p < 0.001). However, evidence regarding the indirect paths originating from ZAC remains inconclusive across the inferential criteria. The model accounts for 24.0 per cent of the variance in the target outcome (adjusted R² = 0.229). This paper offers a preliminary, perception-based evaluation of the zakat–innovation–entrepreneurship–development continuum as an integrated system and identifies the conditions under which broader claims may be warranted.

The Impact of Economic Diversification on Sustainable Development in the Kingdom of Bahrain: The Moderating Role of Islamic Banks’ Performance

Amna Alfardan — 2026-10-07

This paper examines whether economic diversification has improved sustainable development in the Kingdom of Bahrain over the period 2015 to 2024, and whether the performance of the Islamic banking sector conditions that relationship. Annual data from official sources were disaggregated into quarterly series (N = 40) and analysed within an ARDL/ECM framework, with Newey-West HAC standard errors and a mean-centred interaction term used to test moderation. The results show no statistically significant direct effect of economic diversification on sustainable development in any of its dimensions, a finding consistent with the persistent gap between productive diversification (non-oil sectors average 82.5 per cent of GDP) and fiscal diversification (non-oil revenues average 28 per cent of government income). Islamic banks’ performance, by contrast, has a significant positive effect on the social dimension (β = 0.113, p = 0.018) and a strong positive effect on the environmental dimension (β = 0.385, p < 0.001) of sustainable development, and cointegration tests confirm a long-run equilibrium relationship between banking performance and development. The interaction term between diversification and banking performance is negative and significant (δ = -0.044, p = 0.018), indicating a buffering form of moderation: as Islamic banks perform better, they generate an independent development effect that reduces the economy’s reliance on the diversification path alone. The paper draws implications for Islamic finance policy under Bahrain’s Economic Vision 2030.

Assessing Changes In Mustahik Welfare Following A Productive Zakat Programme: A Cibest-Based Evaluation Of The Madrasah Bisnis Al-Aqsha Programme

Abdul Haris Haris — 2026-10-07

This study evaluates changes in the material and spiritual welfare of beneficiaries (mustahik) participating in the Madrasah Bisnis Al-Aqsha (MBA) programme, administered by LAZ Al-Aqsha De Latinos in South Tangerang City, Indonesia. As an instrument of Islamic social finance, productive zakat provides working capital, business equipment, and mentorship to empower micro-entrepreneurs and foster greater economic independence. Employing a survey design, this study examines 57 mustahik households that had actively participated in the MBA programme and received productive zakat assistance for at least one year. Using the Center for Islamic Business and Economic Studies (CIBEST) model, the findings demonstrate statistically significant improvements in the material and spiritual welfare indices of participating households following their participation in the programme. Furthermore, the findings indicate that the programme contributes to the objectives of Sustainable Development Goal (SDG) 1 (No Poverty) in Banten Province, including South Tangerang City. These results underscore the important role of professional zakat management in supporting targeted socio-economic empowerment and poverty alleviation. Overall, the study highlights the potential of productive zakat as an institutional mechanism for supporting sustainable economic development and offers policy insights for zakat management organisations (amil) at the local and national levels.

Maqasid Al-Shariah-Based Measurement Constructs In The Halal Economy: A Bibliometric Analysis Of Key Themes

Saheed Busari — 2026-10-07

Maqasid al-Shariah provides a foundational ethical and welfare-oriented framework for the halal economy. However, its application remains largely theoretical, with limited translation into concrete operational constructs capable of guiding business operations, policy formulation, and consumer protection. While existing literature emphasises the conceptual relevance of Maqasid al-Shariah, empirical measurement instruments for evaluating industry performance against Islamic objectives remain underdeveloped. This study addresses this critical gap by proposing a Maqasid al-Shariah-based conceptual framework to inform future benchmarking instruments and governance standards across the halal economy. Employing a mixed-methods bibliometric design, the study systematically analyses 130 peer-reviewed documents published between 2009 and 2024 and indexed in the Scopus database. Quantitative and qualitative analyses were conducted using VOSviewer and complementary analytical software to map research trajectories, keyword co-occurrences, and thematic clusters. The bibliometric mapping reveals a fragmented literature landscape characterised by single-sector evaluations and a lack of unified measurement frameworks. To address this gap, the study proposes an integrated conceptual framework establishing operational constructs and indicators across key halal sectors, including halal food, Islamic finance, Muslim-friendly tourism, and pharmaceuticals, explicitly mapped to the five essential objectives (daruriyyat) of Maqasid al-Shariah. The proposed framework provides an analytical foundation for ethical benchmarking, Shariah-compliant performance evaluation, corporate governance, and consumer protection mechanisms. By operationalising theoretical Maqasid principles into measurable criteria, this study advances a value-driven and sustainable governance model for the global halal economy.