Development of Islamic Economics in the Era of Globalization

The development of Islamic economics in the era of globalization has become an important phenomenon that has attracted the attention of many groups. In the midst of increasingly rapid globalization, this economic system based on sharia principles is showing significant growth. With the principles of justice, transparency and sustainability, Islamic economics offers an alternative for society in facing modern economic challenges. First, the growth of the sharia financial industry has become one of the main pillars of Islamic economic development. Sharia banks are not only growing in Muslim-majority countries, but are also increasingly in demand in other countries. According to the Global Islamic Finance Report 2021, global sharia banking industry assets are estimated to reach $2.88 trillion in 2023. This reflects the increasing public trust in sharia banks that apply the principle of no interest (riba), which is considered fairer and more ethical. Second, the world of sharia investment is experiencing a significant surge. Sharia-based investment products, such as sukuk (sharia bonds), attract the attention of global investors. Sukuk offer security and profitability in line with halal investment principles. In addition, many companies are transforming towards more sustainable and sharia-compliant business models to attract the attention of investors who care about social and environmental responsibility. Third, the halal sector is becoming increasingly relevant in the era of globalization. Demand for halal products, from food to fashion, is experiencing rapid growth. According to the State of the Global Islamic Economy 2021 report, the halal market is expected to reach $2.4 trillion by 2024. Countries such as Malaysia and Indonesia are capitalizing on this potential with effective marketing strategies to promote halal products internationally, especially in countries with large Muslim populations. Fourth, the challenges faced in developing Islamic economics in the era of globalization need to be identified. Regulations that are still insufficiently supportive, as well as a lack of public understanding regarding sharia products, are obstacles. Therefore, education and outreach regarding sharia economics must be a priority, in order to increase public awareness and understanding. Fifth, technological developments also play a role in accelerating Islamic economic growth. Sharia fintech, for example, brings innovation in the way of transactions and financial management. Applications that provide sharia-based financial services are able to access communities previously marginalized from the formal financial system. This enables better financial inclusion and contributes to local economic growth. The success of the Islamic economy in adapting to global demands cannot be separated from the proactive leadership of stakeholders. Collaboration between the government, financial institutions and the private sector is very important to create an ecosystem that is conducive to sharia economic growth. With this synergy, Islamic economics has the potential to become an alternative in overcoming the economic crisis and creating a more inclusive and sustainable growth model. The globalization trend that emphasizes economic connectivity between countries provides opportunities for Islamic economics to develop. In this context, a clean financial culture that avoids elements of speculation becomes more relevant. Society is increasingly prioritizing ethical values ​​in business that are in line with Islamic economic principles. Along with that, the development of the digital economy also opens up wider opportunities for the sharia economy to compete in the global market. The development of Islamic economics in the era of globalization shows great potential to have a positive impact on society. By harnessing the power of innovation and sharia principles, Islamic economics can contribute to greater global prosperity.