Islamic Financial Literacy as a Catalyst for Ethical Investment and Sustainable Wealth Management: A Literature Review
Keywords:
Islamic Financial Instruments, Maqasid al-Shariah, Sustainable Finance, Ethical Finance, Socio-Economic DevelopmentAbstract
The intersection of Islamic Financial Literacy (IFL) and sustainable wealth management has become increasingly significant in both academic and policy discourse. Financial literacy is essential for informed decision-making, yet IFL research remains underdeveloped compared to conventional financial literacy, despite Islamic finance’s projected growth to USD 4.5 trillion by 2030. This study adopts a qualitative secondary research approach, critically reviewing 59 academic articles sourced from Google Scholar and Web of Science. Three major insights emerged. First, IFL is deeply rooted in Qur’anic ethics and governance principles but remains insufficiently integrated into ethical investment and sustainability frameworks. Second, it empowers families and entrepreneurs through Shariah-compliant tools, such as sukuk, takaful, and Islamic wealth management instruments, thereby supporting ethical wealth creation. Third, IFL contributes to broader economic stability by facilitating financing, infrastructure investment, and job creation. However, limited consumer awareness and weak disclosure practices restrict the effective use of Shariah-compliant products. The review also reveals gaps in measurement validation and cross-cultural testing, with most studies concentrated in Malaysia, Indonesia, and the GCC. Furthermore, rapid product expansion has created supply-side challenges, and the conceptual linkage between IFL and the Sustainable Development Goals (SDGs) remains fragmented. The study concludes that enhancing IFL is vital to improving transparency, strengthening ethical investment, and positioning Islamic finance as a key driver of sustainable economic development.
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