SHARIA-BASED ECONOMY: CHALLENGES AND OPPORTUNITIES IN THE MODERN ERA

Abstract

The development of the global economy and advancements in digital technology have given rise to alternative economic systems grounded in Sharia principles. The Sharia economy is viewed as capable of delivering justice, transparency, and solutions to the instability of conventional systems. This article aims to analyze the challenges and opportunities of Sharia-based economies in the modern era using a qualitative method through literature studies from various national journals. The study findings indicate that the primary challenges of the Sharia economy include low public literacy, limitations in regulations and legal harmonization, minimal innovation in Sharia financial products, competition with conventional systems, and uneven quality of human resources. On the other hand, significant opportunities exist, such as the growth of the halal industry, support from government regulations and DSN-MUI, advancements in digitalization and Sharia fintech, the potential of the global Muslim market, and the role of the Sharia economy in expanding financial inclusion for lower-middle-class communities. This analysis underscores that optimizing the potential of the Sharia economy in the modern era requires synergy among regulations, digital innovation, literacy enhancement, and human resource strengthening. With such strategies, the Sharia economy has the potential to become a driving force for sustainable development while serving as a competitive alternative on the global stage.