From Economic Justice to Profitability: Has the Practice of Islamic Economics Lost Its Social Orientation?

Abstract

The development of Islamic economics over the past several decades has transformed it from a normative concept into a comprehensive economic ecosystem encompassing Islamic banking, Islamic capital markets, sukuk, takaful, Islamic fintech, the halal industry, zakat, and productive waqf. This development reflects the growing acceptance of Islamic economic principles within the modern economic system. However, the institutionalization and commercialization of Islamic economics have raised concerns about a potential shift from justice and social welfare toward profitability and industrial growth. This study critically examines the relationship between profitability and social orientation in contemporary Islamic economic practices and evaluates the gap between sharia compliance and the achievement of maqashid al-shariah. The study employs a critical literature review using a qualitative descriptive-analytical approach. The literature is analyzed thematically, focusing on economic justice, maslahah, maqashid al-shariah, profitability, wealth distribution, financial inclusion, social responsibility, zakat, waqf, and Islamic industries. The findings indicate that profitability is not inherently inconsistent with Islamic principles, as financial sustainability is essential for institutional continuity. However, mission drift may occur when profitability becomes the primary objective and social orientation is subordinated. Therefore, Islamic economics needs to move from a sharia compliance paradigm toward sharia impact by positioning maqashid al-shariah as an evaluative framework integrating financial performance, social justice, economic inclusion, ethical responsibility, and environmental sustainability.