Islamic Impact Investing: Islamic Finance Innovation in World Economic Transformation

Abstract

This article examines the concept of Islamic Impact Investing as an innovation in Islamic finance that integrates Islamic principles with sustainable development goals. Amidst global challenges such as the climate crisis, social inequality, and digital disruption, Islamic Impact Investing is present as an investment approach that not only pursues financial returns, but also positive social and environmental impacts. This article uses a descriptive-qualitative approach based on literature studies and empirical data to explain how instruments such as green sukuk , cash waqf , productive zakat , and Islamic fintech play a strategic role in supporting the transformation of the world economy. The main findings show that Islamic impact investing has great potential in financing sustainable and inclusive projects, while maintaining ethical values and social justice. However, challenges such as limited regulations, lack of digital and Islamic financial literacy, and the need for cross-sector collaboration are important notes in the development of this model in the future.