Growth Without Transformation? Structural Concentration and Alignment of Maqasid in Global Islamic Finance

Abstrak

Introduction/Main Objectives: This study evaluates whether the rapid growth of global Islamic finance has been accompanied by structural transformation and stronger alignment with maqasid al-shariah, focusing on sectoral concentration, development determinants, and industry narratives. Research Methods: Data from major Islamic finance jurisdictions during 2012–2022 were analysed using descriptive analysis, regression modelling, and Natural Language Processing (NLP). A Structural Imbalance Index and Maqasid Index were also developed. Finding/Results: Islamic banking remained dominant, accounting for over 70% of total assets. Banking dominance supported industry growth but was negatively associated with maqasid alignment, while greater diversification strengthened maqasid performance. NLP findings showed stronger emphasis on asset growth than on social justice, redistribution, and financial inclusion. Conclusion: Sustainable Islamic finance requires greater diversification and stronger maqasid al-shariah alignment.