This book explores the dynamic evolution of Islamic finance in the face of global financial transformation. It addresses critical challenges, from unemployment and economic justice to cutting-edge innovations such as blockchain, cryptocurrencies, and Central Bank Digital Currencies. It delves into practical applications, including microfinance, Shariah governance technologies, and the Sustainable Development Goals. The book comprises three key sections. The first explores theoretical foundations and economic perspectives; it begins by reviewing mainstream economic theories and introducing Islamic economic principles. It explores alternative frameworks through the lenses of Islamic and heterodox economic perspectives, offering insights into how these viewpoints can contribute to a more equitable economic landscape, and underscores the rich potential for future exploration, emphasizing the transformative impact of integrating diverse economic viewpoints into policy discourse. The second part examines Islamic finance innovations and technological advancements. It investigates the use of technology-based solutions in the Islamic finance industry for regulatory and supervisory purposes. It discusses the profound implications of these technological advancements on financial systems, with a particular focus on stability, security, and regulation. Notably, these transformative changes have posed distinctive challenges in Muslim-majority countries, largely due to the absence of Shariah-compliant financial services. The third and final section illustrates how the theoretical concepts and innovations can be applied in real-world settings. The book provides insights applicable to various regions, particularly in Muslim-majority countries, and effectively focuses on both the contemporary challenges faced by Islamic finance and the innovations that are shaping its future. By bridging traditional principles with modern advancements, this book offers valuable insights for academics, practitioners, and policymakers navigating the rapidly changing landscape of Islamic finance.Muhammad Ismail is Assistant Professor and Head, Department of Business and Management, University of Veterinary and Animal Sciences (UVAS), Swat, Pakistan.Ahmet Faruk Aysan is Professor of Islamic Economy and Finance at Hamad Bin Khalifa University, Qatar.Mounther Barakat is Professor of Finance at New York University Abu Dhabi, United Arab Emirates.
