Impact of Islamic banking on economic growth: a systematic review of SCOPUS-indexed studies (2009–2024)

This systematic literature review investigates the influence of Islamic banking on economic growth by analyzing 68 studies from the SCOPUS database, spanning from 2009 to 2024. The findings consistently show a positive relationship between Islamic banking and economic growth, highlighting its role in fostering inclusive development, reducing economic volatility, and enhancing financial stability, especially during crises. Islamic banking also significantly contributes to social development and poverty alleviation through mechanisms, such as zakat and microfinance. The findings also suggest that integrating FinTech with Islamic banking could enhance the accessibility and efficiency of Islamic banking services. This study provides valuable insights for policymakers in designing regulations that promote financial inclusion, market efficiency, and economic resilience. Additionally, the adoption of technologies, such as blockchain, artificial intelligence, and digital banking can enable Islamic banks to offer secure, accessible, and transparent financial services while adhering to Shariah principles. Overall, Islamic banking makes a substantial contribution to economic growth and development. The study underscores the necessity for strategic regulatory frameworks and the integration of technology to fully leverage Islamic banking’s potential in enhancing economic stability and inclusivity.This study systematically reviews 68 SCOPUS-indexed studies published between 2009 and 2024 to explore the multifaceted relationship between Islamic banking and economic growth. The findings reveal that Islamic banking significantly promotes financial inclusion, macroeconomic stability, and sustainable development, especially in times of crisis. The review underscores the sector’s unique role in fostering ethical finance, poverty alleviation, and technological integration through FinTech. By synthesizing empirical insights across regions and methodologies, this work offers critical policy guidance for enhancing regulatory frameworks, integrating Islamic finance with national development strategies, and leveraging digital transformation. The study fills crucial gaps in the literature by mapping the evolving role of Islamic banking in global financial systems and its potential to drive inclusive and resilient economic growth.