Integrated Green-Fintech Framework for Value-Based Islamic Wealth Creation: Bridging Green Sukuk, Smart Contracts, and Maqasid al-Shariah

Abstract

The exponential expansion of Sustainable and Responsible Investment (SRI) alongside rapid advancements in distributed ledger technology (DLT) presents a transformative opportunity for Islamic Financial Institutions (IFIs). While Green Sukuk have emerged as vital Shariah-compliant debt instruments for financing sustainable infrastructure, systemic operational bottlenecks—specifically high administrative transaction fees, a deficit in real-time impact verification, and persistent risks of "greenwashing"—hinder market scalability. This paper proposes the Integrated Green-Fintech (IGF) Framework, an interdisciplinary theoretical and conceptual model combining blockchain smart contracts, Artificial Intelligence (AI), Internet of Things (IoT) data Oracles, and the foundational objectives of Maqasid al-Shariah (focusing on Hifz al-Mal and Hifz al-Biah). AI-processed environmental data into self-executing smart contracts can theoretically automate Sukuk profit disbursements based on verifiable ESG key performance indicators (KPIs), addressing governance fragmentation and advancing Value-Based Intermediation (VBI). Addressing critical peer-review observations, this revised paper clearly distinguishes between established empirical literature and hypothesized framework benefits. Furthermore, it provides an in-depth analysis of technical failure modes (Oracle security, smart contract bugs, IoT tamper-resistance), delineates continuous Shariah governance mechanisms, formulates testable empirical propositions, and addresses multi-jurisdictional legal enforceability across major Islamic finance hubs.