Transformation of the Islamic financial model in the Global economic architecture: theoretical, mathematical, and environmental aspects

Abstract

This research provides a comprehensive and multi-dimensional analysis of the Islamic financial model (IFM) as a systemic alternative to the prevailing debt-based global financial architecture. The study explores the paradigm shift from risk-transfer to risk-sharing, utilizing advanced mathematical modeling of Profit and Loss Sharing (PLS) mechanisms to demonstrate financial resilience. By examining the evolutionary trajectory of Green Sukuk in Malaysia and the UAE, the paper identifies a significant convergence between Shari’ah principles and the global Environmental, Social, and Governance (ESG) agenda. Furthermore, it articulates a strategic roadmap for the institutional development of Islamic finance within the Republic of Kazakhstan and the Astana International Financial Centre (AIFC), emphasizing its role in achieving national carbon neutrality goals, attracting cross-border investment, and fostering ethical digitalization through Fintech.