In the expanding world of Islamic finance, housing projects labeled “Sharīʿah-compliant” have become a symbol of religious devotion fused with modern economic ambitions. Yet, a recent study by Muhammad Deni Putra, Akhmad Rofiki, Ana Toni Roby Candra Yudha, Ivan Riyadi and Siti Fadilla, published in the Journal of Islamic Law (Scopus Q1), reveals a more complex reality. Their work uncovers how the Islamic housing boom in Lima Puluh Kota, West Sumatra, transforms Islamic ethics into marketing strategies, raising critical questions about justice, power imbalance, and religious commodification in contemporary Muslim societies. The study, titled ”When the Sacred Meets the Market: The Commodification of Islamic Housing in Lima Puluh Kota, West Sumatra”, explores how Islamic symbols and Sharīʿah-based financing models, like istisnāʿ and ijārah muntahiyah bi tamlīk, are employed not only to attract devout Muslim consumers but also to navigate market dynamics. This dynamic exposes how faith-driven housing initiatives, originally intended to embody the maqāṣid al-sharīʿah (objectives of Islamic law), often become entangled with the very commercial forces they seek to transcend.
strong>The Role of Islamic Symbols in Housing Development
Traditionally, Islamic economic principles emphasize fairness, transparency, and social welfare. However, the study reveals that Islamic housing in West Sumatra frequently leverages religious symbols more as branding tools than substantive ethical commitments. Developers brandish Sharīʿah-compliant labels to entice middle-class Muslim buyers, offering homes free from ribā (usury), gharar (uncertainty), and maysir (gambling). Yet, beneath this religious veneer, significant structural tensions arise. While buyers seek religious purity and community homogeneity, developers bear disproportionate financial risks under istisnāʿ contracts, and consumers face legal ambiguities under ijārah muntahiyah bi tamlīk agreements. This commodification process suggests that Islamic identity has been repackaged for market consumption, a trend not without consequences for the integrity of Islamic economic principles.
How Sharīʿah-Labelled Housing Reshapes Middle-Class Muslim Life
The study shows that Muslim middle-class buyers in Lima Puluh Kota are motivated by three main factors: a desire to avoid ribā, flexible economic arrangements, and the search for religiously homogeneous environments. Religious motives remain primary — buyers wish to express their Islamic faith not just through rituals but through everyday life, including where and how they live. However, the project reveals an irony: while aiming for Islamic ideals, such housing developments unintentionally reinforce spatial segregation and exclusivism. Instead of fostering an inclusive Islamic society, Sharīʿah housing projects can fragment the urban landscape into enclaves of religious homogeneity, subtly contradicting Islam’s universalistic social vision.
The Ethical Challenge of Islamic Finance in Practice
What makes this study particularly compelling is its critical insight into the practical challenges facing Islamic economic initiatives. Istisnāʿ contracts expose developers to high financial vulnerability, while ijārah muntahiyah bi tamlīkstructures leave consumers with precarious legal standing until full payment is completed. Without stronger regulatory oversight and fairer business models, Islamic housing risks undermining the very maqāṣid al-sharīʿah it purports to uphold. Rather than merely fulfilling formal Sharīʿah compliance, the researchers argue for a deeper commitment to Islamic values like justice, welfare, and risk-sharing in the Islamic housing sector.
Toward a More Just Future in Islamic Housing
Putra and his colleagues conclude that Islamic housing must be more than a marketing exercise if it is to faithfully embody Islamic ethics. They call for standardized contracts, better risk-mitigation mechanisms, and greater regulatory intervention to ensure that Islamic finance serves human dignity and social justice not just commercial interests. Their study is a powerful reminder: the future of Islamic economic development depends not only on technical Sharīʿah compliance but also on the ethical sincerity with which Islamic principles are actualized in everyday practice.
