Analysis of the Influence of Sharia Economic Literacy on Investment Decisions of Muslim Society

This research aims to analyze the influence of Sharia economic literacy on the investment decisions of the Muslim community. As Islamic financial systems grow in prominence, understanding how literacy in Sharia economic principles shapes individual financial behavior is crucial. The study adopts a quantitative approach using survey data collected from Muslim investors to assess their knowledge of Islamic financial concepts such as the prohibition of riba (interest), gharar (uncertainty), and maysir (gambling), as well as their awareness of Sharia-compliant investment options. The results indicate a positive and significant relationship between higher Sharia economic literacy and the tendency to make Sharia-compliant investment decisions. Respondents with greater knowledge were more likely to choose ethical investment instruments aligned with Islamic law, such as Islamic mutual funds, sukuk, and profit-sharing contracts. Conversely, those with lower levels of literacy often lacked the awareness to distinguish between conventional and Islamic financial products. The study concludes that enhancing Sharia economic literacy is vital for encouraging ethical and informed investment behavior in Muslim societies. It recommends that policymakers, financial educators, and Islamic financial institutions intensify efforts to promote financial literacy through accessible education, outreach programs, and transparent product information. This research contributes to the broader understanding of financial behavior within the context of faith-based economic systems and supports the development of a more inclusive and Sharia-compliant investment environment.