Navigating Economic Pursuits and Geo-Political Identity: A Critical Survey of a Minority Socio-Economic Resistance

This paper investigates how economic inequality shaped Islamic economics as a form of socio-political resistance and identity formation. Using a conceptual analysis approach, it surveys the foundations of Islamic economics within its political context, categorising the literature into four key themes related to minority economic identity and identity theory. The paper explores the clash between Homo Economicus and Homo Islamicus, highlighting the challenges Muslims face in balancing economic pursuits with preserving their economic identity. It examines the role of economic autonomy in empowering marginalised communities and the impact of Islamic economics on these dynamics. Furthermore, the paper discusses the policy implications of the evolving Islamic geo-economic identity in the UK. Migrants from India and Pakistan have established a strong geo-economic identity, embedding Islamic economic principles within Western economies. This transformation has positioned the UK as a leading hub for Islamic finance, prompting significant changes in its legal and regulatory frameworks to support inclusive economic growth. The UK’s experience serves as a model for other Western countries integrating Islamic finance. The paper provides insights into the interplay between Islamic economics, individual identity, and economic pursuits, contributing to theory by identifying self-categorisation as crucial in economic identity formation and its implications for the Islamic finance industry.