Analysis of the Implementation of Circular Economy from an Islamic Economic Perspective

Abstract

Environmental degradation, climate change, increasing waste production, and excessive exploitation of natural resources have become major global challenges resulting from the conventional linear economic model. In response to these issues, the circular economy has emerged as a sustainable economic approach that emphasizes waste reduction, recycling, reuse of materials, and efficient resource management. This research aims to analyze the implementation of the circular economy from an Islamic economic perspective and examine its compatibility with Islamic values related to sustainability, justice, and environmental responsibility. This study uses a qualitative approach with a descriptive-analytical method through library research. Data were collected from books, scientific journals, research reports, Qur’anic verses, Hadith, and other relevant literature related to circular economy, Islamic economics, and sustainable development. The collected data were analyzed using content analysis techniques to identify the relationship between circular economy principles and Islamic economic teachings. The results show that the circular economy is highly compatible with Islamic economic principles, particularly the values of tauhid, khilafah, maslahah, ‘adl, and tawazun. Islam encourages environmental stewardship, responsible consumption, social justice, and prohibits wastefulness (israf) and excessive consumption (tabdzir), which align closely with circular economy objectives. However, challenges remain, including low public awareness, limited government support, inadequate green technology, and weak policy integration. Despite these obstacles, integrating circular economy principles with Islamic economics can support sustainable development while maintaining environmental balance and ethical values in accordance with Islamic teachings.