INTEGRATING ISLAMIC ECONOMIC PRINCIPLES INTO SUSTAINABLE CONSTRUCTION DEVELOPMENT: EVIDENCE FROM PAKISTAN

Abstract

The construction sector plays a vital role in economic development; however, conventional construction practices often prioritize profit maximization over ethical responsibility, environmental stewardship, and social justice. This study explores construction development through the lens of Islamic economic principles, emphasizing the integration of Shariah-compliant finance, ethical resource utilization, and social welfare objectives. Grounded in the Islamic concepts of Maqasid al-Shariah, Maslahah (public interest), Adl (justice), and Amanah (trust), the paper highlights how construction activities can contribute to long-term economic sustainability while preserving environmental balance.

Methodologically, the study adopts a qualitative, conceptual research design based on an extensive review and synthesis of classical Islamic jurisprudence (Fiqh al-Mu‘amalat), contemporary Islamic economics literature, sustainability frameworks, and construction management studies. Relevant policy documents, standards, and case-based evidence from Islamic finance–driven construction projects are also analyzed to identify practical linkages between Islamic economic principles and sustainable construction practices.

The study discusses the application of Islamic financial instruments such as Murabaha, Ijarah, Musharakah, and Sukuk in construction projects, promoting risk-sharing, transparency, and avoidance of Riba (interest) and Gharar (excessive uncertainty). Additionally, it emphasizes efficient material usage, cost optimization, energy-conscious design, and labor rights protection as key elements of Islamically sustainable construction. The findings suggest that adopting Islamic economic principles in the construction industry not only enhances financial stability and ethical governance but also supports inclusive growth, affordability, and social well-being. The paper concludes that Islamic economics provides a comprehensive framework for aligning construction development with sustainable economic and moral objectives.