Measuring Islamic Financial Literacy
Sue L. T. McGregor & Amani K. Hamdan Alghamdi
What the paper says
Abstract Islamic financial literacy (IFL) concerns Muslims’ ability to manage their money while respecting Islamic law and ensuring Shariah compliance. IFL is a pressing concern in Muslim-majority countries where conventional financial literacy rates tend to be very low (<30%) (compared to the 60% global average) and IFL rates even lower (10%). Efforts to study and measure IFL are underdeveloped but growing. The paper begins by exploring what constitutes conventional financial literacy versus IFL, then profiles a detailed compendium of nearly 30 Islamic finance concepts inherent to measuring IFL – both permitted ( halal ) and forbidden ( haram ) (e.g., riba, gharar, takaful, zakat, sukuk , and faraid ). We identified and critiqued seven nascent initiatives (2016–2022) exemplifying efforts to develop IFL measures. Many initiatives only reached the development stage. Those that progressed to instrument validation yielded reliable measures, albeit seldom on a full range of Islamic finance concepts. Virtually no instruments were empirically tested. The paper culminated with recommendations for future research around studying this bourgeoning phenomenon.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.00 × 0.4 = 0.00 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.