The Role of Education in Strengthening Islamic Economic Awareness: A Pathway to Ethical and Inclusive Development

The rapid expansion of the Islamic finance industry has not always been accompanied by adequate Islamic economic literacy among society, creating a gap between institutional development and ethical economic awareness. Education therefore, plays a strategic role in strengthening value-based economic understanding grounded in Islamic principles. This study aims to analyze how education contributes to the development of Islamic economic literacy and how such literacy shapes ethical economic awareness that supports inclusive development. This research adopts an interpretivist–constructivist paradigm using a qualitative multi-site design conducted in three Islamic-based educational institutions implementing Islamic economics in their curriculum. Data were collected from eighteen participants, consisting of educators, students, and curriculum managers through in-depth interviews, classroom observations, and document analysis. The data were analyzed using a constructivist thematic approach to explore the process of value internalization within pedagogical interactions. The findings reveal a sequential pathway in which value-based pedagogical interaction fosters multidimensional Islamic economic literacy encompassing cognitive, affective, and normative dimensions. This literacy subsequently develops ethical economic awareness characterized by moral reasoning, critical evaluation of interest-based financial practices, and a commitment to justice-oriented economic behavior. Furthermore, ethical awareness encourages an inclusive economic orientation reflected in support for cooperative models, profit-sharing practices, and community-based economic initiatives. The study proposes a conceptual framework linking educational meaning-making processes, Islamic economic literacy, ethical consciousness, and inclusive development. These findings highlight the importance of dialogical, reflective, and context-based learning approaches in Islamic economic education to move beyond informational teaching toward value-driven learning that promotes socially responsible economic behavior.