Sharia Smart Contract Framework: Normative Reconstruction of Islamic Contract Law in Digital Finance, the Halal Economy, and Cross-Border Trade

Abstract

Ideally, digital finance is expected to facilitate transactions that are efficient, transparent, and equitable; however, in reality, the implementation of smart contracts within the Islamic economy still faces challenges related to contractual intent, mutual consent, digital gharar, legal liability, and cross-border dispute resolution, which have not been fully accommodated within the Sharia legal framework. This study aims to formulate a Sharia Smart Contract Framework as a reconstructed model of Islamic contract law that aligns with the architecture of digital transactions. The methodology employed is a normative-juridical approach with comparative regulatory analysis of Islamic legal sources and international Sharia financial standards. The findings indicate significant doctrinal and regulatory gaps, particularly concerning code opacity, fragmented liability, and the absence of Sharia-compliant digital dispute resolution mechanisms. These results contribute by offering an integrated legal–technical framework that strengthens legal certainty, Sharia compliance, and the principles of justice and public welfare in the governance of digital finance and cross-border halal trade