This study aims to propose a practical model for sustainable economic development in Iran, emphasizing the components of Islamic economics. Iran faces critical challenges, including heavy reliance on oil revenues, chronic inflation, double-digit unemployment—particularly among youth—economic corruption, severe air pollution, depletion of groundwater resources, and high greenhouse gas emissions from fossil fuel consumption. Islamic economics, with its focus on ethical principles in production, consumption, and wealth distribution, social justice, reduction of inequalities, equitable resource allocation, and respect for human rights, provides a comprehensive, human-centered, and indigenous framework for achieving sustainable development. The proposed model identifies, prioritizes, and analyzes causal relationships among key components, offering practical policy recommendations to reduce oil dependency, strengthen domestic production, improve governance, and preserve natural resources. This model can serve as a reference for policymakers in alignment with the Islamic-Iranian model of progress and sustainable development goals.
The research is applied and action-oriented, employing a mixed-method (qualitative-quantitative) and multi-stage approach. The theoretical population consisted of experts in Islamic economics and sustainable development, with purposive and judgmental sampling. Fifteen faculty members with doctoral degrees and associate or full professorship ranks were selected. In the first stage, over 27 initial components were identified through systematic literature review and semi-structured interviews with experts, continuing until theoretical saturation. Data were coded and transformed into main themes using thematic analysis. In the second stage, fuzzy Delphi method with a five-point Likert scale and a threshold of 0.7 was applied in three rounds to screen components, resulting in 10 key factors. In the third stage, fuzzy DEMATEL technique was used to examine causal relationships. The direct-relation matrix was formed based on experts’ fuzzy opinions, linearly normalized, and the total-relation matrix was calculated. Indices of influence (D), dependence (R), prominence (R+D), and net effect (R–D) were extracted to classify components into cause and effect groups.
Findings confirmed 10 key components: establishing sustainable financial and investment frameworks, developing a resilient economy and supporting domestic production, promoting green Islamic financial instruments, empowering local communities and cooperatives, enhancing energy efficiency and renewable energy development, advancing sustainable public transportation and reducing urban pollution, promoting Islamic-Iranian lifestyle in consumption patterns, strengthening religious-ethical education related to sustainability, enhancing good governance, and promoting transparency, anti-corruption measures, and systematic accountability. Fuzzy DEMATEL analysis identified four components with positive net effects as primary causal factors: 1. establishing sustainable financial and investment frameworks (highest interaction intensity), 2. transparency, anti-corruption, and systematic accountability, 3. developing a resilient economy and supporting domestic production, 4. enhancing good governance. Effect components included promoting green Islamic financial instruments, empowering local communities, improving energy efficiency, developing sustainable transportation, promoting Islamic-Iranian lifestyle, and strengthening religious-ethical education. Causal relationships demonstrated that focusing on financial infrastructure, transparency, and resilient economy reinforces other sustainability dimensions in a chain reaction.
This study provides a practical framework for policymakers to accelerate sustainable development by prioritizing causal components. Strengthening Islamic financial systems, improving governance, reducing oil dependency through support for domestic production and cooperatives, and integrating Islamic principles into education and consumption culture can enhance economic resilience. Practical recommendations include enacting comprehensive green sukuk legislation, launching a digital transparency system, allocating resilient budgets for knowledge-based industries and cooperatives, and implementing sustainability education programs. This model not only addresses Iran’s challenges but also offers an indigenous framework for Islamic countries. Future research can validate the model using empirical quantitative data.