The Involvement of the Sharia Supervisory Board in the Design and Evaluation of Sharia Financial Products

Abstract

Product innovation is a vital element for the sustainability of Islamic Financial Institutions (IFIs) amidst global financial industry competition. However, the complexity of modern financial products often poses Sharia non-compliance risks. The Sharia Supervisory Board (SSB) plays a central role as a gatekeeper to ensure sharia integrity. This study aims to systematically analyze the literature regarding SSB involvement in two crucial phases: design (ex-ante) and evaluation (ex-post) of Islamic financial products. Using the Systematic Literature Review (SLR) method, this study examines 15 selected articles published between 2020 and 2025. The results indicate that effective SSB involvement cannot be merely passive (providing opinions at the end) but must be active from the ideation and contract design stages to minimize product failure. Furthermore, post-launch evaluation functions are often hindered by uneven hybrid competencies (fiqh and finance). The study concludes the need for regulations mandating SSB involvement in product development teams and the enhancement of risk-based sharia audit capacities.