Digital Halal Certification, Fiqh Muamalah and Islamic Commercial Law in the Global Trade Era

Abstract

Purpose – This study examines the digital transformation of halal certification from the perspective of fiqh muamalah, focusing on how emerging technologies, including blockchain, the Internet of Things (IoT), and artificial intelligence (AI), can be incorporated into halal governance while remaining consistent with maqashid al-shariah. The study addresses structural limitations in conventional paper-based certification systems, particularly fragmented standards, weak traceability, and risks of fraudulent practices, within the rapidly expanding global halal industry. Design/methods/approach – The study employs a normative-qualitative legal research approach that combines doctrinal analysis of fundamental principles of fiqh muamalah with a literature review of contemporary scholarship on halal technology and digital certification. The analysis evaluates digital certification mechanisms against key Islamic commercial principles, including shidq (truthfulness), amanah (trustworthiness), and the prevention of gharar (uncertainty), while also considering the role of collective juristic reasoning (ijtihad jama'i) in technological implementation. Findings – The findings indicate that blockchain, IoT, AI, and related digital certification mechanisms are broadly compatible with fundamental muamalah principles when they enhance transparency, traceability, accountability, and the prevention of uncertainty. However, technological automation cannot replace substantive religious judgment in determining halal status. Human juristic oversight therefore remains essential. The study also identifies persistent challenges in cross-border halal recognition arising from differences among national and international standards, including those implemented by Indonesia's BPJPH, Malaysia's JAKIM, and the OIC/SMIIC framework. These differences demonstrate that technological interoperability alone cannot resolve underlying fiqh-based divergences. Research implications/limitations – The study highlights the need to integrate technological innovation with institutional and Shariah governance mechanisms. Digital halal certification requires not only interoperable technological infrastructure but also greater harmonisation of standards, regulatory coordination, and continuous scholarly supervision. As a normative-qualitative study based primarily on doctrinal sources and existing literature, its conclusions do not empirically assess the technical performance, implementation costs, or user acceptance of specific digital certification systems. Future research should therefore incorporate empirical and comparative studies of digital halal certification practices across jurisdictions. Originality/value – This study contributes to Islamic legal scholarship and halal governance by developing a Shariah-compliant conceptual framework for the digital transformation of halal certification. It proposes an integrated model in which blockchain and smart contracts support automated compliance monitoring and traceability, while AI and IoT facilitate data-driven verification, without displacing the authority of qualified ulama and collective ijtihad. The framework positions digital technology not as a substitute for Islamic legal judgment, but as a governance instrument that can strengthen the transparency, integrity, and global interoperability of the halal ecosystem.