Measuring Muslim Welfare: A Falah-Based Index

The concept of welfare remains a subject of ongoing debate, and the prevailing frameworks for assessing welfare need to be adapted to align with Islamic principles. This study delves into the concept of falah, a state of well-being rooted in Islamic values, to develop a 'falah welfare index' and analyze it within a Muslim community in Langkat Regency, Indonesia. Additionally, the study explores the variables that influence falah welfare. Employing a mixed-methods approach with an exploratory sequential design, this research qualitatively constructs a falah welfare index and quantitatively measures both community welfare levels and the impact of predictor variables on the criterion variable of falah welfare. A key finding of this study is the establishment of a falah welfare index comprising three categories: fakir (extreme poverty), miskin (poor), and falah (well-being). Moreover, the results reveal a positive influence of religiosity, Islamic work ethics, Islamic consumption ethics, Islamic investment patterns, and Islamic wealth management on falah welfare. The implications of this research offer a novel approach to measuring welfare within Muslim societies and solidify the concept of falah as a cornerstone of welfare evaluation from an Islamic economic perspective.============================================================