This article discusses the profit-sharing system as one of the main pillars in Islamic economics, focusing on its ideal concept, implementation, challenges, and development opportunities in Islamic financial institutions in Indonesia. This system is based on the principles of justice, partnership, and shared responsibility through mudharabah and musyarakah contracts. Although normatively acknowledged and regulated by Islamic finance fatwas and regulations, its practical application still faces various obstacles such as low Islamic financial literacy, weak supervision, and the dominance of fixed-margin-based products. Nevertheless, digital technology development, the potential of the MSME sector, and the strengthening of Islamic financial regulations and education provide significant opportunities to promote transformation toward a more inclusive and just financial system. Therefore, synergy among financial institutions, regulators, and society is required to optimally realize the implementation of the profit-sharing system in Islamic economic practices.

This study examines the ways in which digitalization has contributed to the increased competitiveness of MSMEs in Medan City, in light of legislative measures imposed by the Medan City Government. Based on the facts that micro, small, and medium-sized enterprises (MSMEs) have been forced to undertake digital changes due to the pandemic, this study examines the importance in digitalization as a strategy for MSMEs in this era of the digital economy. Small, medium, and micro-sized enterprises (MSMEs) in Medan City may benefit from the city government's digitization initiatives, which is why this study seeks to investigate them. The method used is the Systematic Literature Review (SLR), which involves looking at academic articles and secondary materials about the digitalization of MSMEs in Medan City. The research found that digitization has various benefits for MSMEs, such as increasing their competitiveness, streamlining their operations, and accessing new markets. Mentorship applications, training, and the incorporation of micro, small, and medium companies (MSMEs) in online platforms or local e-Catalogs are examples of digitalization-supportive policies implemented by the Medan City Government that have been essential in achieving success. The results of this research highlight the importance of partnerships between government departments, MSMEs, and other stakeholders in improving MSMEs' digital skills so that they can compete globally.