Corruption remains a deeply entrenched
structural problem in many Islamic countries, despite religious teachings
emphasizing ethical behavior and integrity. This study examines the influence
of religion and socio-economic factors on corruption levels in 53 member states
of the Organisation of Islamic Cooperation (OIC) in 2020. Employing a
quantitative approach using Ordinary Least Squares (OLS) regression, it focuses
on two religious indicators: the proportion of Muslim population (religiosity)
and the status of Islam as the official state religion. The findings reveal
that religiosity does not significantly affect the Corruption Perceptions Index
(CPI). However, institutionalizing Islam as a state religion has a positive and
statistically significant impact on CPI, indicating that countries with an
official state religion tend to have lower corruption levels. This suggests
that when religion is formally embedded within the institutional framework, it
may enhance public governance. Furthermore, socio-economic variables such as
economic freedom, political stability, and GDP per capita also play a
significant role in promoting transparency and accountability. These findings
highlight the importance of institutional quality in combating corruption and
imply that beyond moral values, institutional reforms are crucial for
developing effective anti-corruption policies in Islamic countries.