1st Edition

Artificial Intelligence and Islamic Finance Practical Applications for Financial Risk Management

    262 Pages 16 B/W Illustrations
    by Routledge

    262 Pages 16 B/W Illustrations
    by Routledge

    This book provides a systematic overview of the current trends in research relating to the use of artificial intelligence in Islamic financial institutions (IFIs), across all organization of Islamic cooperation (OIC) countries.

    Artificial Intelligence and Islamic Finance discusses current and potential applications of artificial intelligence (AI) for risk management in Islamic finance. It covers various techniques of risk management, encompassing asset and liability management risk, credit, market, operational, liquidity risk, as well as regulatory and Shariah risk compliance within the financial industry. The authors highlight AI’s ability to combat financial crime such as monitoring trader recklessness, anti-fraud and anti-money laundering, and assert that the capacity of machine learning (ML) to examine large amounts of data allows for greater granular and profound analyses across a variety of Islamic financial products and services. The book concludes with practical limitations around data management policies, transparency, and lack of necessary skill sets within financial institutions. By adopting new methodological approaches steeped in an Islamic economic framework (e.g., analysing FinTech in the context of Shariah principles and Islamic values), it devises practical solutions and generates insightful knowledge, helping readers to understand and explore the role of technological enablers in the Islamic finance industry, such as RegTech and artificial intelligence, in providing better and Shariah-compliant services to customers through digital platforms.

    The book will attract a wide readership spanning Shariah scholars, academicians, and researchers as well as Islamic financial practitioners and policy makers.

    1. Introduction: Artificial Intelligence and Islamic Finance

    Adel Sarea, Ahmed Elsayed and Saeed A. Bin-Nashwan

    Part I Artificial Intelligence and Governance

    2. Understanding Governance Compliance for RegTech

    Khakan Najaf and Osama F. Atayah

    3. Waqf Efficiency and Its Transformative Technology in Improving Waqf System in Malaysia

    Dahlia Ibrahim, Haslindar Ibrahim and Tajul Ariffin Masron

    4. Islamic FinTech and Artificial Intelligent (AI) for Assessing Creditworthiness

    Muhammad Anshari, Mia Fithriyah, Petr Polak, & Abdur Razzaq

    5. Managing Islamic Financial Risks and New Technological Risks

    Hazik Mohamed

    6. Exploring the Relationship between Artificial Intelligence and Islamic Finance

    Noor Ul Hadi, Asiya Sohail and Muhammad Ali Raza

    Part II Artificial Intelligence and Fintech

    7. Islamic Financial Technology (Fintech) Applications in Indonesia

    Ahmad Rafiki and Atiqoh Nasution

    8. Artificial Intelligence (AI) in Islamic Finance and Banking: An International Evidence

    Adel Sarea, Mustafa Raza Rabbani, Mustafa Raza Rabbani

    9. Artificial intelligence, financial system, and Islamic finance: addressing issues prior to technology adoption

    Sulaiman Abdullah Saif Al-Nasser

    10. Applications of Financial Technology in Islamic Finance: A Systematic Bibliometric Review

    Basheer Hussein Motawe Altarturi, Hamza H.M. Altarturi and Anwar Hasan Abdullah Othman

    Part III Artificial Intelligence, Blockchain and IoT

    11. Harnessing Blockchain for the Development of Islamic Social Finance: An Emphasis on Waqf

    Mohamed Hamza Ghaouri, Salina Bt. Kassim, Anwar Hasan Abdullah Othman and Hamid Rashid

    12. Artificial Intelligence, Financial Risk Management, and Islamic Finance

    Asad Iqbal Chowdhury Mohammad Shamsu Uddin

    13. Rise of Islamic Robo Advisory in the 21st Century

    Areeba Khan and Farah Hashim

    14. Risk Mitigation for Cash Waqf collection using Financial Technology and Internet of Thing

    Habeebullah Zakariyah, Anwar Hasan Abdullah Othman, Romzie Rosman and Aminu Sikiru Olanrewaju

    15. Disrupting Islamic International Trade Finance Using the Blockchain Technology

    Auwal Adam Sa’ad, Rizal Mohd Nor, Engku Rabiah Adawiah Bt Engku Ali and Salina Bt. Kassim


    Adel M. Sarea is an associate professor of accounting and economics at Ahlia University, Kingdom of Bahrain.

    Ahmed H. Elsayed is an associate professor of financial economics at Durham University, UK.

    Saeed A. Bin-Nashwan is an assistant professor at Universiti Utara Malaysia, Malaysia.