Skip to main content
SpringerLink
Log in

The Emergence of Islamic Fintech and Bahrain: Prospect for Global Financial Sectors

  • Chapter
  • First Online:
Artificial Intelligence-Augmented Digital Twins

Part of the book series: Studies in Systems, Decision and Control ((SSDC,volume 503))

  • 349 Accesses

Abstract

It is an exciting to study the future prospects of financial technology in Islamic Finance. Technology and automation have moved to many sectors including the finance sector. In Islamic finance sector it is still developing, and the future of Islamic finance industry looks promising with this innovation. “Artificial intelligence, machine learning, robotic process automation, the Internet of Things, cloud computing, big data, and blockchain” are a few of the technologies employed in the banking industry. in addition to financial results FinTech apps are being used in Islamic finance to offer financial goods and services such as lending, investing, invoicing, risk evaluation, data analytics, and fund management to increase the sustainability and productivity of the sector and society. The Kingdom of Bahrain, is the hoariest and most recognized financial center in GCC, has used its extensive banking expertise to grow a modern fintech ecosystem and promote fintech success, both in the GCC and around the globe. This chapter attempt to highlight new challenges and prospects for Islamic fintech such as offering innovative goods and services, greater regulatory compliance, improved client accessibility, and considerable cost reductions are some of the important areas that Islamic fintech must focus on in order to remain sustainable. These obstacles include integrating Fintech and overcoming them. In the digital age clients demand services in digital mode particularly in the banking sector and fintech has been filling up the gaps. Islamic fintech cannot elude the fintech revolt in the digital age. According to the study's findings, fintech could have an impact on the future of Islamic banking and finance by delivering new and creative financial services that are more effective and less expensive.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 219.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  1. Abdeldayem, M.M., Aldulaimi, S.H.: Predicting crowdfunding economic success in the gulf cooperation council. Int. J. Eng. Bus. Manag. 14, 184797902210744 (2022). https://doi.org/10.1177/18479790221074477

    Article  Google Scholar 

  2. Abdeldayem, M.M., Dulaimi, S.H.A.L., Nekhili, R.: Cryptocurrency as a Fin Tech instrument and Islamic finance: The GCC perspective. J. Xi’an Univ. Arch. Technol. XII(II), 2736–2747 (2020) https://www.xajzkjdx.cn/gallery/226-feb2020.pdf

  3. Abojeib, M., Habib, F.: Blockchain for Islamic social responsibility institutions. In: Rafay, A. (ed.) FinTech as a Disruptive Technology for Financial Institutions, pp. 221–240. IGI Global (2019) https://doi.org/10.4018/978-1-5225-7805-5.ch010

  4. Al-Sartawi, A.: Social media disclosure of intellectual capital and firm value. Int. J. Learn. Intellect. Cap. 17(4), 312–323 (2020)

    Google Scholar 

  5. Al-Sartawi, A. (ed.): The big data-driven digital economy: Artificial and computational intelligence. In: Kacprzyk, Janusz (ed.) Studies in Computational Intelligence, vol. 974. Springer International Publishing.\Al-Sartawi, A., (2019), Assessing the Relationship between Information Transparency through Social Media Disclosure and Firm Value. Manag. Account. Rev. 18(2), 1–20 (2021).

    Google Scholar 

  6. Aslam, S., Elmagrhi, M.H., Rehman, R.U., Ntim, C.G.: Environmental management practices and financial performance using data envelopment analysis in Japan: The mediating role of environmental performance. Bus. Strateg. Environ. 30(4), 1655–1673 (2020). https://doi.org/10.1002/bse.2700

    Article  Google Scholar 

  7. Banker, T.A.: Central Bank of Bahrain announces landmark regulatory sandbox for fintech startups | The Asian Banker. The Asian Banker. (2017) https://www.theasianbanker.com/press-releases/central-bank-of-bahrain-announces-landmark-regulatory-sandbox-for-fintech-startups

  8. Biancone, P. Pietro, Secinaro, S., Kamal, M.: Crowdfunding and fintech: Business model Sharia compliant. Eur. J. Islam. Financ. 12, 1–9 (2019) https://doi.org/10.13135/2421-2172/3260

  9. Bizbahrain: CBB launches a secure private network for Financial Institutions. Bizbahrain (2018) https://www.bizbahrain.com/cbb-launches-secure-private-network-financial-institutions/

  10. Boukhatem, J., Ben Moussa, F.: The effect of Islamic banks on GDP growth: Some evidence from selected MENA countries. Borsa Istanbul Rev. 18(3), 231–247 (2018). https://doi.org/10.1016/j.bir.2017.11.004

    Article  Google Scholar 

  11. Chong, F.H.L.: Enhancing trust through digital Islamic finance and blockchain technology. Qual. Res. Financ. Mark. 13(3), 328–341 (2021). https://doi.org/10.1108/QRFM-05-2020-0076

    Article  Google Scholar 

  12. EDB: Innovation in payment services focus of panel discussion in Bahrain—Invest in Bahrain. EDB BAHRAIN (2016) https://www.bahrainedb.com/latest-news/innovation-in-payment-services-focus-of-panel-discussion-in-bahrain

  13. Elasrag, H.: Munich Personal RePEc Archive Blockchains for Islamic finance: Obstacles Challenges. (2019) https://mpra.ub.uni-muenchen.de/92676/

  14. Findexable. The Global Fintech Index (2020) https://findexable.com/

  15. Hannoon, A., Abdalla, Y., Al-Sartawi A., Khalid, A.: Board of directors composition and social media financial disclosure: The case of the United Arab Emirates. In: Musleh Al-Sartawi, A.M.A. (ed.) The Big Data-Driven Digital Economy: Artificial and Computational Intelligence. Studies in Computational Intelligence, vol. 974. Springer, Cham (2021)

    Google Scholar 

  16. Iqbal, B.A., Sami, S.: Role of banks in financial inclusion in India. Contaduría y Administración 62(2), 644–656 (2017). https://doi.org/10.1016/j.cya.2017.01.007

    Article  Google Scholar 

  17. Iqbal, Z., Lewis, M.: An Islamic perspective on governance. Edw. Elgar Publ. (2009). https://doi.org/10.4337/9781848449220

    Article  Google Scholar 

  18. Irfan, H., Ahmed, D. (2018). Fintech: The opportunity for Islamic finance. In: Fintech in Islamic Finance: Theory and Practice, pp. 19–32. Taylor and Francis. https://doi.org/10.4324/9781351025584-2

  19. Kaladari, N., Al-Sartawi, A.: The capabilities of using artificial intelligence for value-added. In: Musleh Al-Sartawi, A.M.A., Razzaque, A., Kamal, M.M. (eds.) From the Internet of Things to the Internet of Ideas: The Role of Artificial Intelligence. EAMMIS 2022. Lecture Notes in Networks and Systems, vol. 557. Springer, Cham (2023)

    Google Scholar 

  20. Najjar, M., Alsurakji, I.H., El-Qanni, A., Nour, A.I.: The role of blockchain technology in the integration of sustainability practices across multi-tier supply networks: implications and potential complexities. J. Sustain. Financ. Invest., 1–19 (2022) https://doi.org/10.1080/20430795.2022.2030663

  21. Rabbani, M.R., Hassan, M.K., Hudaefi, F.A., Shaikh, Z.H.: Islamic finance and cryptocurrency: A systematic review. In: FinTech in Islamic Financial Institutions, pp. 279–306. Springer International Publishing (2022) https://doi.org/10.1007/978-3-031-14941-2_14

  22. Shaikh, Z.H., Sarea, A., Irfan, M.: Islamic banking strategies in the world of Fintech: Success story of Bahrain. In: Artificial Intelligence for Sustainable Finance and Sustainable Technology, pp. 97–104 (2022) https://doi.org/10.1007/978-3-030-93464-4_10

  23. Todorof, M.: Shariah-compliant FinTech in the banking industry. ERA Forum 19(1), 1–17 (2018). https://doi.org/10.1007/s12027-018-0505-8

    Article  Google Scholar 

  24. Vasile, V., Panait, M., Apostu, S.A.: Financial inclusion paradigm shift in the postpandemic period. Digital-divide and gender gap. Int. J. Environ. Res. Public Health 18(20) (2021) https://doi.org/10.3390/ijerph182010938

  25. Zavolokina, L., Dolata, M., Schwabe, G.: FinTech transformation: How IT-enabled innovations shape the financial sector. In: Enterprise Applications, Markets and Services in the Finance Industry, pp. 75–88 (2017) https://doi.org/10.1007/978-3-319-52764-2_6

Download references

Author information

Authors and Affiliations

  1. Department of Finance and Accounting, College of Business Administration, Kingdom University, Isa Town, Kingdom of Bahrain

    Zakir Shaikh

  2. NSB Academy Business School, Bangalore, India

    Mohammad Irfan

  3. Department of Accounting and Economics, College of Business and Finance, Ahlia University, Manama, Kingdom of Bahrain

    Adel Sarea

  4. GITAM School of Business, GITAM Deemed to Be University, Visakhapatnam, Andhra Pradesh, India

    Rashmi Ranjan Panigrahi

Authors
  1. Zakir Shaikh
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Mohammad Irfan
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Adel Sarea
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Rashmi Ranjan Panigrahi
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Zakir Shaikh .

Editor information

Editors and Affiliations

  1. College of Business and Finance, Ahlia University, Manama, Bahrain

    Abdalmuttaleb M. A. Musleh Al-Sartawi

  2. Accounting and Finance, Liwa College of Technology, Abu Dhabi, United Arab Emirates

    Anas Ali Al-Qudah

  3. Department of Computerized Financial and Banking Science, Business and Economics Faculty, Palestine Technical University—Kadoori, Tulkarm, Palestine, State of

    Fadi Shihadeh

Rights and permissions

Reprints and permissions

Copyright information

© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Shaikh, Z., Irfan, M., Sarea, A., Panigrahi, R.R. (2024). The Emergence of Islamic Fintech and Bahrain: Prospect for Global Financial Sectors. In: Musleh Al-Sartawi, A.M.A., Al-Qudah, A.A., Shihadeh, F. (eds) Artificial Intelligence-Augmented Digital Twins. Studies in Systems, Decision and Control, vol 503. Springer, Cham. https://doi.org/10.1007/978-3-031-43490-7_52

Download citation

  • DOI: https://doi.org/10.1007/978-3-031-43490-7_52

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-43489-1

  • Online ISBN: 978-3-031-43490-7

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation