The Role of Artificial Intelligence in Developing the Islamic Economy and Islamic Banking: Toward a Digital Model for Achieving Efficiency and Justice

Abstract

This study aims to examine the role of Artificial Intelligence (AI) in advancing the Islamic economy and Islamic banking, and to explore how intelligent technologies can be integrated within a Sharia-compliant financial framework that promotes efficiency, transparency, and sustainability. The significance of this research arises from the rapid global digital transformation in the financial sector, which necessitates the modernization of Islamic financial tools and the development of effective Sharia supervisory mechanisms capable of keeping pace with technological innovation.

The research adopts descriptive-analytical and comparative methodologies through analyzing recent literature and reviewing successful international experiences such as Malaysia, the United Arab Emirates, and Bahrain. The findings reveal that AI presents vast opportunities for Islamic banks, particularly in risk management, creditworthiness assessment, service quality enhancement, and the development of Islamic financial instruments such as sukuk, murabaha, and musharakah. The study also demonstrates the compatibility of AI with the objectives of Sharia (Maqasid al-Sharia), especially through the creation of intelligent Sharia auditing systems capable of monitoring financial transactions in real time.

Moreover, the research concludes that digital Sharia supervision represents a transformative shift in Islamic financial governance and that successful digital transformation in Islamic countries requires robust Sharia, technical, and regulatory infrastructures. The study proposes an integrated AI-based model for Islamic banks, consisting of a smart Sharia database, an automated Sharia compliance engine, an intelligent finance platform, and a real-time economic analytics unit.

The research concludes with several recommendations, most importantly the need to establish Sharia-compliant regulations for AI in Islamic finance, develop smart compliance units, introduce training programs that combine technical and Sharia knowledge, and support Islamic FinTech innovation. The study affirms that the Islamic economy is capable of achieving a significant qualitative leap by adopting AI technologies, thereby enhancing sustainable development and financial justice across the Muslim world.