The Role of Artificial Intelligence in Advancing Islamic Banking Operations

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Summarized Fatawaa

Is Zakah (obligatory charity) due on the money saved for marriage?

Zakah is due on the money saved for marriage if it reached the Nissab (minimum amount liable for Zakah), and a whole lunar year had lapsed over possessing it.

My father placed shares worth twenty dinars in one of the banks, and their value doubled to become five thousand dinars. When my father passed away, one of the scholars told us that it is permissible for us to take the money. What is the ruling on this money, considering that it comes from a bank and involves interest (Riba)?

Allah The Almighty Said (What means): "And if you repent, then for you is the principal of your wealth. You do not wrong, nor are you wronged." [Al-Baqarah/279]. This is the precautionary ruling regarding what you are asking about. You are entitled to the principal amount, and you should give the excess as charity to the poor and needy. If you are poor, you may take from it. And Allah The Almighty Knows Best.

Is everyone obligated to follow the fatwas of his country, and if we adopt the fatwas of scholars of other countries, is it considered a sin?

All perfect praise be to Allah, The Lord of The Wolrds and may His Peace and Blessings be upon our Prophet Muhammad and upon all of his family and companions.

It is permissible for the person who isn't specialized in Sharia sciences to apply the opinions of renowned scholars whom he trusts ,whether they be from his own country or not ,but if the scholars have different opnions regarding a certain issue/matter, then he must consult someone who is more knowledgeable than himself .It is preferable that you (the questioner) specify the case of your interest ,so that we could give you a more specific answer since some scholars deliver fatwas based on illogical/atypical opinions which should not be applied no matter what .And Allah The Exalted Knows Best.

Has Islam made it incumbent on us to give our children particular names?

No, it hasn`t, but it is desirable that we give them good names.

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The Role of Artificial Intelligence in Advancing Islamic Banking Operations

Author : Dr. Safwan Odaybat

Date Added : 03-01-2024

The Role of Artificial Intelligence in Advancing Islamic Banking Operations

All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

One of the emerging topics for which seminars and conferences are held, and attracts researchers to study and explore its potential developments across various fields and disciplines is the subject of Artificial Intelligence. This topic elicits concerns about its potentially destructive impacts on one hand, while on the other hand, it raises hopes and expectations for significant positive effects on improving the quality of life and serving humanity.

Before delving into explaining the impact of Artificial Intelligence on Islamic banking, it is essential to clarify the meaning of Artificial Intelligence and Islamic banking:

Artificial Intelligence can be defined as a set of technologies and software aimed at enabling computer systems to perform tasks that are typically considered important for human intelligence and facilitate operations associated with specific tasks.

Artificial Intelligence relies on data and algorithms to achieve specific objectives. Its applications encompass a diverse range of fields such as machine learning, natural language processing, robotics manufacturing, medical diagnosis, risk management, and more.

Islamic banking can be defined as a financial system based on the principles of Islamic law (Sharia). This system requires abstaining from practices such as usury (interest), uncertainty or speculation (Gharar), and injustice. It encourages financing and investment in ways that are in tune with Islamic values and principles.

The role of artificial intelligence in advancing the operations and services of Islamic banking is highlighted through the following:

1-Enhancing Efficiency and Risk Management:

Artificial intelligence can contribute to the development of Islamic banking by improving its operational efficiency through enhancing analysis processes and risk management. One possible means to achieve this is by utilizing machine learning to enhance credit assessment, identifying potential loans with greater accuracy and efficiency. Additionally, artificial intelligence will contribute to boosting employee efficiency by selecting suitable development, training, and educational methods tailored to their needs.

2-Development of Innovative Financial Products:

Artificial intelligence enables Islamic banking to develop innovative financial products that align with the principles of Islamic Sharia. For example, smart investment solutions can be developed based on financial analytics and Sharia-compliant guidelines.

3-Enhancement of Customer Experience:

Artificial intelligence can improve customer experiences in Islamic banking by providing personalized financial services tailored to the specific needs of customers. It can offer accurate investment guidance that aligns with customers' goals without conflicting with Islamic values.

4-Combatting Money Laundering and Terrorism Financing:

Artificial intelligence can contribute to enhancing financial integrity through intelligent operations that develop and improve the quality of monitoring financial transactions. Consequently, it can uncover all illicit and internationally prohibited activities, including money laundering and terrorism financing.

5-Facilitating Compliance with Islamic Sharia:

Artificial intelligence contributes to the development of Islamic banking by achieving better compliance with the rules of Sharia. This can be accomplished by providing guidance to financial professionals or by enhancing financial audit and monitoring processes.

In conclusion, the topic of the impact of artificial intelligence on Islamic banking in general requires precise scientific studies and research to highlight both the positive aspects and potential challenges. While artificial intelligence may contribute to enhancing the efficiency of financial services and their compliance with Sharia, ethical considerations and Islamic values must be taken into account in the application of this modern technological advancement.

Article References:

1-Book: "Artificial Intelligence and Its Impact on the Economy and Islamic Banking" by Dr. Rafiq Ali Suleiman.

2-Book: "Islamic Banking and Artificial Intelligence Technology: Challenges and Opportunities" by Dr. Mohammed Al Nuaimi.

3-Research Paper: "Artificial Intelligence Technology and Its Impact on Islamic Financial Services" by Researcher Ahmed Abdullah Al Salman.

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Summarized Fatawaa

Is it permissible for a wife to give her money to her family as a charity, or a gift without asking her husband, or seeking his consent?

The wife has the right to give her money as a charity, or a gift to her family, or to other people after consulting her husband out of respect, and this is the meaning of treating on footing of kindness and equity. Therefore, if he wanted to stop her from helping her family, then there is no harm in not telling him.

Is Zakah (obligatory charity) due on the Zakah money received by a poor person, and reached a Nissab (minimum amount liable for Zakah), and a whole lunar year had lapsed over having it in his possession?

Yes, the poor who possessed a Nissab for a whole lunar year is obliged to pay the Zakah due on that money even if it was given to him as a Zakah money in the first place. And Allah Knows Best.

If someone bought a car from an interest-based bank and then sold it to another person, does the second person bear any sin if they use the car's price to pay the installments owed to the bank?

When the buyer purchased the car, it became their property, and the price became their responsibility. The bank acts as the seller's agent for receiving the payment. Therefore, there is no sin on the second buyer, God willing, as long as the bank does not impose an increase in the amount if a payment is delayed. And Allah The Almighty Knows Best.

If the Prophet (PBUH) was an Arab citizen in 2009, born in an Arab country ruled by an Arab ruler, saw what was happening to Gaza, what would he (PBUH) have done?

All perfect praise be to Allah, The Lord of The Worlds. May His peace and blessings be upon our Prophet Muhammad and upon all of his family and companions.

Had the Prophet (PBUH) been amongst us, Muslims would have supported him, and then he would do whatever pleases the heart of every Muslim. And Allah The Almighty Knows Best.