The Role of Artificial Intelligence in Advancing Islamic Banking Operations

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Summarized Fatawaa

Is it permissible to slaughter one animal as a sacrifice and an Aqeeqah (the sheep slaughtered on the seventh day from the child`s birth)?

It is impermissible to do so since each of them is slaughtered for a different reason.

A woman went for Hajj while pregnant, gave birth after leaving Arafat, and was unable to perform the Tawaf Al-Ifadah. If she cannot stay until she becomes pure from postpartum bleeding (Nifas) and she is from a distant country, what is she liable for?

This woman is advised to leave Mecca in a state of Ihram if the caravan departs. Once she reaches a distance where returning to Mecca is not feasible, she should consider herself in a state of being prevented (Muhsar). She may then exit Ihram, and she is required to offer a sacrificial animal (Blood) at that location. Additionally, she must perform a compensatory Hajj at the earliest possible opportunity. And Allah Almighty Knows Best.

My husband wanted to sell a piece of land that was his own, but his father insisted that he transfer the land in his (the father’s) name so that he could sell it at a higher price. Then, my husband and his father would split the price. After my father-in-law sold the land, he denied everything and refused to acknowledge my husband’s right. My father-in-law passed away a year ago, and my husband’s brothers divided the inheritance, refusing to acknowledge that this land was a trust held by their father for my husband until it was sold. Are they sinful for knowingly denying that the land belongs to my husband, and what is the ruling on praying against them?

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

Among the rights of the deceased upon their heirs are: preparing them for burial at death, settling their debts, returning people’s rights to them, executing their will, and then dividing their estate. What was mentioned in the question falls under the rights of others, even if they are among the heirs, and the deceased is not absolved of it unless it is returned to its rightful owners. This is because Allah, Almighty, forbids consuming others' wealth/properties unjustly. However, do not give up on seeking a solution by involving righteous and well - respected individuals who may have influence over them, in the hope that Allah guides them to goodness and correctness. As for supplicating against them, the prayer of the oppressed is not rejected, even if the oppressed person is not a Muslim. And Allah knows best.

My father passed away before my grandfather. Am I entitled to any share of my grandfather`s inheritance?

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.

According to Islamic courts, you are entitled to what is called obligatory bequest (The distribution of estate to grandchildren who has either lost a parent before the death of the grandparents). Therefore, if your grandfather left such bequest for you, then take that share or else it is more prudent to take nothing. And Allah The Almighty Knows Best.

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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

A pious man proposed to me and my father was hesitant in this regard because he is black, am I sinful if I accepted his proposal?

If the suitor is pious, color isn`t a drawback. However, try talking to your father kindly, so that he approves of your marriage with contentment, and that is better for you.

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.

Is Zakah (obligatory charity) due on rented property, and how is it calculated?

Zakah isn`t due on the rented property itself, but on the saved income from that property if it reached Nissab (minimum amount liable for Zakah), and a whole lunar year had lapsed over saving it.

Is a person who is in a state of Janabah (major ritual impurity due to having a marital intercourse, ejaculation, menstruation, and post-delivery impurities) sinful if he/she goes about his/her daily life activities in that state i.e. without making Ghusl (ritual bath ) ?

It goes without saying that a Muslim should always be in a state of ritual purity so as to be able to perform prayers and recite Quran. It is from Sunnah (Prophetic tradition) that a Muslim hastens to make Ghusl from Janabah, but he/she is not sinful in case he/she delayed that provided that he/she doesn`t miss prayers. However, it is permissible for him/her to go about their daily activities while in a state of Janabah, but had better bathe in order not to miss any prayer.