Conducting Islamic Financial Contracts Through Digital Platforms: Applications and Shari'ah Regulations
| Author | Saleh, Abdullah Basheer Geweizy | |
|---|---|---|
| metadata.dc.date.accessioned | 2026-09-20T15:46:34Z | |
| Publication date | 2024 | |
| Degree level | Master | |
| Abstract | Abstract: The rise of digital technology has revolutionized numerous sectors, including Islamic banking. This research explores the integration of Islamic financial contracts within digital platforms, examining the practical applications and the adherence to Shari'ah regulations. The study addresses a critical gap in the current literature by analyzing how Islamic finance principles, rooted in Shari'ah law, can be effectively implemented digitally while maintaining Shari'ah and regulatory compliance and promoting financial inclusion. The study begins by outlining the fundamental principles of Islamic finance, which prohibits interest (Riba), excessive uncertainty (Gharar), and gambling (Maysir), and requires profit and loss sharing (PLS) as well as asset-backing transactions. These principles are discussed in the context of Islamic digital contracts to understand their compatibility and potential challenges. A comprehensive review of selected digital platforms in Bahrain offering Islamic financial contracts is conducted, focusing on their structures, operations, and Shari'ah compliance mechanisms. Methodologically, the thesis employs a mixed-methods approach, combining descriptive analysis and qualitative data. Personal interviews with industry experts and Islamic finance specialists reveal practical structures and digitally applied contracts. The descriptive analysis illustrates structures and practical digital implementation of the applied Islamic financial contracts over digital platforms. The qualitative analysis focuses on the alignment of digital financial implementation with Shari'ah principles, identifying key compliance issues and innovative solutions. Findings indicate that while digital platforms offer significant potential for the growth of Islamic finance by enhancing accessibility and Shari'ah-compliance implementation, they also pose unique challenges such as Shari'ah, legal/legislative, and technology challenges. The study highlights successful models of digital platforms that effectively integrate digitalization with Shari'ah compliance structures, such as the Safaghat crowdfunding company which adapts investment agency and commodity Murabaha contracts digitally through the platform. Furthermore, the research underscores the importance of regulatory frameworks in supporting the development of digital Islamic finance. It calls for enhanced collaboration between technology developers, Islamic financial institutions (IFIs), and Shari'ah boards to ensure that digital Islamic financial products comply with Shari'ah regulations and meet the evolving needs of consumers by keeping pace with contemporary financial developments. The thesis concludes with some key digitalization challenges and recommended solutions to minimize their impact. This thesis contributes to the academic discourse by bridging the gap between traditional Islamic finance and modern digital innovations, offering insights and practical Indicators for the future development of Shari'ah-compliant digital financial systems. | |
| metadata.dc.identifier.other | https://digitalrepository.uob.edu.bh/id/42c7f825-5c30-4138-ac7b-d450a8ca0381 | |
| metadata.dc.identifier.other | Drupal node 2858 | |
| metadata.dc.identifier.other | https://digitalrepository.uob.edu.bh/en/dar/conducting-islamic-financial-contracts-through-digital-platforms-applications-and-shariah | |
| metadata.dc.identifier.uri | http://165.227.56.122/handle/123456789/6481 | |
| Language | en | |
| Link | https://digitalrepository.uob.edu.bh/en/_flysystem/fedora/2025-03/2025-conducting-islamic-financial-contracts-through-digital-platforms-applications-and-sharia.pdf | |
| Title | Conducting Islamic Financial Contracts Through Digital Platforms: Applications and Shari'ah Regulations | |
| Type | Master's Thesis |
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