AI Roadmap Drawn for Islamic Financial Institutions in 22 Countries

By Dawan Africa - Reporter

U.A.E., 4 December 2025 - The Islamic Development Bank Institute (IsDBI) and the Arab Monetary Fund (AMF) have successfully concluded a specialised training programme entitled “The Role of Artificial Intelligence in Fostering the Islamic Financial Industry.”

Held from 24 November to 28 November 2025 at the AMF headquarters in Abu Dhabi, United Arab Emirates, the five-day initiative marked the region’s first comprehensive integration of artificial intelligence and Islamic finance.

The programme forms part of a broader strategic collaboration between the two institutions, designed to bolster the stability and advancement of the Islamic finance sector across their 22 shared member countries.

IsDBI trainers Dr Hilal Houssain and Dr Mohammed Ayyash guided 32 professionals -from central banks and financial institutions throughout the Arab world participated - in those intensive training sessions.

Participants explored both theoretical foundations and practical applications of AI, including concepts of artificial intelligence, machine learning, neural networks, and big data.

Real-world uses within Islamic banking were examined in depth, such as risk analysis, financing application evaluation, and fraud detection, with consistent emphasis on alignment with Shari’ah rulings and governance standards.

A highlight was the presentation of IsDBI’s inaugural AI Hackathon in Islamic Finance, which aimed to convert Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) accounting standards into smart digital solutions, thereby enhancing efficiency, transparency, and Shari’ah compliance in accounting practices.

The curriculum also tackled critical challenges surrounding data quality, bias, transparency, and interpretability.

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Ethical considerations in AI were explicitly linked to the higher objectives of Shari’ah, encouraging the formulation of responsible governance frameworks.

Through interactive group work, attendees designed six virtual financial-services companies, which were subsequently consolidated into two strategic ecosystems serving as practical testing environments for the proposed AI models and ideas.

"These ecosystems served as practical testing grounds for the proposed ideas and models," IsDBI said in a statement.

The programme closed with a focus on the expanding role of artificial intelligence in central banks, regulatory authorities, and the wider Islamic financial ecosystem.

In collaborative exercises, participants drafted an initial roadmap for AI adoption in financial and supervisory institutions, prioritising innovation alongside a culture of responsible deployment that respects regulatory requirements and Shari’ah principles.

Certificates of attendance were presented to all participants, signalling completion of a milestone initiative poised to accelerate technologically driven, ethically grounded progress in Islamic finance across the Arab region.