This paper aims to review the use cases of AI applications implemented in Islamic financial institutions across the globe to get some understanding on how AI can be applied in real business environment of providing Shariah compliant financial services. To get real industry examples, the study utilizes content analysis method in reviewing Islamic financial technology reports and related news. The findings indicate that Islamic financial institutions across the globe have incorporated AI based digital innovations in general operations. However, AI applications in the Shariah compliance aspect is still limited. A more coordinated collaboration among academics and Islamic finance industry players with respective Shariah and technology backgrounds is crucial to unleash the potential of AI applications in Shariah compliance of Islamic finance.

This study examines how board of directors (BOD) and Shariah board (SB) characteristics influence risk-taking and performance in Malaysian Takaful operators (TOs). These operators face unique challenges when balancing financial growth with strict adherence to Shariah principles. The study analyse data from 15 TOs from 2012 to 2021, resulting in a total of 124 firm-years of observations using panel data regression techniques. The key findings are a higher proportion of women on BOD leads to less risk-taking, while larger SB with more PhD members encourage it. However, the impact on performance is mixed. More women on BOD might reduce returns on assets, while frequent BOD meetings and a highly qualified SB might lower return on equity. This research offers valuable insights, where investors should consider the risk-return trade-off when evaluating TOs based on BOD and SB composition while managers need to balance risk management with Shariah compliance by building diverse BOD and optimising SB structure. Industry regulators should promote sound governance practices and collaboration between BOD and SB. Overall, the study contributes to the corporate and Shariah governance literature, shedding light on the complex interplay between BOD composition, SB expertise, risk-taking and performance in a complex industry

This paper aims to examine the impact of Board of Directors (BOD) and Shariah Supervisory Board (SSB) characteristics on the performance of Malaysian and Indonesian Takaful Operators (TOs). We manually collected data on BOD characteristics (size, independence of directors and women's representation) and SSB characteristics (size, women's representation, and doctoral degrees) from the annual reports of 27 TOs in Malaysia and Indonesia from 2015 to 2022. This study uses panel data analysis as its empirical approach. Specifically, the study uses generalised least square (GLS) random-effect regression. The study highlights several interesting findings: (1) larger board size and the presence of female directors impact performance negatively; (2) board independence increases performance; (3) However, large SSBs tend to increase performance; and (4) Female scholars in the SSB negatively impact the performance of the TOs.

E-bidding has gained popularity in the modern world due to the technology advancement. Despite its popularity, contracting parties are exposed to Shariah non-compliance practices, which may lead to financial losses and disputes. Islamic jurisprudence provides guidelines assisting bidders and auctioneers in avoiding these practices. This study examines e-bidding platforms in Malaysia and highlights potential Shariah non-compliance issues based on Islamic jurisprudence guidelines. This study employs a qualitative data analysis method. Data are collected from the e-bidding platforms and their published documents. The findings revealed several practices that might lead to Shariah non-compliance issues in e-bidding platforms, including unverified bidders, elements of uncertainty, riba, gambling, and unavailability of khiyar (option). This study suggests several improvements to enhance procedures of e-bidding platforms to avoid financial losses and disputes among contracting parties in e-bidding. Hence, the improvement like verification of bidders, fulfilment of requirement for trading ribawi item, avoidance of element of uncertainty and gambling activities, and offering khiyar to successful bidder are suggested.

E-bidding has gained popularity in modern world due to the advancement of technology. Despite its popularity, contracting parties are exposed to Shari’ah non-compliance practices which might lead to financial loss and dispute among contracting parties. Islamic jurisprudence provides guideline that may assist bidders and auctioneers to avoid these practices. This study aims to examine e bidding platforms in Malaysia and highlight potential Shari’ah non-compliance issues based on guideline offered by Islamic jurisprudence. This study employs qualitative data analysis method. Data are collected from the e-bidding platforms and its published documents which then are analyzed using content analysis. The findings revealed several potential Shari’ah non compliance practices in e-bidding platforms, among others are, unverified bidders, uncertainty, riba, gambling and unavailability of khiyar (option). Numbers of improvement are suggested to enhance procedures of e-bidding platform so that it will not lead to financial losses and dispute among contracting parties. Keywords: bidding; online bidding; electronic bidding; auction; online auction; electronic auction; Shari’ah non-compliance

The global financial crisis has evidenced sluggish progress in the growth of Malaysian banking sector's assets, deposits, and loans. The scenario could have affMalmquist Productivity Indexected the productivity of Malaysian banks which consists of Islamic and conventional banks. This study aims to evaluate and distinguish the productivity change of 17 Malaysian Islamic banks and 21 conventional banks during the pre and post global financial crisis. To estimate total productivity change of both type of banks, this study employs the Malmquist Productivity Index (MPI) method. In calculating the MPI, the study considers total deposits, personnel expenses and fixed assets as the inputs while for the outputs, the study considers loans, investment and non-interest income. The empirical results reveal that the Islamic and conventional banks have been productive throughout the period of observation. However, the results pointed out that Islamic banks have been more productive than its conventional counterparts. Interestingly, the study indicates that both Islamic and conventional banks have failed to operate at an optimal scale of operations. This could have negative effect on the productivity level of these banks. Furthermore, the recent global financial crisis has negative impact on the productivity level of Islamic and conventional banks in Malaysia.

The purpose of this paper is to raise certain questions within the Malaysian banking sector and find the appropriate answers. The research questions of this paper are: a) whether Islamic banks are more stable relative to conventional banks; and b) what are the determinants of stability for both types of banks? In measuring and comparing the stability of Islamic and conventional banks, this study employs the financial soundness indicators (FSI) of the International Monetary Funds (IMF) and the z-score index. These are then followed by a series of parametric and non-parametric tests. Thereafter, a pooled ordinary least squares (OLS) robust regression is applied to examine the determinants of stability for Islamic and conventional banks. The results reveal that Islamic banks are significantly less stable than conventional banks. However, when the analysis is conducted based on a sample of small and large banks, the results suggest that only large Islamic banks are less stable than large conventional banks. In contrast, small Islamic banks are found to be more stable than small conventional banks. Furthermore, the results reveal that bank size, the level of capitalisation and income diversification are important determinants for the stability of Malaysian Islamic and conventional banks.

Covid19 pandemic has affected the stock market in the world in which many markets have plunged down due to the investors’ uncertainty regarding the economy directions. Even the oil process of WTI and Brent have been at its 20 years low. Nevertheless, many of the financial assets such companies which are fundamentally strong are affected because of market sentiments. Therefore, some investors are waiting for this moment to purchase undervalued stocks at a bargain price. There are named as the contrarians who buy when the market fear and sell when the market is greed. In the late of 2019, The People Republic of China has been stunned with the new virus that is similar to Severe Acute Respiratory Syndrome (SARS) and symptom like pneumonia. World Health Organization (WHO) reported that the pneumonia of unknown cause started in seafood market in Wuhan, Hubei province where traders at the market have had SARS like syndrome. It is believed that the virus originated in bats and transmitted to human. It is called novel coronavirus or MERS-COV2. A discussion between a few traders in Bursa Malaysia regarding the possibility of investing/trading in glove industry amid Covid19 has made Shamnesh buy two glove counters and made a handsome profit. However, during June, the glove counters technical indicators have shown some weaknesses in its trend. What should Shamnesh do with its current position, should he hold, or sell is positions?

The 2009-2018 period witnessed many political and economic changes in the world and the Arab Gulf in general, and in the Kingdom of Saudi Arabia in particular. These changes may affect the performance of the banking sector and threaten the growth and continuity of banks. This study examines the performance of Islamic and conventional banks in this period in the Kingdom of Saudi Arabia. The study sample includes all the twelve Saudi national banks (8 conventional banks and 4 Islamic banks). The study relies on the indicators of liquidity, profitability, activity, and financial solvency. The differences between the means of the financial ratios of conventional banks and Islamic banks will be measured using descriptive and inferential analysis. Data analysis will be carried out using the Statistical Analysis Program (SPSS). The findings have shown that Islamic banks have high liquidity compared to conventional banks. Profitability indicators showed that there are no differences between conventional banks and Islamic banks on the use of their own resources to achieve profits in the average of study period. In addition, the activity indicators showed that the conventional banks employ their resources better than Islamic banks, while both types of banks are approximately similar in investment-deposit ratio. Moreover, both conventional banks and Islamic banks has an acceptable solvency. The study is concluded with a set of recommendations including that Islamic bank must beware that the liquidity does not reach the level of excess liquidity. Islamic banks must work towards increasing cooperation, coordination, and integration between banks at the local and international levels, as well as develop an Islamic financial market and innovate Islamic financial tools. In addition, it is recommended for Islamic banks to amalgamate to form an ideal size of an Islamic bank to be a role model.