International Journal of Academic Research in Business and Social Sciences

search-icon

Shariah Compliance in Fintech App Solutions: An Islamic Legal Perspective

Open access

Sandia Mohamed Ali AlMelaih AlFzari, Arieff Salleh Rosman, Kawthar Bayoumi, Abdul Basit Samat @ Darawi

Pages 66-78 Received: 14 Sep, 2024 Revised: 12 Oct, 2024 Published Online: 03 Nov, 2024

http://dx.doi.org/10.46886/IJARBSS/v14-i11/12858
This research explores the integration of Shariah compliance in Fintech applications, focusing on how modern financial technologies can align with Islamic legal principles. The study examines core concepts such as the prohibition of Riba (interest), Gharar (uncertainty), and investments in Haram (unlawful activities), while analyzing case studies of successful Shariah-compliant Fintech solutions. Methodologically, the research adopts a qualitative approach, employing content analysis of Islamic legal texts, fatwas, and regulatory frameworks. Insights from Islamic scholars, Fintech experts, and regulatory bodies are gathered to ensure a comprehensive understanding of how Fintech applications can be structured to meet Shariah-compliant standards. The study also addresses the challenges Fintech developers face in implementing Shariah-compliant models, the role of Islamic scholars and regulatory bodies, and offers recommendations for enhancing compliance without stifling innovation. The findings emphasize the need for collaboration between stakeholders to ensure that Fintech solutions can meet both technological advancements and ethical requirements in Islamic finance.
Abdullah, R., & Latiff, I. (2023). The Application of AAOIFI Standards in Fintech: A Comparative Study Across Jurisdictions. Journal of Islamic Finance and Technology, 8(2), 47-62.
Ahmed, N., & Latif, Z. (2021). Risk-Sharing Mechanisms in Islamic Finance: Applications in Shariah-Compliant Fintech Solutions. Journal of Islamic Financial Studies, 13(1), 19-34.
Alam, A., & Rizvi, S. (2023). Smart Contracts and Shariah Compliance: Integrating AAOIFI Standards in Fintech Solutions. Journal of Blockchain in Islamic Finance, 9(1), 22-37.
Alam, S., & Kazi, A. (2021). Structural Differences in Shariah-Compliant and Conventional Fintech Models: A Comparative Study. Journal of Islamic Financial Innovation, 13(2), 39-55.
AlFzari, A. (2024). The inflected of fintech solutions on financial performance in SMEs: An analysis of the IT industry in the UAE. Uncertain Supply Chain Management. UAE
Ali, M., & Khan, F. (2021). Fintech and Islamic Finance: Trends and Challenges in Shariah Compliance. Journal of Islamic Financial Studies, 12(3), 45-67.
Al-Jarhi, M. (2021). Islamic Finance and the Fintech Revolution: Shariah Compliance in the Digital Age. Islamic Financial Review, 15(2), 34-49.
Amin, M., & Kassim, S. (2023). Blockchain and Islamic Finance: The Role of Fintech in Promoting Financial Inclusion. Journal of Digital Finance, 8(1), 18-29.
Aziz, R., & Salim, A. (2022). Shariah Compliance in Robo-Advisory Platforms: The Case of Wahed Invest. Journal of Islamic Fintech Innovation, 14(3), 23-39.
Bashir, T., & Farooq, K. (2022). Shariah-Compliant SME Financing: Insights from Alami’s Digital Platform in Indonesia. Journal of Islamic Digital Finance, 15(2), 22-36.
Farhan, A., & Malik, R. (2021). Islamic Scholars’ Perspectives on Shariah Compliance in Fintech Solutions: A Qualitative Study. Journal of Islamic Economics and Finance, 14(1), 53-68.
Haque, M., & Rahman, Z. (2021). Shariah-Compliant Fintech Models: Examining Mobile Banking and Peer-to-Peer Lending. Journal of Islamic Finance Innovations, 9(3), 34-48.
Hassan, A., & Yusuf, H. (2020). The Concept of Gharar and Its Application in Islamic Finance: A Critical Review. International Journal of Islamic Banking, 7(2), 65-78.
Hassan, M., & Abdullah, T. (2023). Avoidance of Riba in Digital Finance: Challenges and Opportunities for Shariah Compliance. Journal of Islamic Economics and Law, 15(3), 25-40.
Hassan, R., & Malik, J. (2021). Cryptocurrency and Shariah Compliance: The Case of Rain in Bahrain. Journal of Blockchain and Islamic Finance, 9(4), 14-28.
Hassan, R., & Zafar, L. (2021). Building Consumer Trust in Shariah-Compliant Fintech: The Role of Transparency and Certification. Islamic Financial Innovations Journal, 14(2), 75-90.
Hussain, M., & Ali, S. (2021). Challenges in Achieving Shariah Compliance in Fintech Applications: An Islamic Perspective. Journal of Islamic Economics and Finance, 13(2), 25-40.
Ibrahim, H., & Ahmed, S. (2023). Balancing Innovation and Compliance in Islamic Fintech: A Legal Perspective. Journal of Emerging Technologies in Islamic Finance, 9(1), 52-68.
Ibrahim, R., & Khalid, M. (2021). Exploring the Role of Fatwas in Shariah-Compliant Fintech Development. Journal of Islamic Legal Studies, 12(3), 31-48.
Iqbal, N., & Khan, S. (2022). Shariah-Compliant Financing Models: Alternatives to Conventional Interest-Based Systems. Islamic Finance and Technology Review, 12(4), 41-55.
Ismail, N., & Suhaimi, M. (2022). Regulating Fintech for Shariah Compliance: Challenges and Opportunities. Journal of Islamic Finance and Banking, 10(1), 22-37.
Jameel, H., & Nasser, S. (2022). Analyzing Shariah Compliance Reports in the Fintech Industry: Lessons from Leading Companies. Journal of Islamic Financial Technologies, 9(2), 45-60.
Khalid, S., & Awan, M. (2023). Cryptocurrency and Shariah Compliance: Exploring the Regulatory Challenges. Islamic Digital Finance Review, 11(1), 23-39.
Khan, R., & Ibrahim, F. (2022). Shariah Compliance in the Global Fintech Landscape: Regulatory Challenges and Solutions. Islamic Finance Journal, 14(3), 50-68.
Mahmood, M., & Ali, F. (2021). Riba in the Context of Modern Financial Transactions: An Islamic Legal Perspective. Journal of Islamic Finance Studies, 10(1), 15-27.
Messina, P. (2019). Finance for SMEs: Focus on Securitization and Alternative Finance Tools.
Nadeem, S., & Khalid, R. (2021). Navigating Regulatory Complexities in Shariah-Compliant Fintech Solutions. Journal of Islamic Finance Regulation, 16(1), 30-45.
Noor, M., & Bashir, A. (2022). Fintech Innovation and Shariah Compliance: Bridging Modern Technology with Islamic Ethics. Journal of Emerging Technologies in Islamic Finance, 6(2), 23-38.
Omar, F., & Zainuddin, M. (2023). Bridging the Gap Between Theory and Practice: Implementing Shariah Compliance in Fintech Solutions. Journal of Islamic Financial Technologies, 7(1), 18-30.
Omar, M., & Khan, I. (2023). Integrating Fintech into Traditional Islamic Banking: A Case Study of Dubai Islamic Bank. Journal of Digital Islamic Banking, 10(1), 40-55.
Omar, Z., & Latif, N. (2023). Bridging the Gap Between Islamic Law and Financial Technology: A Shariah-Compliant Approach. Journal of Digital Islamic Studies, 11(1), 35-53.
Osman, S. (2023). Shariah Governance in Fintech: Global Perspectives and Regulatory Frameworks. Fintech and Ethics Review, 9(4), 89-110.
Rahman, A., & Aziz, H. (2021). Peer-to-Peer Lending in Islamic Finance: Lessons from Beehive’s Shariah-Compliant Model. Journal of Islamic Financial Solutions, 12(2), 47-60.
Rahman, A., & Hashim, M. (2022). The Digitalization of Islamic Finance: Opportunities and Obstacles. Islamic Finance Journal, 17(1), 55-73.
Rahman, A., & Karim, S. (2022). Ethical Investment Practices in Shariah-Compliant Fintech: A Legal Perspective. International Review of Islamic Finance, 9(2), 47-62.
Rahman, F., & Faizal, N. (2022). Challenges in Globalizing Shariah Standards for Fintech: The Role of AAOIFI in Cross-Border Finance. International Journal of Islamic Finance Governance, 11(3), 55-71.
Rashad, A., & Farooq, H. (2021). Consumer Adoption of Shariah-Compliant Fintech in Non-Muslim Countries: Barriers and Opportunities. Global Islamic Finance Journal, 15(2), 41-58.
Rashid, A., & Hassan, T. (2023). Collaboration Between Islamic Scholars and Fintech Developers in Shariah Compliance. International Journal of Islamic Fintech, 9(3), 67-85.
Rashid, T., & Malik, S. (2023). The Role of Ethical Screening in Shariah-Compliant Investments: Challenges and Opportunities for Fintech. Global Islamic Finance Journal, 8(1), 12-26.
Rashidi, F., & Karim, S. (2020). Overcoming Jurisdictional Challenges in Shariah-Compliant Fintech Regulation. International Journal of Islamic Finance Law, 8(4), 45-60.
Sadiq, R. & Baig, N. (2022). Challenges in Developing Shariah-Compliant Fintech Solutions. Journal of Digital Islamic Economics, 14(1), 23-39.
Salman, Z., & Zain, M. (2023). Social Impact and Shariah Compliance in Crowdfunding: The Ethis Group Experience. International Journal of Islamic Finance and Development, 11(1), 31-45.
Shah, H., & Ahmed, Y. (2023). Innovations in Islamic Finance: Addressing Shariah Compliance in Emerging Fintech. International Review of Islamic Banking, 9(2), 77-92.
Shah, N., & Aziz, F. (2023). Content Analysis of Shariah Rulings and Their Application in Fintech. Islamic Finance Review, 10(1), 67-83.
Suleiman, A., & Jamal, I. (2022). The Role of Regulatory Bodies in Shariah-Compliant Fintech: A Global Perspective. Journal of Islamic Law and Financial Technology, 10(2), 57-73.
Temelkov, Z., & Samonikov, M. (2018). The need for fintech companies as non-bank financing alternatives for sme in developing economies. International Journal of Information, Business and Management, 10(3), 25-33.
Usman, H., & Latif, A. (2022). Regulatory Frameworks in Islamic Finance: A Qualitative Analysis of Shariah Compliance in Fintech. Journal of Digital Islamic Economics, 15(2), 22-40.
Yousuf, H. (2020). The Role of Technology in Advancing Islamic Finance. International Journal of Fintech and Shariah Compliance, 8(2), 102-120.
Yusuf, M., & Ali, F. (2022). The Role of Algorithms in Ensuring Shariah Compliance in Digital Financial Platforms. Journal of Islamic Digital Finance, 11(3), 19-34.
Zain, H., & Farooq, I. (2022). Ethical Investments and Risk-Sharing in Shariah-Compliant Fintech Platforms: A Comparative Analysis. International Journal of Islamic Finance Technologies, 10(3), 27-42.
Zaman, S., & Hussein, M. (2021). AAOIFI Standards and Their Role in Islamic Finance: Ensuring Compliance in Modern Financial Systems. Journal of Islamic Financial Standards, 14(2), 28-43.
Zubair, F., & Khan, I. (2020). Smart Contracts and Islamic Finance: Ensuring Transparency in Shariah-Compliant Fintech. Journal of Digital Islamic Economics, 14(1), 12-29.
AlFzari, S. M. A. A., Rosman, A. S., Bayoumi, K., & Darawi, A. B. S. @. (2024). Shariah Compliance in Fintech App Solutions: An Islamic Legal Perspective. International Journal of Academic Research in Business and Social Sciences, 14(11), 66–78.