Strategic Response Of Islamic Banks To Fintech Distribution In GCC Countries

Authors

  • Samira khan, Walaa Rezk, Amna Juma’a Qazaq, Abdelrahman Ali Bedaiwy, Dr B Raj Narayanan, Bandla Pavan Author

DOI:

https://doi.org/10.64252/wg7c5m06

Keywords:

Islamic Banking, Fintech, GCC, Shariah Compliance, Strategic Response

Abstract

The present paper explores the strategic outcomes of Islamic banks regarding fintech distribution in GCC states in relation to how the banks adjust to the costs and benefits of technological unique solutions and regulatory compliance with Shariah principles. A multiple case design has been applied with four biggest Islamic financial institutions (i.e. Al Rajhi Bank, Dubai Islamic Bank, Kuwait Finance House and Al Baraka Bank) by using a documentary method and 12 semi-structured interviews on senior banking executives, financial regulators and Shariah officers. Thematic analysis narrowed down on five areas of core response including technology adaption, fintech collaborations, compliance-management tensions, customer-focused programs, and regulatory conformity. The essential findings point towards 75 percent of the banking institutions involved in the cases study having undertaken core system renewals and mobile first approaches. The highest adoption breadth was by Dubai Islamic Bank, due to four fintech solutions being used, whereas Al Baraka Bank had the lowest presence in the digital world. The major barriers mentioned by 83 percent of the interviewees were Shariah compliance to AI-based credit scoring and blockchain applications. Flexibility in regulation, specifically sandbox environments in the UAE and Bahrain, promoted quicker adoption. The research finds that agile flexibility, anticipatory governance and front-loading Shariah supervision form the key to strategic success in regards to digital innovation. The study provides practical knowledge to the Islamic banks to be able to stay competitive without breaking the religious and regulatory requirements.

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Published

2025-07-26

Issue

Section

Articles

How to Cite

Strategic Response Of Islamic Banks To Fintech Distribution In GCC Countries. (2025). International Journal of Environmental Sciences, 1596-1605. https://doi.org/10.64252/wg7c5m06