DOHA: The 10th Doha Islamic Finance Conference, under the theme 'Islamic Finance 2.0 - Fusion of Principles and Technology', began on Tuesday amidst local and international participation from governmental bodies, organisations, financial institutions, and academic entities in the fields of economics, finance, and technology.
The 10th Doha Islamic Finance Conference aims to explore the developments in Generative AI technology and its impact on fatwas and Shari'ah supervision in Islamic financial institutions. It also seeks to assess the influence of AI applications on the performance of Islamic financial institutions and to explore the opportunities and challenges facing Waqf (endowment) institutions in the era of AI. Additionally, the conference will address the ethical and legal considerations of Islamic finance within smart systems.
In this regard, Director General of the General Directorate of Endowments at the Ministry of Endowments and Islamic Affairs, Sheikh Dr Khalid bin Mohammed bin Ghanim Al Thani asserted that the AI has entered the realm of Islamic finance and endowment institutions, which imposes the stakeholders to study the ways for benefitting from the enormous developments in this regard. The study shall consider several aspects including the relevant procedures, the matters of Fatwa, electronic services, and so forth and so on from the theoretical and practical perspectives. Such studies shall help in appropriate comprehension of the matter from both the legal and Shari'ah standpoints. He also pointed towards the significance of the topics that are discussed in the conference and the magnitude of the benefits the attendees will share.
He stressed that the General Directorate of Endowments at the Ministry of Endowments and Islamic Affairs believes in the role of knowledge in the progress and development of the nation and that this technological advancement has become a necessity for the continuity of institutions. He pointed out that the Waqf institution, as one of the pillars of Islamic economic institutions, is not far from the wave of transition towards smart technologies, which have recently emerged prominently in generative AI tools, adding that this leads to positive thinking and optimism about what this new technology can add to improving Waqf services, developing Waqf activities, enhancing their sustainability, and improving their efficiency.
Furthermore, he added that the General Directorate of Endowments seeks, through this conference and its participation, to provide experience, exchange knowledge, and expertise, and learn about the latest technologies in the field of generative AI applications in Waqf. He added that it also aims to contribute to enhancing societal awareness of the importance of Waqf and its role in achieving sustainable development. He praised the conference's keenness to highlight Waqf issues, as one of the objectives of this conference is to explore the opportunities and challenges facing Waqf institutions in the AI world, in addition to topics such as utilizing AI techniques in developing mechanisms for the registration and documentation of Waqf and exploring the potential of AI in Waqf management and investment.
Chairman of the Organizing Committee and Vice Chairman of Bait Al-Mashura Finance Consultation Dr Khalid bin Ibrahim Al Sulaiti said: "We cannot deny the tremendous revolution we are experiencing today in the world of technology. The emergence of generative artificial intelligence technology and its tools intensified this revolution, seeking not just to be part of our lives but to become an integral part of us. Virtual assistants, such as chat GPT technology, have appeared as substitutes for our thinking and decision-making. Moreover, attempts have been made to implant electronic chips in the human body. This serious transformation signals a new phase in human history."
"Islamic finance is inseparable from this reality. The space for smart technologies has expanded, and electronic machines have invaded humans in financial transactions, including critical aspects of the Islamic finance system. Today's conference aims to discuss these critical issues with scholars and experts to understand the features of Islamic finance in its new era," he added.
"Qatar is renowned as one of the countries pioneering Islamic finance and supporting the AI. With Islamic finance of more than $174mn, It has ranked 5th globally in terms of Islamic finance market size. The interest of the state in AI entailed the prevalence of the AI market inQatar. The value of AI is estimated to be $38mn for the past year, while it is expected to be $58.8mn by the year 2026 with more than 17 percent of annual growth. The state of Qatar is third among the Arabic countries within the index of the state readiness for AI, while it is eighth globally in terms of digital policies and legislation," Al Sulaiti said.
Chairman of Dukhan Bank Sheikh Mohammed bin Hamad bin Jassim Al Thani said: "Financial technology has reshaped Islamic banking and its products. Generative artificial intelligence has emerged with its tools to contribute to accelerating growth and increasing efficiency for Islamic financial institutions. This is achieved through predictive analysis of big data, neural analysis of texts and conversations, smart advisory robots, and other advanced technologies and innovations that represent a qualitative leap in Islamic banking services."
"Dukhan Bank has become the third-largest and fastest-growing Islamic bank in Qatar and among the top ten Islamic banks worldwide. These accomplishments have been crowned with outstanding financial results, as the bank achieved historical profits exceeding QR1.3bn in 2023, with revenues surpassing QR6bn, reflecting a remarkable growth rate of 37 percent. This experience has strengthened our strategy at the group, which is based on enhancing innovation and digital transformation. Throughout its career, the bank has provided innovative digital financial products that have enhanced its position. In 2023, the bank received prestigious awards and rankings in the field of innovation and digital transformation, including the 'Best Use of Artificial Intelligence in Financial Services' award and the 'Most Innovative Islamic Bank Card for 2023' award," he added.
"Our success in Islamic banking would not have been possible without a legislative and regulatory environment that believes in innovation and provides a nurturing space, surrounded by advanced protective systems. This is the role played by the supervisory and regulatory authorities, led by Qatar Central Bank (QCB). In its third financial strategy, QCB outlined the enhancement of the Islamic finance role, in addition to supporting digital innovations and advanced technology."
