Application of Emerging FinTech in Islamic Finance Industry: Challenges and Opportunities in GCC countries

Abstract

This paper discuses FinTech, a rapidly developing sector, with an emphasis on how it fits into Islamic banking. First of all, it offers a thorough grasp of FinTech and its guiding concepts. The conversation then turns to the nexus between Islamic finance and FinTech, emphasizing how these developments are balancing with Sharia-compliant financial practices. An international summary of the state of Islamic FinTech is provided, highlighting noteworthy global trends and advancements. This paper explores the FinTech evolution in the Gulf Cooperation Council (GCC) area. It shows some challenges of such as, talent shortage, cybersecurity, lack of standardization, operational problems, Non-compliance with regulations, and financial and investment obstacles. This paper also highlights some opportunities of Islamic FinTech in some sectors like back office, capital markets, insurance, social finance, and technology providers. The study suggests that each member states under GCC should invest in specialized human resource programs related to Islamic FinTech sector, harmonize among stakeholder through collaboration, regulatory adjustments, and technological integration, integrate the Shariah law with the region, and accumulate of specialized investment funds to foster the growth of Islamic FinTech.