The Governor of the Monetary Authority Participates in the 20th Annual Conference of AAOIFI - The Islamic Development Bank on Islamic Finance in the Era of Artificial Intelligence

SadaNews - Governor of the Monetary Authority Yahya Shanar participated in the proceedings of the 20th Annual Conference on Islamic Banking and Finance organized by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in cooperation with the Islamic Development Bank, held in the Kingdom of Bahrain under the title: "Islamic Finance in the Era of Artificial Intelligence: Current Potentials and Future Prospects". The conference was attended by officials, experts, and thinkers in the Islamic finance industry, led by Ibrahim bin Khalifa Al Khalifa, Chairman of the Board of Trustees of "AAOIFI", and Dr. Sami Suwailem, Acting Director General of the Islamic Development Bank Institute, along with a number of governors of central banks, heads of Sharia boards, and representatives from international financial institutions.

In the opening session of the conference, Governor Shanar delivered a speech emphasizing the importance of holding this conference at a pivotal moment in the history of the Islamic finance industry, where the authenticity of principles intersects with the rapid technological developments observed worldwide, indicating that artificial intelligence represents a qualitative opportunity to enhance the efficiency of the Islamic finance industry and promote financial inclusion.

The governor spoke about the resilience of Islamic finance in the face of global crises, affirming that its success stems from its foundations based on real financing, risk-sharing, and avoiding unproductive speculation.

He also addressed Palestine's experience in this field, noting that banks and Islamic financial institutions continue to play their central role in supporting the national economy and financing small and medium-sized enterprises despite the challenges facing the country, pointing out that this resilience stems from their commitment to principles of justice, transparency, and providing responsible financing compatible with Islamic law, contributing to enhancing the economic and social resilience of Palestinian families and enterprises.

Shanar indicated that the revolution in artificial intelligence represents both a challenge and an opportunity for Islamic financial institutions, stressing the need to adopt innovative technological solutions that enhance efficiency and transparency while reducing costs. He called for expanding the role of Sharia supervisory bodies to become active partners in engineering digital transformation in the financial industry and enhancing cooperation between Sharia bodies, developers, and technology experts to ensure the development of digital financial products compatible with Islamic law.

The governor praised the strategic partnership between the Accounting and Auditing Organization (AAOIFI) and the Islamic Development Bank, and their role in establishing the standard and intellectual frameworks for artificial intelligence in Islamic finance, and in supporting entrepreneurial projects and modern financial technologies in member countries.

He pointed out that the banking sector and Islamic financial institutions are part of a broader system to support development in Palestine, emphasizing the importance of humanitarian, relief, and reconstruction efforts in the Gaza Strip after the war, where rebuilding infrastructure and empowering affected families and communities are national priorities. This requires solidarity from the international community and the integration of efforts from countries and institutions to provide humanitarian assistance and promote economic and social development, ensuring the stability of society and enhancing the resilience of Palestinian citizens in the face of current challenges.

He also called for the conference recommendations to serve as an executive roadmap to enhance the role of the Islamic finance industry in leading sustainable financial innovation, emphasizing the importance of launching joint initiatives that bring together jurists, bankers, and technologists to establish clear foundations for smart, responsible, and ethical finance.

Additionally, the Governor of the Monetary Authority chaired the fourth session titled "Developing Entrepreneurship by Providing Sharia-Compliant Financing to Micro, Small, and Medium Enterprises and Creating Integrated Value Chains and a Suitable Ecosystem".

During the session, the governor indicated that micro, small, and medium enterprises represent the primary lever for the economy and a key driver for growth and job creation, accounting for more than 90% of companies worldwide and providing about 70% of jobs, according to International Finance Corporation (IFC) reports.

He reviewed Palestine's experience in supporting this vital sector, noting that small and medium enterprises constitute about 98.6% of the Palestinian economy and absorb more than 80% of the workforce. He also highlighted the efforts of the Palestinian government and the Monetary Authority in empowering this sector through the launch of the "Sustainability" fund valued at $430 million, and updating regulatory instructions to encourage Islamic banks to finance vital productive sectors such as agriculture, food industries, and renewable energy.

The governor emphasized the importance of diversifying Islamic financing methods and developing innovative products such as crowdfunding and individual financing to widen access to financing, calling for raising awareness about Islamic finance and creating partnerships between Islamic financial institutions and the public and private sectors to support entrepreneurship and achieve sustainable economic development.