CIBAFI Holds Ninth Innovation, Technology Working Group Meeting

The General Council for Islamic Banks and Financial Institutions (CIBAFI), an affiliate of the Organization of Islamic Cooperation (OIC), convened the ninth meeting of its Innovation and Technology Working Group on Wednesday in Jeddah, bringing together member countries, bank and financial institution representatives, regulatory bodies, and industry stakeholders to advance the digital transformation of Islamic finance. The session, announced through official Saudi channels via the Saudi Press Agency (SPA), underscored the Kingdom’s expanding role as a convening power for the global Islamic financial industry, a sector that serves more than 100 million customers worldwide and continues to grow at a pace well above conventional banking in many markets.

Hosted in Saudi Arabia’s commercial capital, the meeting reflects the Kingdom’s strategic commitment to shaping the future of Sharia-compliant finance at a moment when digital innovation, regulatory modernization, and artificial intelligence are redefining how financial institutions operate. Could there be a more fitting venue for such deliberations than the city that serves as the operational heart of the Islamic Development Bank and a growing cluster of fintech enterprises? The working group reviewed a slate of upcoming projects, including the Digital Transformation Guide and the Global Islamic Bankers’ Survey 2025, both designed to give institutions and regulators practical tools for navigating rapid technological change while remaining faithful to Islamic banking principles and Sharia law.

Context and Background

Why does a technical working group meeting in Jeddah matter to financial markets from Kuala Lumpur to London? CIBAFI, established under the umbrella of the Organization of Islamic Cooperation, serves as the principal international body representing Islamic banks and financial institutions, with a mandate to promote the industry’s soundness, growth, and global integration. Its Innovation and Technology Working Group functions as a standing platform where central bankers, regulators, bank executives, and technology providers exchange knowledge and coordinate responses to emerging challenges. The ninth meeting therefore represents continuity in a sustained institutional effort rather than a one-off event, building on eight previous sessions that have progressively shaped the industry’s digital agenda.

The timing is significant. Islamic finance has expanded from a niche segment into a mainstream component of the global financial system, with assets estimated in the trillions of dollars and sukuk issuances increasingly attracting conventional investors seeking ethical and asset-backed instruments. At the same time, digitalization is transforming customer expectations, distribution models, and supervisory practices across the sector. Saudi Arabia, home to some of the world’s largest Islamic banks and a rapidly maturing fintech ecosystem, has a direct stake in ensuring that this dual evolution — Sharia compliance and technological sophistication — proceeds in a coordinated, well-governed manner. The working group provides exactly that coordination mechanism.

Moreover, the meeting occurs as Saudi Arabia accelerates its own financial sector development program under Vision 2030, which targets a more diversified economy, a deeper capital market, and a digital-first financial services landscape. The Kingdom’s regulators, including the Saudi Central Bank (SAMA) and the Capital Market Authority, have introduced frameworks for fintech licensing, open banking, and digital insurance that are among the most forward-leaning in the region. CIBAFI’s deliberations thus intersect directly with Saudi Arabia’s domestic reform agenda while reinforcing its international leadership in Islamic finance.

Key Details

What specifically did the ninth meeting place on the industry’s agenda? According to the official announcement carried by the Saudi Press Agency, the working group highlighted several upcoming projects, foremost among them the Digital Transformation Guide and the Global Islamic Bankers’ Survey 2025. The Digital Transformation Guide is expected to offer institutions a structured roadmap for adopting digital technologies — from core banking modernization to mobile-first customer journeys — while maintaining compliance with Sharia requirements and prudential regulation. The Global Islamic Bankers’ Survey 2025 will capture the perspectives of senior executives across member institutions, providing a data-driven picture of strategic priorities, investment plans, and perceived risks.

The meeting also examined broader thematic areas, including Islamic banking principles, Sharia law, financial technology, and related topics. This integrated approach reflects a recognition that technology adoption in Islamic finance cannot be separated from governance, ethics, and legal certainty. By addressing these dimensions together, CIBAFI helps member institutions avoid fragmented approaches that could create compliance gaps or erode customer trust. The participation of regulatory bodies alongside bank representatives further ensures that supervisory perspectives inform industry guidance from the outset, a hallmark of effective standard-setting.

A knowledge-sharing session with Pio-Tech added a practical dimension to the proceedings, with the company delivering a special presentation on the role of artificial intelligence in regulatory compliance and financial governance. The session illustrated how AI tools can enhance anti-money laundering detection, automate reporting obligations, strengthen risk assessment, and support internal audit functions — capabilities of growing importance as transaction volumes rise and regulatory expectations intensify. For Islamic banks, AI adoption carries the additional requirement that algorithms and data practices align with Sharia principles, a nuance that the working group is well positioned to address.

International and Regional Impact

How will decisions taken in Jeddah resonate beyond the Kingdom’s borders? CIBAFI’s membership spans the breadth of the Islamic world, from the Gulf Cooperation Council states to Southeast Asia, North Africa, and beyond, as well as institutions in non-Muslim-majority jurisdictions that offer Islamic financial products. Guidance and survey findings emanating from the working group are therefore likely to inform strategic planning at banks and regulators across multiple continents. For international audiences, this matters because Islamic finance is no longer a regional curiosity; it is an integral part of global capital markets, and its technological evolution will influence cross-border investment flows, trade finance, and sustainable finance frameworks.

Regional cooperation is also strengthened through such forums. The presence of regulatory bodies at the table facilitates peer learning on licensing regimes, sandbox programs, and cybersecurity standards. In an era when financial crime, cyber threats, and operational disruptions cross borders with ease, coordinated approaches yield benefits that no single jurisdiction can achieve alone. Saudi Arabia’s convening role in this process enhances its standing as a responsible stakeholder in the global financial system and as a bridge between Islamic and conventional finance. The Kingdom’s own experience — rapidly digitizing its banking sector while expanding Sharia-compliant offerings — offers a compelling case study for other member countries at earlier stages of the journey.

Economic and Strategic Significance

Why should investors and policymakers pay attention to the working group’s output? The Digital Transformation Guide and the Global Islamic Bankers’ Survey 2025 are not merely technical documents; they are signals of an industry organizing itself for a more competitive, technology-intensive future. Banks that adopt robust digital strategies can lower costs, reach underserved segments, and tailor products more precisely, all of which support financial inclusion — a priority echoed in Saudi Vision 2030 and in global development agendas. The survey, by aggregating executive sentiment, will also give market participants an early read on capital expenditure trends, partnership models, and areas where regulatory clarity is most needed.

From a strategic standpoint, Islamic finance’s ethical and asset-backed characteristics align naturally with growing investor demand for sustainable and responsible finance. Digital tools can enhance transparency, traceability, and reporting in ways that reinforce these strengths. By tackling AI governance and regulatory technology now, CIBAFI’s working group is helping to future-proof an industry that must compete with agile conventional and digital-native challengers. For Saudi Arabia, whose financial sector is a pillar of its economic diversification strategy, active participation in these global conversations translates into influence over standards, access to best practices, and stronger ties with counterpart institutions worldwide.

Vision 2030 Alignment

How does this meeting connect to the Kingdom’s long-term transformation? Saudi Vision 2030 envisions a diversified economy with a vibrant financial sector, expanded digital infrastructure, and a leading role in the global Islamic economy. The Financial Sector Development Program, one of the Vision’s executive programs, aims to increase the depth and sophistication of financial services, promote fintech, and enhance Saudi Arabia’s position as a hub for Islamic finance. CIBAFI’s Innovation and Technology Working Group, meeting on Saudi soil with Saudi and international participation, directly supports these objectives by advancing the knowledge base, standards, and networks on which the industry depends.

The Kingdom’s commitment extends beyond hosting meetings. Saudi institutions are investing heavily in digital banking, open finance, and AI-driven compliance, while the public sector champions initiatives that make the country a natural home for Islamic fintech innovation. As the working group’s projects mature — the Digital Transformation Guide, the 2025 survey, and future knowledge-sharing sessions — they will provide tangible inputs for banks, regulators, and technology providers working to realize Vision 2030’s ambitions. In this sense, the ninth meeting is both a continuation of CIBAFI’s important mandate and a reflection of Saudi Arabia’s broader effort to lead, responsibly and inclusively, in the global economy of the future.

20 Questions

Q1. What is CIBAFI and what does it do?

A1. CIBAFI is the General Council for Islamic Banks and Financial Institutions, an affiliate of the Organization of Islamic Cooperation. It represents and supports Islamic banks and financial institutions worldwide, promoting industry growth, soundness, and international integration through standard-setting, research, and cooperation.

Q2. What was the ninth Innovation and Technology Working Group meeting?

A2. It was a gathering convened by CIBAFI in Jeddah on Wednesday, bringing together member countries, bank and financial institution representatives, regulatory bodies, and stakeholders to discuss digital transformation, fintech, and upcoming industry projects.

Q3. Where and when did the meeting take place?

A3. The meeting was held in Jeddah, Saudi Arabia, on Wednesday, November 20, 2024, according to the official announcement carried by the Saudi Press Agency.

Q4. Which projects were highlighted during the meeting?

A4. The working group highlighted the upcoming Digital Transformation Guide and the Global Islamic Bankers’ Survey 2025, both aimed at supporting Islamic finance institutions in navigating technology and market changes.

Q5. What is the Digital Transformation Guide?

A5. It is a forthcoming CIBAFI project expected to provide institutions with a structured roadmap for adopting digital technologies while maintaining Sharia compliance and meeting prudential regulatory requirements.

Q6. What is the Global Islamic Bankers’ Survey 2025?

A6. It is a planned survey capturing the perspectives of senior executives across Islamic banks, offering data on strategic priorities, investment plans, and perceived risks for the year ahead.

Q7. Who participated in the meeting?

A7. Participants included representatives from CIBAFI member countries, banks and financial institutions, regulatory bodies, and other industry stakeholders, reflecting broad international engagement.

Q8. What topics were discussed beyond the two projects?

A8. The agenda covered Islamic banking principles, Sharia law, financial technology, and other related subjects, ensuring a holistic approach to industry development.

Q9. What was Pio-Tech’s role in the meeting?

A9. Pio-Tech delivered a special presentation during a knowledge-sharing session on the role of artificial intelligence in regulatory compliance and financial governance.

Q10. How can AI support regulatory compliance in Islamic finance?

A10. AI can enhance anti-money laundering detection, automate reporting, strengthen risk assessment, and support internal audit functions, helping institutions meet regulatory expectations more efficiently while maintaining Sharia compliance.

Q11. Why is this meeting significant for Saudi Arabia?

A11. It reinforces Saudi Arabia’s role as a convening power and leader in Islamic finance, aligning with Vision 2030 goals to diversify the economy and develop a sophisticated, digital-first financial sector.

Q12. How does the meeting relate to Vision 2030?

A12. It supports the Financial Sector Development Program by advancing knowledge, standards, and networks that strengthen Islamic finance, fintech, and digital infrastructure, all central to Vision 2030’s economic diversification objectives.

Q13. What is the expected impact on Islamic banks globally?

A13. The projects and discussions are expected to inform strategic planning at banks and regulators worldwide, promoting coordinated adoption of digital tools, better governance, and enhanced competitiveness.

Q14. How does digital transformation benefit Islamic finance customers?

A14. It can lower costs, expand access to underserved segments, and enable more tailored Sharia-compliant products, supporting financial inclusion and improved customer experiences.

Q15. What role do regulatory bodies play in the working group?

A15. Their participation ensures supervisory perspectives inform industry guidance, facilitating peer learning on licensing, sandbox programs, cybersecurity, and other regulatory matters.

Q16. Why is Sharia compliance important in digital innovation?

A16. Sharia compliance ensures that technological adoption respects Islamic principles, maintaining customer trust and the integrity of Islamic financial products as they evolve digitally.

Q17. How does this meeting fit into CIBAFI’s broader mission?

A17. It is the ninth session of a standing working group, reflecting CIBAFI’s ongoing commitment to coordinate industry responses to technological change and promote the soundness and growth of Islamic finance.

Q18. What are the next steps after this meeting?

A18. CIBAFI will continue developing the Digital Transformation Guide and the Global Islamic Bankers’ Survey 2025, with further knowledge-sharing sessions and working group meetings expected to follow.

Q19. How does Islamic finance contribute to sustainable development?

A19. Its ethical, asset-backed, and risk-sharing principles align with responsible finance, and digital tools can enhance transparency and reporting, supporting sustainable development goals.

Q20. What does this meeting signal about Saudi Arabia’s global role?

A20. It signals Saudi Arabia’s active leadership in shaping the future of Islamic finance, using its convening power and Vision 2030 reforms to drive international cooperation and innovation.

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