THE IMPORTANCE OF ENGINEERING NEW ISLAMIC FINANCIAL PRODUCTS

Abstract

Given that the world faces political and economic challenges, having a strong financial standing is crucial for any country. This research answers the question of why the Islamic banking industry should innovate with new Islamic financial products. This study discussed the challenges faced by current financial products that are being used in the Saudi market. In addition, the importance of developing new Islamic financial products that cost less and meet the needs of Muslims, especially those living in the Kingdom of Saudi Arabia, is also discussed. The research covers any research published between 1998 and 2017 on data related to Islamic finance, financial engineering, banking and investment. The main aim of this research is to emphasize the importance and urgency of the development of new Islamic financial products, as banks in the Kingdom of Saudi Arabia spend huge amounts on their operations in accordance with Sharia law, as it is a crucial factor to operate in the Kingdom of Saudi Arabia. Empirical results show that technology and the emergence of the fourth industrial revolution have the capacity to influence the innovation activities of Islamic products. Precisely, Islamic financial innovation has an impact on increasing opportunities for Muslim investment.

CCS Concepts

• Information systems➝Database management system engines   • Computing methodologies➝Massively parallel and high-performance simulations.