Blade Labs’ embedded Islamic finance platform, ZeroH, has received a formal Shariah pronouncement from the Amanie Shariah Supervisory Board, validating its asset tokenisation and smart contract framework for use in compliant financial products and transactions.

The fatwa confirms that ZeroH’s technology meets Shariah requirements by ensuring the correct sequencing of financial steps. The ruling covers multiple contract types, including murabahah, commodity murabahah, musharakah, and ijarah.

This fatwa validates what we've built at our core—infrastructure that addresses the fundamental compliance challenge Islamic finance has faced for decades,"said Sami Mian, CEO of Blade Labs. 

ZeroH offers automated processing of Islamic finance transactions, using programmatic controls to verify compliance at each step. Its smart contracts are immutable and integrate directly into existing financial infrastructure, allowing institutions to streamline operations while maintaining full Shariah compliance.

The platform operates under the Shariah principle of ujrah (fee-for-service). It will serve as the foundation for the forthcoming ZeroH Network, a blockchain-powered system that connects financial institutions through verified transaction workflows across various Islamic financial products.

ZeroH’s approval comes at a time when financial institutions are seeking scalable, technology-enabled solutions to address operational challenges in delivering Islamic financial products. The platform is backed by annual Shariah audits and aims to reduce risk, accelerate approvals, and improve efficiency for compliant financing.

Dubai has retained its position as the top global destination for Greenfield foreign direct investment (FDI) in the cultural and creative industries (CCI) for the third consecutive year, according to data from the Financial Times.

The emirate attracted 971 FDI projects in the sector during 2024, marking an 8% increase from the previous year’s 898 projects. These projects brought in AED18.86 billion in capital inflows, reflecting a nearly 60% year-on-year rise. The investments resulted in 23,517 new jobs, a 9% increase compared to 2023.

According to the Dubai FDI monitor and the Dubai framework for cultural statistics, the majority of these projects (76.5%) were Greenfield and wholly owned. Other forms of investment included new models (15.4%), reinvestment projects (5.6%), and mergers and acquisitions (2.4%).

The United States led in capital inflows with a 23.2% share, followed by India (13.4%), the United Kingdom (9.4%), Switzerland (7.6%), and Saudi Arabia (4.8%). In terms of the number of projects, India ranked first with an 18.8% share, followed by the UK (16.3%), the US (14.2%), Germany (4.2%), and Italy (3.7%).

India was also the top contributor to job creation in Dubai’s CCI sector in 2024, accounting for 18.5% of new roles, followed by the US (14.6%), the UK (13.6%), Germany (4.3%), and France (4%).

Growth in the sector was driven by investments across a broad range of sub-sectors, including advertising and public relations, custom computer programming, creative business services, educational institutions in CCI fields, filmmaking, gaming, software design, and digital technologies such as AI and cloud solutions.

The findings follow the introduction of key policy reforms, including executive council resolution No. (11) of 2025, which allows free zone companies to operate onshore with permits from the Dubai Department of Economy and Tourism (DET). This, along with initiatives such as the Zero Government Bureaucracy (ZGB) programme, aims to streamline processes and reduce barriers for investors.

The Dubai Creative Economy Strategy, which targets a 5% contribution of the creative sector to the emirate’s GDP by 2026, and the Dubai Economic Agenda D33 have also supported the city's continued growth in CCI investment.

The Islamic Development Bank Institute (IsDBI) has received a US patent for its smart voucher system, a blockchain-based financial solution that supports disadvantaged communities through targeted service delivery.

The United States Patent and Trademark Office (USPTO) granted patent number 12282916 on April 22, 2025. The system was originally developed in 2018 and had previously been awarded a patent by the Intellectual Property Office of Singapore in 2021.

The Smart Voucher System enables regulatory bodies to authorize specific service providers, such as hospitals, schools, and privatized enterprises, to deliver goods and services to eligible beneficiaries. It is funded through sales tax revenues and functions as a tax-credit mechanism to support social impact financing tools.

The platform integrates three primary features: advancing financial inclusion, encouraging tax compliance through incentive mechanisms, and mobilizing resources via secure, token-backed vouchers.

Dr. Sami Al-Suwailem, acting director general of IsDBI, said the USPTO’s recognition reflects the Institute’s ongoing efforts to deliver innovative fintech solutions that address socio-economic challenges. He added that IsDBI actively engages with partners to scale the system and similar technologies across its member countries.

Artificial intelligence (AI) is rapidly emerging as a transformative force within the Islamic economy, driving innovation across sectors from finance and food to tourism and education. 

By enhancing Shariah compliance, improving accessibility, and enabling personalized services, the technology is reshaping how the Islamic economy operates, while preserving its ethical foundations.

More broadly, the technology’s potential economic impact is substantial - AI could contribute up to $320 billion to the Middle East's economy by 2030, according to PwC.  

“The synergy between AI and the Islamic economy is immense,” says Badr Saidi, quality manager and technical auditor at Halal Consulting S.L., a Spain-based halal certification body.  

“By leveraging AI in areas like Shariah compliance, ethical finance, halal supply chains, smart cities, tourism, and education, we can drive sustainable growth while staying true to Islamic ethical principles.”

To succeed, Saidi emphasizes the need for collaboration between AI developers, Islamic scholars, and industry leaders to ensure technological advances align with religious values.

Transforming Islamic finance

AI’s most visible impact is unfolding in Islamic finance, where it is streamlining compliance processes, improving fraud detection, and fostering financial inclusion.

“With AI, Islamic banks and financial companies can better understand their customers - how they invest, what they need, and even their risk tolerance,” says Sara Husain Hammad, innovation and technology project manager at Bahrain-based General Council for Islamic Banks and Financial Institutions (CIBAFI). 

“This helps create personalized financial products that comply with Islamic guidelines while still being innovative,” she says.

AI-powered tools are already transforming traditional processes. According to Saidi, machine learning algorithms are now automating the verification of financial transactions to ensure they adhere to Shariah law, avoiding elements such as Riba (interest), Gharar (excessive uncertainty), and prohibited investments.

He adds that AI-driven robo-advisors are also curating tailored halal investment portfolios, while predictive analytics are optimizing Sukuk (Islamic bonds) issuance and improving fraud detection in Takaful (Islamic insurance).

Banks across the Muslim world are already deploying AI. Dubai Islamic Bank (DIB) is using AI tools to assess the Shariah compliance of companies and financial instruments. Bahrain Islamic Bank has launched a digital platform offering access to more than 1,800 Shariah rulings to help simplify complex regulations and encourage industry collaboration. 

Outside of the GCC, Bank Muamalat Malaysia has partnered with Google Cloud to to deploy generative AI and advanced data analytics to help it evolve into a fully digital Islamic institution. Egypt’s Faisal Islamic Bank has embraced AI to modernize and expand its services.

AI is also helping extend financial services to underserved communities. By analyzing alternative data - such as mobile payment history and social behaviour - AI can help individuals with limited credit histories, including those in rural areas or small business owners, to qualify for financing. This supports Islamic finance’s mission of ethical and inclusive banking.

“Combined with Islamic finance’s focus on ethical and community-centered banking, AI can open doors for more people to access financial services in a way that respects their beliefs,” says CIBAFI ‘s Hammad.

Securing the halal supply chain

Beyond finance, AI is shoring up the halal economy by ensuring product traceability, authenticity, and safety. One of the biggest challenges in halal certification is verifying that ingredients and production processes comply with Islamic dietary laws. 

“AI can assist in several ways, including in ingredient label analysis. AI-powered Natural Language Processing (NLP) can scan product ingredient lists and detect potential non-halal components like gelatin, alcohol, or animal-based enzymes,” says Saidi.

AI-powered blockchain platforms now provide end-to-end tracking of halal products, from source to shelf, while computer vision systems monitor production lines for contamination, he adds. Image recognition tools are detecting fraudulent halal logos, and IoT sensors help safeguard halal-certified goods during transportation and storage.

AI is also playing a crucial role in laboratory testing. Advanced spectroscopy and chemical analysis, supported by AI, can identify traces of non-halal substances in food, cosmetics, and pharmaceuticals with high accuracy. Meanwhile, AI-driven analytics are helping businesses forecast demand for halal products, ensuring better inventory management and reduced waste.

However, standardization remains a challenge. According to Saidi, differing certification criteria across countries make it difficult to create a universal AI model, and smaller enterprises may struggle with the costs of adopting these technologies.

Enhancing Muslim-friendly travel

The Muslim-friendly travel market is another area where AI is making strides. According to the State of the Global Islamic Economy Report 2023/24, AI is enabling personalized travel experiences and improving customer service with virtual assistants and predictive analytics.

“Platforms can now generate customized itineraries for Muslim travelers, factoring in prayer times, halal food, nearby mosques, and Muslim-friendly accommodations,” says Saidi.

The Saudi Tourism Authority is pioneering AI-powered services, having recently launched "Sara," a virtual tour guide offering real-time travel advice. The authority has also partnered with Visa to create a Tourism Data Lab to analyze visitor behaviour and spending trends.

Facilitating Islamic education

AI’s role in Islamic education is growing rapidly. NLP models can help scholars and students in deepening their understanding of Quranic and Hadith texts, while AI-based edtech solutions can offer personalized Islamic education and smart learning platforms for different age groups, according to Saidi.

Innovators are developing AI-powered Islamic chatbots, voice assistants, and digital Da’wah tools to facilitate knowledge sharing.

Startups are already making an impact. Pakistan’s Xeven Solutions recently launched Shahada GPT, offering Quranic translations, Hadith explanations, and halal guidance. Similarly, India-based QuranGPT answers religious queries. 

“The primary motivation behind developing QuranGPT was to bridge the gap between religion and modern individuals,” says Raihan Khan, an AI applications engineer and creator of QuranGPT. 

“Nowadays, people don’t want to spend hours flipping through books to find an answer or determine if something aligns with the teachings of the Holy Quran. QuranGPT simplifies this process by providing instant responses in natural language.”

However, combining AI with religious guidance carries significant risks. Without human oversight, AI can easily misinterpret Islamic teachings, spread misinformation, and inadvertently cause harm.

“While AI has the potential to enhance various aspects of the Islamic economy, its intersection with religion must be approached with extreme caution,” Khan warns.

“The biggest concerns lie in the inherent biases of AI models, the risk of misinformation, and the challenge of ensuring religious authenticity. Without strict monitoring, AI could do more harm than good in this space,” he adds.

Limited adoption

Despite AI's promise, adoption in the Islamic economy remains in its early stages. Most Islamic tech startups have yet to fully embrace AI, focusing instead on basic automation rather than sophisticated, AI-driven innovation.

“As of now, AI’s role in fostering innovation in the Islamic economy - particularly in tech startups or digital finance - is minimal,” says Khan. “While AI has the potential to enhance areas like Islamic banking, halal certification, and ethical investment screening, most Islamic tech startups have yet to fully explore or implement AI-driven solutions.”

Solv Protocol, an on-chain fund platform that enables users to earn smart yields on diverse assets via financial NFTs, has introduced a new Shariah-compliant Bitcoin staking product.

SolvBTC.CORE is a liquid staking token developed to meet the principles of Islamic finance. It allows BTC holders to earn yield by helping secure the Core blockchain and participating in decentralized finance (DeFi) activities.

The product was developed in collaboration with Nawa Finance and has received Shariah certification from Amanie Advisors. 

The launch comes as the platform surpasses $2 billion in locked BTC.

The new offering provides Middle Eastern BTC holders with a compliant path to engage in on-chain staking and DeFi, enabling them to earn additional returns on their Bitcoin holdings while adhering to ethical investment standards.

Ryan Chow, founder of Solv Protocol, said the product creates new opportunities for institutional investors in the region. He noted that aligning with both Islamic finance and international regulatory standards could support the broader adoption of digital assets by sovereign wealth funds and traditional financial institutions.

Shaqir Hashim, a core contributor at Nawa Finance, emphasized the high level of BTC ownership in countries such as Saudi Arabia, the UAE, Pakistan, Nigeria, Indonesia, and Malaysia. He said the demand is shifting toward yield-generation solutions aligning with local values and compliance requirements.

Solv Protocol provides infrastructure that enables Bitcoin holders to stake, lend, and invest while earning yield across the DeFi landscape.

The Abu Dhabi National Oil Company (ADNOC) has raised $1.5 billion through ADNOC Murban, the group’s dedicated capital-markets vehicle. 

According to arranging banks, the ten-year sukuk was priced at 60 basis points over comparable US Treasuries and drew investor orders exceeding $3.85 billion.
 
Standard Chartered acted as global coordinator. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital and MUFG joined as active bookrunners.

The transaction follows a $4 billion conventional bond issue completed in September 2024. ADNOC’s chief investment officer, Klaus Froehlich, has said the company expects to raise between $3 billion and $5 billion in the bond market each year, excluding additional financing options such as sukuk.

ADNOC is allocating an initial $23 billion to lower-carbon projects in pursuit of net-zero operations by 2045.

Earlier this year, it also generated $2.84 billion from a secondary offering of ADNOC Gas shares, increasing the subsidiary’s free float to 14%.

Al Dawli Invest Investment Company (KIB Invest) has introduced its first investment product, the Al Dawli Invest Islamic KD Money Market Fund. The fund is aimed at investors seeking short-term, Shariah-compliant placements.  

The open-ended fund will hold highly liquid short- and medium-term Islamic money-market instruments and will offer weekly subscriptions and redemptions. According to the press release, KIB Invest's strategy focuses on capital preservation while delivering returns comparable to Islamic deposit products.  

Fee terms include no up-front or exit charges to help keep investor costs low.  

The firm plans to offer additional funds with varying risk and return profiles. A fund executive committee has been formed to oversee governance and performance.  

KIB Invest is a subsidiary of Kuwait International Bank and specialises in Shariah-compliant investment solutions. The firm said the new fund expands the group’s product set and gives clients a low-risk, high-liquidity option in Kuwaiti dinars.  

Ruya, a UAE-based digital-first Islamic bank has announced that it is integrating virtual assets into its investment platform, enabling customers to buy and sell cryptocurrencies via its mobile app. 

Ruya has partnered with UAE-based Fuze, a licensed operator in the virtual asset space to broaden its investment gamut and promote ethical Islamic wealth building.

The bank aims to empower customers to sustainably participate in the digital economy, said Ruya's chief executive, Christoph Koster. All listed virtual assets meet the institution’s Shariah-compliance standards.    

The launch comes amid rapid growth in the UAE’s digital-asset sector. The country received more than $30 billion in virtual-asset inflows from July 2023 through June last year, marking a 42% increase.   

Ruya said in a statement that the crypto functionality will sit within its broader investment suite, designed to promote long-term, ethical wealth creation rather than short-term speculative trading. 

Customer support for the new product will be available through community centres and hybrid call centres.