IsDBI Awards Trailblazers in Groundbreaking AI Hackathon for Islamic Finance

In a historic move to bridge cutting-edge technology with the principles of Islamic finance, the Islamic Development Bank Institute (IsDBI) announced the winners of the first-ever Artificial Intelligence (AI) Hackathon in Islamic Finance during the 19th IsDB Global Forum on Islamic Finance, held on 20 May 2025, in Algiers, Algeria. The event ran in parallel with the IsDB Group Annual Meetings and marked a significant step toward innovation-driven transformation in the Islamic financial sector.

Pioneering a New Era in Islamic Finance

The AI Hackathon, launched by IsDBI, was designed as a forward-thinking platform to explore the practical applications of AI in Islamic financial services, with a specific focus on improving the accessibility and implementation of Financial Accounting Standards (FAS) developed by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).

As the Islamic finance industry—currently valued at over US$4 trillion globally—faces mounting complexity in regulatory compliance and cross-border standard harmonization, the integration of Artificial Intelligence offers promising solutions. The Hackathon thus served as a testbed for AI-powered tools that aim to streamline these processes while upholding Shariah principles.

Celebrating Excellence: Hackathon Winners

Dr. Sami Al-Suwailem, Acting Director General of IsDBI, presented awards to the top three teams whose projects demonstrated outstanding innovation, functionality, and alignment with Shariah values:

• First Place – Khilan Team: Recognized for developing a highly intuitive AI assistant designed to interpret and apply AAOIFI standards across multiple jurisdictions with real-time multilingual capabilities.

• Second Place – Al Buraq Team: Awarded for creating a dynamic platform that leverages natural language processing to provide automated compliance checks for Islamic banking contracts.

• Third Place – BANKAI Team: Honored for building a predictive analytics tool that assesses Shariah compliance risk and offers optimization strategies for Islamic financial portfolios.

“These winners exemplify what is possible when deep financial knowledge is paired with technological prowess,” said Dr. Al-Suwailem. “This Hackathon reflects our commitment to advancing the Islamic financial industry using state-of-the-art technologies. We are proud to support the next generation of thinkers and builders shaping the future of Islamic finance through AI.”

A Global Movement for Innovation

Participants in the Hackathon included a diverse pool of students, developers, entrepreneurs, and researchers from across the globe. They collaborated in cross-functional teams to co-develop digital solutions that adhere to Shariah law while enhancing efficiency, scalability, and standardization.

Throughout the competition, teams were mentored by industry experts and academic advisors who guided them in aligning their tools with Islamic finance principles. Submissions were judged on technical feasibility, scalability, user experience, and the potential for real-world application.

Unlocking AI’s Potential in a Shariah-Compliant Framework

One of the most pressing challenges in Islamic finance has been the inconsistent interpretation and application of financial standards across different countries and institutions. The Hackathon addressed this issue by encouraging solutions that translate complex FAS documents into machine-readable formats, provide contextual explanations for compliance, and support real-time auditing.

These innovations are expected to enhance regulatory transparency, support product development, and foster investor confidence in Islamic financial markets. Moreover, they open new doors for AI-driven advisory services, contract automation, and digital onboarding in Islamic banking and Takaful (Islamic insurance).

Strategic Vision: Innovation for Global Impact

The Hackathon aligns with IsDBI’s broader mission to drive innovation, promote knowledge-based initiatives, and scale impact in the Islamic financial ecosystem. The Institute envisions AI not merely as a tool for automation but as a strategic enabler of ethical, inclusive, and sustainable financial growth.

As Islamic finance continues to expand across Africa, the Middle East, Southeast Asia, and parts of Europe, initiatives like the AI Hackathon are essential for equipping the industry with the tools needed to adapt and thrive in a digital-first world.

Dr. Al-Suwailem concluded, “This Hackathon is not just a competition—it is a movement. We are building bridges between technology and tradition, between global talent and local needs, and between innovation and ethics.”

With the success of this inaugural event, IsDBI is expected to make the AI Hackathon an annual feature, further cementing its role as a trailblazer in digital transformation for Islamic finance.