Artificial Intelligence in Credit Risk Analysis in Islamic Finance

Introduction

The Islamic finance industry is rapidly evolving with the integration of artificial intelligence (AI) technologies in analysis and decision-making processes. Credit risk analysis is one of the key areas where AI can significantly enhance accuracy, speed, and compliance with Shariah requirements. This course provides a comprehensive understanding of how AI technologies can be applied to credit risk assessment within Islamic finance, with practical examples from the Saudi financial market.

Objectives

By the end of this course, participants will be able to:

• Understand credit risk concepts in Islamic finance and how they differ from conventional finance.

• Identify core AI techniques used in credit data analytics.

• Apply machine learning models to assess creditworthiness while maintaining Shariah compliance.

• Analyze practical case studies from the Islamic finance sector in Saudi Arabia.

• Develop effective mechanisms to reduce risks and improve the quality of credit portfolios.

Training Modules

Module 1: Introduction to Islamic Finance and Credit Risk

• Principles of Islamic finance and Shariah compliance

• Definition and sources of credit risk

• Types of Islamic financing products (Murabaha, Ijara, real-estate financing, etc.)

Module 2: Fundamentals of Artificial Intelligence in Financial Services

• Types of credit data

• Introduction to Machine Learning

• Classification models and credit prediction techniques

Module 3: AI Applications in Credit Risk Assessment

• Algorithms for creditworthiness evaluation

• Behavioral credit analysis

• Default prediction and identification of high-risk customers

Module 4: Shariah Considerations in AI-Based Decision Making

• Ensuring Shariah-compliant automated decisions

• Avoiding bias and ensuring fairness in AI models

• Data privacy and ethical considerations

Module 5: Practical Applications in the Saudi Market

• Case studies in real-estate and auto financing

• Building a credit assessment model using real data

• Common tools and software used in the banking sector

Target Audience

• Professionals in Islamic banks and financial institutions

• Credit and risk analysts

• Shariah compliance and governance officers

• AI developers in the financial sector

• Individuals interested in Islamic finance and fintech