Key success drivers for implementation blockchain technology in UAE Islamic banking
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- Written by Hisham O.Mbaidin , Mohmma A.Alsmairat , Raid AL-Adaileh
- Category: BA and MIS
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The utilization of blockchain technology is increasingly emerging as a catalyst for significantchanges across multiple industries, including the domain of Islamic finance. This study examinesthe influence of blockchain technology on the factors that contribute to the successful adoption ofblockchain in Islamic banks located in the United Arab Emirates (UAE). The present study employsa cross-sectional survey methodology, encompassing a sample of 344 banking professionals. Theinvestigation utilizes Partial Least Squares Structural Equation Modeling (PLS-SEM) as astatistical technique to examine the association between several crucial variables, namely Trust,Financial Transfers, Operating Expenses, Safety and Security, and the effective implementation ofblockchain technology. The results indicate that these variables have a major impact on theeffectiveness of implementing blockchain technology, confirming its ability to boost the efficiencyof transactions, decrease expenses, and enhance security while adhering to Shariah law. This workmakes a vital contribution to the scholarly discourse around the deployment of technology in thecontext of Islamic banking. In particular, it emphasizes blockchain technology's part in fosteringinnovation within the sector and fostering a culture of compliance with the sector's ethical andoperational standards.