This study examines how Artificial Intelligence (AI) enhances Sharia compliance within Islamic Financial Institutions (IFIs) by improving operational efficiency, ensuring transparency, and addressing ethical and technical challenges. A quantitative survey across five Saudi regions resulted in 450 validated responses, analyzed using descriptive statistics, ANOVA, and regression models. The findings reveal that while AI significantly enhances transparency and compliance processes, its impact on operational efficiency is limited. Key barriers include high implementation costs, insufficient structured Sharia datasets, and integration complexities. Regional and professional differences further underscore the need for tailored adoption strategies. It introduces a novel framework integrating ethical governance, Sharia compliance, and operational scalability, addressing critical gaps in the literature. It offers actionable recommendations for AI adoption in Islamic finance and contributes to the global discourse on ethical AI practices. However, the Saudi-specific focus highlights regional dynamics that may limit broader applicability. Future research could extend these findings through cross-regional comparisons to validate and refine the proposed framework. By fostering transparency and ethical governance, AI integration aligns Islamic finance with socio-economic goals, enhancing stakeholder trust and financial inclusivity. The study emphasizes the need for targeted AI training, the development of structured Sharia datasets, and scalable solutions to overcome adoption challenges.

While extensive research has explored interconnectedness, volatility spillovers, and risk transmission across financial systems, the comparative dynamics between Islamic and conventional banks during crises, particularly in specific regions such as Saudi Arabia, are underexplored. This study investigates risk transmissions and contagion among banks operating in Islamic and conventional modes in the Kingdom of Saudi Arabia. Daily banking stock data spanning November 2018 to November 2023, encompassing two major crises—COVID-19 and the Russian-Ukraine war—were analyzed. Using the frequency TVP-VAR approach, the study reveals that average total connectedness for both banking groups exceeds 50%, with short-run risk transmission dominating over long-term effects. Graphical visualizations highlight time-varying connectedness, driven predominantly by short-run spillovers, with similar patterns observed in both Islamic and conventional banking networks. The main contribution of this paper is the insight that long-term investment strategies are crucial for mitigating potential risks in the Saudi banking system, given its limited diversification opportunities.

The distress of commercial companies is considered one of the most critical stages leading to the liquidation and termination of the business. This danger increases in the context of poor management, stagnation, and the occurrence of crises and external circumstances that affect the company’s ability to cope. Rules regarding financial restructuring of distressed commercial companies may be regarded as the most prominent legal framework adopted by Emirati, Kuwaiti and French legislators to address the instability and distress of commercial enterprises and to provide solutions to mitigate the risk of bankruptcy and liquidation. It is a preventive measure aimed at reaching an agreement between the debtor and creditors to resolve the disturbances or difficulties faced by the company, which may affect its obligations to others. Therefore, financial restructuring is considered a mean of prevention and rescue for commercial companies, and the success of this rescue is linked to the debtor’s cooperation and seriousness in overcoming such issue.

The current business environment characterized by volatility, uncertainty, complexity, and ambiguity (VUCA) advances numerous challenges for organizations. To respond effectively to these changing demands, traditional approaches to solving problems often prove inadequate in this dynamic context. A new approach, the ProCESS methodology, was developed and tested in the last three years within an Erasmus+ consortium in four European countries. This approach stimulates unconventional thinking and the finding of creative solutions for real-world business challenges. The aim of this perspective paper is to present the research data collected in two Romanian companies by testing ProCESS methodology. In the discussion section, the paper highlights the potential of this methodology that uses various artistic tools like drawing, music, modeling, or meditation to encourage participants to tap into their sensory, emotional, and spiritual sides for finding new and unexpected solutions. The paper also discusses potential influences on organizational culture and employee well-being.