DOI :10.26650/B/SS10.2020.017.11   IUP :10.26650/B/SS10.2020.017.11    Full Text (PDF)

An Artificial Intelligence-based Islamic Fintech Model on Qardh-al-hasan for Covid 19 Affected Smes

Shahnawaz KhanM. Kabir HassanMustafa Raza RabbanıMohammad Atıf

The rapid spread of Corona virus 19 (COVID 19) and its associated economic impact has again turned the spotlight on Islamic finance and banking to save the world from its economic consequences. Islamic finance by principle is an ethical finance which intends to help the poor and vulnerable under crisis. It has various financial tools like, Zakat, Sadaqa, Awaqaf and Qardh-Al-Hasan, especially designed for this purpose. Among various tools of Islamic finance, Qardh-Al-Hasan has emerged as the most viable Islamic finance weapon in the fight against the economic consequences of crises like COVID 19 and financial meltdowns. Against such a backdrop, the present chapter explores the possibility how Qardh-Al-Hasan can be used as an Islamic finance tool to help the COVID 19 affected SMEs and individuals. The present study is exploratory in nature as it explores the possibility of Qardh-AlHasan as the landscape in fighting the economic impact of Covid-19 on small businesses and individuals. The study proposes an Artificial Intelligence-based FinTech model to provide a solution for the affected SMEs and individuals to fight the economic consequences of this pandemic and survive. The findings of the chapter suggest that QardhAl-Hasan is a beautiful selfless financial service in Islamic finance which must be used in combination with Fintech like Artificial Intelligence to save the poor and affected SMEs from this pandemic. 


  • Abdullah, M. A., & Owolabi, Y. M. B. (2015). Small and medium enterprises in Muslim countries. IIUM Press. google scholar
  • Ayyagari, M., Demirgüç-Kunt, A., & Beck, T. (2003). Small and medium enterprises across the globe: a new database. The World Bank. google scholar
  • Čihák, M., & Hesse, H. (2010). Islamic banks and financial stability: An empirical analysis. Journal of Financial Services Research, 38(2-3), 95-113. google scholar
  • Demirguc-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2018). The Global Findex Database 2017: Measuring financial inclusion and the fintech revolution. The World Bank. google scholar
  • FCCIB (2020). Gulf countries pledge over $120bn stimulus to combat corona fallout. news/n/news/gulf-countries-pledge-over-120bn-stimulus-to-combat-corona-fallout.html. Accessed on 05/04/2020. google scholar
  • Fink, D. (1998). Guidelines for the successful adoption of information technology in small and medium enterprises. International Journal of Information Management, 18(4), 243-253. google scholar
  • Haider, M., Khan, S., Rabbani, M. R. & Thallasinos, Y.E. (2020). An Artificial Intelligence and NLP based Islamic FinTech Model Combining Zakat and Qardh-Al-Hasan for Countering the Adverse Impact of COVID-19 on SMEs and Individuals. International Journal of Economics and Business Administration, 8(2), 348-361. google scholar
  • Hassan, M. K., & Ashraf, A. (2010). An integrated poverty alleviation model combining zakat, awqaf and microfinance. In Seventh International Conference–The Tawhidic Epistemology: Zakat and Waqf Economy, Bangi, Malaysia (pp. 261-281). google scholar
  • Islamic Development Bank (2020). President of the Islamic Development Bank Group: Covid-19 and Micro, Small and Medium Enterprises, Saving the Global Economy from the Pandemic: Available at; https://www. Accessed on 4 April, 2020. google scholar
  • Khan, S. and Rabbani, M.R., (2020a), Artificial Intelligence and NLP based Chatbot as Islamic Banking and Finance Expert, International Journal of Information Retrieval Research (IJIRR), Special Issue On: Optimization and Convergence of Machine Learning Algorithms for Leveraging IoT, Block chain and Artificial Intelligence. google scholar
  • Khan, S. N., & Usman, I. (2019). A model for English to Urdu and Hindi machine translation system using translation rules and artificial neural network. The International Arab Journal of Information Technology, 16(1), 125-131. google scholar
  • Khan, S., & Mishra, R. B. (2011). Translation rules and ANN based model for English to Urdu machine translation. INFOCOMP, 10(3), 36-47. google scholar
  • Khan, S., Mir, U., Shreem, S. S., & Alamri, S. (2018). Translation Divergence Patterns Handling in English to Urdu Machine Translation. International Journal on Artificial Intelligence Tools, 27(05). google scholar
  • Man, T. W., Lau, T., & Chan, K. F. (2002). The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies. Journal of Business Venturing, 17(2), 123-142. google scholar
  • Mishkin, F. S. (2009). Is monetary policy effective during financial crises? American Economic Review, 99(2), 573-77. google scholar
  • Nieto, M. J., & Fernández, Z. (2005). The role of information technology in corporate strategy of small and medium enterprises. Journal of International Entrepreneurship, 3(4), 251-262. google scholar
  • Pappas, V., Ongena, S., Izzeldin, M., & Fuertes, A. M. (2017). A survival analysis of Islamic and conventional banks. Journal of Financial Services Research, 51(2), 221-256. google scholar
  • Poole, D., Mackworth, A. &Goebel, R. (1998). Computational Intelligence: A Logical Approach. New York: Oxford University Press. ISBN 978-0-19-510270-3. google scholar
  • Rabbani, M. R. (2020a). The competitive structure and strategic positioning of commercial banks in Saudi Arabia. International Journal on Emerging Technologies ,11(3), 43-46. google scholar
  • Rabbani, M. R., & Khan, S. (2020b). FinTech, Blockchain and Islamic Finance: An Extensive Literature Review. International Journal of Economics and Business Administration, 8(2). google scholar
  • Russell, S. J.,& Norvig, P. (2003), Artificial Intelligence: A Modern Approach (2nd ed.), Upper Saddle River, New Jersey: Prentice Hall, ISBN 0-13-790395-2. google scholar
  • Sa’ad, A. A., & Pitchay, A. B. A. (2020). Financing SMEs Through the Islamic Qard al-Hasan: A Proposal of Islamic FinTech Interest-Free Lending for Government Initiatives. In Impact of Financial Technology (FinTech) on Islamic Finance and Financial Stability (pp. 54-64). IGI Global. google scholar
  • Selim, M., & Hassan, M. K. (2020). Qard-al-Hasan-based monetary policy and the role of the central bank as the lender of last resort. Journal of Islamic Accounting and Business Research. google scholar
  • Shahnawaz, K. & Astya, P. (2017). Sentiment analysis: Approaches and open issues. 2017 International Conference on Computing, Communication and Automation (ICCCA), Greater Noida, 2017, pp. 154-158, doi: 10.1109/ CCAA.2017.8229791. google scholar
  • Shahnawaz, K.& Mishra, R. B. (2013). Rule-based approach for handling of case markers in English to Urdu/ Hindi translation. International Journal of Knowledge Engineering and Soft Data Paradigms, 4(2), 138-165., Inderscience Publishers, doi: 10.1504/ijkesdp.2013.058128 google scholar
  • Shahnawaz K., & Mishra, R. B. (2015). An English to Urdu translation model based on CBR, ANN and translation rules. International Journal of Advanced Intelligence Paradigms, 7(1), 1-23. google scholar
  • Shahnawaz, M. R.,(2011). ANN and rule-based model for English to Urdu-Hindi machine translation system. In Proceedings of National Conference on Artificial Intelligence and agents: Theory& Application (AIAIATA 2011) (pp. 115-121). google scholar
  • UN(2020). Coronavirus pandemic: UN report claims nearly 25 million jobs could be lost worldwide: Available at;; Accessed on 4 April, 2020. google scholar
  • Usmani, M.T. (2008), An Introduction to Islamic Financial System, Maktaba Maariful Qurān, Karachi, pp. 10- 221. google scholar
  • Uygur, S. (2009). The Islamic work ethic and the emergence of Turkish SME owner-managers. Journal of Business Ethics, 88(1), 211-225. google scholar
  • Worldbank (2020). Small and Medium Enterprises Finance. Available at; smefinance; Accessed on 4 April, 2020. google scholar
  • Zafar, M. A., Khan, K., Roberts, K. W., & Zafar, A. M. (2015). Local agricultural financing and Islamic banks: is Qard-al-Hassan a possible solution? Journal of Islamic Accounting and Business Research. google scholar
  • Zauro, N. A., Saad, R. A. J., & Sawandi, N. (2016). The moderating effects of financial inclusion on Qardhul Hassan financing acceptance in Nigeria: a proposed framework. International Journal of Economics and Financial Issues, 6(7S). google scholar


Istanbul University Press aims to contribute to the dissemination of ever growing scientific knowledge through publication of high quality scientific journals and books in accordance with the international publishing standards and ethics. Istanbul University Press follows an open access, non-commercial, scholarly publishing.