[Narrator]

Hello everyone, welcome back to the TokenMinds Training series.
Today we’ll discuss how Islamic banking products like Murabaha, Ijara, and Sukuk can be automated using smart contracts while fully respecting Shariah principles, regulatory requirements, and bank governance.

This session focuses on practical adoption.
We’ll look at how smart contracts fit into real Islamic banking workflows, how operations can become faster and more transparent, and how Shariah compliance can be monitored continuously instead of through manual checks.

Shariah-compliant smart contracts are automated agreements that enforce Islamic finance rules by design.
They verify asset ownership, control profit disclosure, and manage risk sharing without manual intervention.
These contracts run on permissioned blockchain networks and act as a settlement and record layer, while banks continue using their existing systems through secure APIs.

Islamic banks face several operational challenges.
Asset ownership must be proven for every transaction.
Verification and settlement often take days or weeks.
Audit data is spread across multiple systems, making reconciliation difficult.
As product volumes grow, costs and risks increase at the same time.

Smart contracts help remove these bottlenecks.
Transactions are executed faster.
Operational and compliance workloads are reduced.
Shariah rules are enforced automatically by the system.
Audit trails are clear and easy to verify.
Banks can scale transaction volumes without increasing risk.

Dubai Islamic Bank manages large volumes of Murabaha, Ijara, and Sukuk products.
Before automation, processes relied heavily on manual documentation and disconnected systems.
This led to slow execution, higher costs, and complex audits.
With Shariah-compliant smart contracts, ownership verification and settlement were automated, reducing execution time from days to hours while maintaining full governance control.

In Murabaha financing, smart contracts control the full transaction lifecycle.
The contract is deployed with Shariah-approved rules and linked to an asset registry.
The bank’s ownership is enforced before resale.
Asset delivery is confirmed through trusted data sources.
Ownership is then transferred automatically to the customer, and installment payments follow a strict non-interest structure.

For Ijara leasing, smart contracts ensure the bank owns the asset throughout the lease period.
Rental payments are calculated automatically without interest components.
Payments are scheduled and executed on time.
All lease events are recorded in an immutable system.
Ownership transfer at the end of the lease is handled cleanly if required.

Smart contracts support asset-backed Sukuk issuance.
Each Sukuk is linked to verified assets recorded on-chain.
Tokens represent proportional ownership of those assets.
Returns are calculated strictly from asset-generated profits.
Profit distribution is automated, with continuous Shariah compliance monitoring.

These solutions do not replace core banking systems.
API gateways connect smart contracts to platforms like Temenos or Oracle Flexcube.
Trusted data sources provide ownership, delivery, and pricing updates.
Payments run through existing rails such as SWIFT or RTGS.
Accounting systems are updated automatically for audit and reporting.

TokenMinds helps banks translate Shariah-approved rules into production-ready smart contracts.
We deliver full integration with core banking, payment, and accounting systems.
Banks retain full control, governance, and audit visibility.
The result is faster execution, stronger compliance, and scalable Islamic banking operations.

Thank you for watching.

If your institution is looking to modernize Murabaha, Ijara, or Sukuk operations while maintaining strict Shariah compliance, TokenMinds is ready to help you move from manual processes to automated, scalable systems.