Operationalizing Shariah Governance in Islamic FinTech Platforms in Saudi Arabia: A Normative and Institutional Framework

Abstract

Islamic financial technology platforms in Saudi Arabia face a governance challenge when approved Shariah requirements are translated into automated transactions, digital disclosures, and changing software systems. Institution centered oversight does not fully explain how compliance should be assured throughout these operational processes. This study develops a normative and institutional framework for continuous Shariah governance in digital financial services. It uses conceptual theory building to synthesize institutional theory, Maqasid al-Shariah, Islamic financial governance scholarship, research on algorithmic oversight, and publicly available Saudi regulatory documents. The analysis distinguishes governance authority from technical enforcement and operational evidence without collecting primary data or testing outcomes. The proposed framework specifies five connected layers: institutional governance, Shariah governance, technology and regulatory technology, operational compliance, and governance outcomes and legitimacy. It identifies authorization traceability, controlled system changes, exception monitoring, and corrective feedback as mechanisms linking approved decisions to platform operations. Ten preliminary indicators support future examination of governance implementation without claiming empirical validation. The framework contributes an operational lifecycle architecture that distinguishes enabling controls from their evaluative outcomes. Its application may guide proportionate platform assurance and future independent empirical assessment of Shariah compliance and meaningful customer protection.