iBAF2026 strengthens academia‑industry network, shaping future of Islamic finance

KUALA LUMPUR, 23 SEPTEMBER 2026 —

The 12th Islamic Banking, Accounting and Finance International Conference (iBAF2026) convened around 400 delegates from Morocco, Turkey, Nigeria and Saudi Arabia and featured 131 papers, according to the conference programme released by Universiti Sains Islam Malaysia (USIM).

The three‑day event, held in Sepang, was opened by Tan Sri Dato’ Seri Abdul Wahid Omar, Pro Canselor USIM. Its theme – “Future‑Ready Islamic Accounting, Banking and Finance: Integrating Artificial Intelligence, Sustainability and Governance” – set the agenda for discussions on how technology and ESG considerations can be woven into Sharia‑compliant financial systems.

More than half of the presentations came from academic institutions, including Universitas Budi Luhur, UIMSYA Indonesia, UIN Cirebon, Universiti Kuala Lumpur (UniKL), UNITAR International University and Universiti Teknologi MARA (UiTM). Dr Nazratul Aina Mohamad Anwar, director of iBAF2026, said the conference’s success would be measured not only by the volume of sessions but by the durability of networks formed for research, student development and industry collaboration.

Student participation was boosted by a Maybank Islamic Zakat fund that allocated 52 slots for postgraduate presenters. The USIM Centre for Wakaf and Zakat (PWZ) also subsidised travel for several scholars. Both sponsors highlighted the dual benefit of exposing students to leading academics and practitioners while channeling zakat‑derived wakalah funds to support research that benefits asnaf communities.

Maybank Islamic’s Shariah Committee chairman, Dr Akhtarzaite Abdul Aziz, delivered a keynote titled “Future‑Ready Islamic Finance: Innovation with Purpose.” He warned that new fintech solutions must remain rooted in Shariah values and deliver tangible social benefit, echoing the conference’s emphasis on purpose‑driven innovation.

Strategic partnerships announced at iBAF2026 include a memorandum of understanding between USIM and Kazan Federal University in Russia, the launch of USIMPay under Bank Islam Malaysia’s Payment Service Agent (PSA) framework, and the creation of a USIM Islamic Finance Alumni Chapter. The PSA arrangement, detailed in a statement from Bank Islam Malaysia Berhad, enables USIM students to process digital payments using a Shariah‑compliant platform, thereby gaining practical experience in Islamic fintech.

The conference’s focus on artificial intelligence and sustainability aligns with recent regulatory guidance from Bank Negara Malaysia, which has urged financial institutions to embed ESG metrics into risk assessments. Analysts at CIMB Securities noted that the convergence of AI and Islamic finance could accelerate product development, particularly in sukuk issuance and murabahah financing, though they cautioned that robust Shariah governance will be essential.

For the Malaysian market, iBAF2026 offers a pipeline of talent equipped to support the country’s growing Islamic finance sector, which posted RM46.2 billion in sukuk issuance in 2025, according to data from the Securities Commission. The exposure of postgraduate researchers to international best practices may help domestic banks expand their digital offerings, a priority highlighted in Bank Negara’s 2026 Financial Stability Review.

Industry players also stood to benefit from the networking opportunities. Representatives from Bank Islam Malaysia, Maybank Islamic and several takaful operators attended panels on AI‑driven risk modelling. A senior manager at Maybank Islamic, who spoke on the sidelines, said the conference reinforced the bank’s plan to launch an AI‑enhanced murabahah platform by Q2 2027, though he declined to disclose specific timelines.

Looking ahead, Dr Nazratul Aina warned that sustaining the momentum will require formal research collaborations and joint funding mechanisms. She suggested that the alumni chapter could serve as a conduit for industry‑sponsored scholarships and internship programmes, thereby creating a feedback loop between academia and practice.

If the relationships forged at iBAF2026 translate into joint publications, student placements and co‑developed fintech solutions, the sector could see a measurable boost in innovation output. CIMB’s head of Islamic research projected that such collaborations might lift the number of AI‑related Islamic finance patents in Malaysia from the current handful to double digits within three years.

The conference concluded with a consensus that the future of Islamic finance hinges on integrating cutting‑edge technology, sustainable practices and rigorous Shariah oversight. As USIM and its partners move from dialogue to implementation, the next wave of talent and research could reshape product design, risk management and market outreach across the region.