Emir Camdzic

This study addresses FinTech implementation challenges in the banking industry in Palestine. This was accomplished by adopting qualitative research methods. Semi-structured interviews were conducted with interviewees from the Palestinian Monetary Authority, banks, and FinTech companies. Thematic analysis was conducted using NVivo 12 software to identify themes in the interview scripts. Research outcomes suggest that FinTech development in Palestine encounters a range of multifaceted challenges, which can be categorised using the TOE (technological, organisational, environmental) framework. On the technological front, issues such as underdeveloped IT and telecommunications infrastructure, restricted mobile frequencies due to Israeli occupation, limited IT expertise, cyber risks, low digital literacy, and minimal FinTech awareness hinder progress. Organizationally, resistance to change, inadequate agility, limited digital skills, and slow Sharia compliance updates in Islamic banking impede innovation. Environmentally, the absence of a dedicated FinTech framework, unclear regulatory guidance, limited market size, and strict AML/CFT regulations create uncertainties for non-bank entities and restrict investment opportunities. Addressing these interconnected barriers requires coordinated efforts across legal, financial, and technological sectors to foster FinTech integration and growth in Palestine.

Despite the popularity and uniqueness of Sukuk as an alternative tradable financing tool, the effectiveness of these products in portfolio allocation and diversity is still under constant scrutiny. This paper employs the multivariate BEKK-GARCH (1,1) model to analyse shocks and volatility based on the daily prices of the Dubai Islamic Capital Market (Sukuk Index) and the conventional stock market (DFM Index). Additionally, it applies Johansen co-integration and Granger causality to investigate the persistence of shocks and volatility in long-term relationships, as well as the leading relationship between Islamic and conventional markets. The results validate the impact of their respective news feeds on both Sukuk and stock market indices and demonstrate the persistence of volatility throughout the studied period from April 2009 to December 2020. The causality test reveals a multidirectional relationship effect between Sukuk and stocks, where each is contributing to the other's growth. The study confirms that Sukuk is not a safe haven for portfolio diversification in the Dubai financial market.