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Insights into financial reporting practices in the metaverse: evidence from Islamic financial institutions in Bahrain

Zakeya Sanad (Department of Accounting Finance and Banking, Ahlia University, Manama, Bahrain)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 13 June 2024




This study aims to assess how prepared and flexible accounting professionals are to produce financial accounts that adhere to Shariah regulations in the metaverse. The study also highlights the potential positive and negative effects of metaverse utilization on the financial reporting quality of Islamic financial institutions (IFIs).


A questionnaire was distributed to a random sample of 102 accounting professionals employed in IFIs in Bahrain.


The capacity to provide real-time reporting within the metaverse would enhance the quality and reliability of Islamic financial reporting. Furthermore, the fluctuating values of digital assets in the metaverse pose a significant challenge to ensuring accurate financial reporting. IFIs fail to create an environment suitable for transitioning to the metaverse. Moreover, the participants expressed concerns about how the rapid expansion of the metaverse may challenge the adherence to Shariah governance principles in virtual financial transactions. They further recommended that the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) establish explicit directives on Shariah governance in the metaverse.

Practical implications

Various IFIs’ stakeholders, including practitioners, shareholders and employees interested in adopting the metaverse technology, can benefit from the findings of the studies. In addition, the study could help Islamic banks in Bahrain better grasp the readiness and adaptability of accounting professionals. This understanding would aid in establishing robust financial reporting standards that align with Shariah principles in the metaverse.


This research examines the metaverse through the lens of Islamic financial reporting, offering recent evidence on technological developments and financial reporting practices within an Islamic context. The research findings would contribute to advancing the knowledge among academics, professionals and all interested parties concerning the effects of metaverse implementation on Shariah governance principles and the quality of financial reporting. The study findings would offer policymakers and regulators in the Islamic finance sector essential insights.



Sanad, Z. (2024), "Insights into financial reporting practices in the metaverse: evidence from Islamic financial institutions in Bahrain", Journal of Islamic Marketing, Vol. ahead-of-print No. ahead-of-print.



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