Trust, legitimacy and oversight: drivers of Shariah-compliant robo-advisory adoption in Oman

Purpose As financial technologies evolve, Muslim investors face unique challenges in aligning automated investment tools with Islamic principles. This study explores the adoption of Shariah-compliant robo-advisory (SCRA) services among retail investors in Oman. Design/methodology/approach The study surveyed 337 retail investors in Muscat, Oman, and tested the proposed model using partial least squares structural equation modeling (PLS-SEM). The theoretical framework draws primarily on the theory of planned behavior (TPB), with legitimacy theory used to explain the role of perceived legitimacy in the model. Findings The findings reveal that digital financial literacy significantly enhances trust in technology, which positively influences perceived legitimacy and adoption intentions. However, strong religious commitment increases the perceived need for human oversight, reducing acceptance of fully automated tools. Similarly, perceived risk of misguidance negatively affects adoption, though legitimacy mitigates this effect. The results underscore that trust, credibility and religious assurance are essential to foster SCRA adoption. Practical implications Financial institutions can use these findings to pair automated portfolio management with accessible Shariah scholar review, invest in digital and financial literacy programmes and pursue certification from national Shariah boards; regulators such as Oman's Capital Market Authority and Central Bank of Oman can draw on the results to set governance standards for AI-based advisory platforms. Originality/value The study highlights the importance of Shariah governance frameworks, inclusion of religious scholars in system design and investor education, thereby enriching the Islamic fintech adoption literature in the Gulf.