Crowd Funding and its Application in Islamic Finance. Issues and Challenges

Project Report from the year 2014 in the subject Business economics - Investment and Finance, grade: 3.67, course: Chartered Islamic Finance Professional, language: English, abstract: The Islamic crowdfunding concept despite of no history as such in the past are still much demanded and appraised in the Islamic as well as conventional economies. Also, in the backdrop of a rising global Muslim population, attractiveness of the much necessitated halal products and services and increasingly conscious investors, the Islamic CF platform will serve to narrow the financing/funding gap which is currently posing a threat to striving entrepreneurships and subsequent economic growth and social benefit, especially in low-income and developing economies. Islamic value driven approach fits well within the growing fascination towards socially responsible and ethical investing. This paper has discussed the Islamic CF portals available in the Muslim world and how their mechanism is being applied. These platforms are not limited to Muslim communities rather they are general public focused and economic growth driven engines which if used with efficacy can result in astounding results.. We believe that if Islamic CF is made available to the financially inclusive economies, it will be beneficial for them for their development. Furthermore, to overcome religious and social barriers in order to vitalize economic progress resulting from innovative and creative entrepreneurship, Islamic CF platform will follow a more proactive approach regarding those projects which create positive value, over and above financial gain, such as those supporting the growth of green economies, conservation of resources, sustainable development, job creation and specifically, etc.