IslamicFinance.de

The current use of Islamic Finance has mainly benefited large corporations. Despite the Shariah focus on community support and involvement, the sector’s contribution to SMEs and social projects is minimal. Combining Islamic Finance with crowdfunding has the potential to address financing issues faced by SMEs. One factor which may boost the growth of the sector is the increased introduction of Islamic finance structures. Most crowdfunding platforms currently use Murabaha and Mudharabah contracts. Other structures which may be considered includes Salam, Ijara and Diminishing Musharaka.