Crowd Funding, contemporary financial issues, Islamic finance, collective ownership

Abstract

This research addresses the topic of Crowd Funding as one of the contemporary financial issues that emerged from the need to finance projects and innovative ideas outside the traditional financing framework. The study aims to clarify the Islamic legal ruling on the various forms of Crowd Funding in terms of jurisprudential legitimacy, required conditions, and the position on regulating it within financial systems.

The researcher relied on an inductive, analytical and comparative methodology, tracing common types of Crowd Funding such as donation-based Crowd Funding, reward-based Crowd Funding, equity Crowd Funding, and debt-based Crowd Funding. These forms were analyzed in light of Islamic legal guidelines and compared across different jurisprudential schools.

The study reached several conclusions, the most prominent of which are:

• Crowd Funding is permissible in some of its forms if conducted according to Sharia requirements, such as avoiding usury (riba) and excessive uncertainty (gharar).
• The necessity of regulating Crowd Funding in a way that preserves the rights of all parties and reduces exploitation and fraud.
• The need for regulatory and Sharia institutions to establish a Sharia-compliant framework suitable for this new financing model.

Among the most important recommendations of the research are: strengthening the role of Sharia boards in evaluating Crowd Funding models, and the necessity of establishing Crowd Funding platforms that are compliant with Islamic law and operate under institutional supervision.