In Egypt, halal crowdfunding is becoming part of islamic finance acting as an alternative financing instrument to facilitate the implementation of projects for egyptian borrowers who are facing difficulties to raise money through the classical lending channels.
The main difference of halal crowdfunding in Egypt with conventional crowdfunding is the utilisation of the Murabaha principle which allows to finance trade which are underlined by tangible goods. The combination of Islamic finance with crowdfunding will solve the SMEs problems in Egypt. Islamic Crowdfunding encourage cooperation amongst islamic communities in Egypt to collect funds for a business or social project in the country.
Egypt's Investors who are participating in a campaign first purchase the goods and sell it later to the borrower against a profit margin.
For SMEs in Egypt islamic crowdfunding is the real alternative as the banking support including sharia banking financing support for SMEs is generally missing because egyptian financing has served large egyptian corporates mainly.
EGYPT ONLINE ISLAMIC CROWDFUNDING PLATFORMS
EGYPT ISLAMIC CROWNDFUNDER