Crowdfunding platforms are developing their Shariah-compliant credentials

When Beehive, a Dubai-based crowdfunding platform, announced in September that the Shariyah Review Bureau had certified it as Shariah-compliant, it was a watershed moment. Craig Moore, founder and CEO of Beehive, says the development made it the first crowdfunding platform in the world to be independently certified in this way.

Crowdfunding has been growing in popularity in recent years and is increasingly making inroads into the world of Islamic finance. Beehive offers debt-based funding, matching up established businesses with investors while bypassing the established finance industry. The debt is repaid along with a profit, rather than interest, to ensure it remains Shariah-compliant. According to Moore, tapping into the world of Shariah-compliant finance offers a way for both sides to benefit.

“We feel that there is a definite demand for new asset classes in the Islamic finance space,” he says. “Islamic investors have always faced challenges with diversifying their investment portfolios due to the limited investment options available that adhere to Shariah principles. Beehive offers access to debt-based crowdfunding that results in faster access to lower-cost financing.”