A comprehensive Shariah governance framework for Islamic equity crowdfunding: A qualitative analysis

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Habibah Solehah Ramli ORCID logo, Muhammad Shahrul Ifwat Ishak ORCID logo, Nur Syahirah Mohammad Nasir ORCID logo


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This paper explores the significant role of the Shariah governance framework in Islamic equity crowdfunding. Unlike Islamic financial institutions, the current regulatory requirements for Shariah aspects appear lenient (Haniff et al., 2019). Indeed, the absence of a proper Shariah monitoring process could result in serious issues regarding public trust, the status of funds, and the outcome of crowdfunding practices. This study applies a qualitative method as the data were gathered through semi-structured interviews with several experts, including crowdfunding practitioners, financial institutions, Shariah scholars, and entrepreneurs. It is found that the comprehensive Shariah governance framework is vital in ensuring that all of its activities follow Shariah rulings and principles. The crowdfunding philosophy is already in line with Shariah’s spirit in encouraging wealth distribution, improving transparency, and promoting socio justice. This unique alternative finance could support Islamic finance to the extent that its processes comply with Shariah. In this regard, the study proposes a comprehensive Shariah governance framework for Islamic crowdfunding in Malaysia. Since this study is based on qualitative, its findings may not be able to be generalized. However, it still provides valuable contributions in terms of proposing a practical Shariah governance framework of Islamic crowdfunding in Malaysia.

Keywords: Crowdfunding, Islamic Crowdfunding, Shariah Governance

Authors’ individual contribution: Conceptualization — H.S.R.; Methodology — M.S.I.I.; Investigation — N.S.M.N.; Resources — M.S.I.I.; Writing — H.S.R.; Supervision — M.S.I.I.; Funding Acquisition — M.S.I.I.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M1, M2, K2, G3, P4

Received: 02.03.2023
Accepted: 05.12.2023
Published online: 07.12.2023

How to cite this paper: Ramli, H. S., Ishak, M. S. I., & Nasir, N. S. M. (2023). A comprehensive Shariah governance framework for Islamic equity crowdfunding: A qualitative analysis [Special issue]. Journal of Governance & Regulation, 12(4), 333–343. https://doi.org/10.22495/jgrv12i4siart13