Financing agricultural activities in Afghanistan : a proposed Salam-based crowdfunding structure

• Published in: ISRA international journal of Islamic finance Vol. 10; no. 1; pp. 52 - 61
• Main Authors: Saiti, Burhan, Afghani, Muhib Allah, Nurdin, Nazrul Hazizi
• Format: Journal Article
• Language: English
• Published: Kuala Lumpur, Malaysia International Shari'ah Research Academy for Islamic Finance 19.06.2018; Emerald Publishing Limited; Emerald Group Publishing Limited
• Subjects: Agricultural production; Agriculture; Banking industry; Crowdfunding; Developing countries; Economic growth; Financial services; GDP; Gross Domestic Product; Islamic financing; LDCs; Population; United States > US; Afghanistan; Islamic social finance/Islamic finance; Afghanistan; Crowd-funding
• ISSN: 0128-1976; 2289-4365
• DOI: 10.1108/IJIF-09-2017-0029

Purpose - This study aims to explore the potentials of adopting safow-based crowdfunding for financing the agricultural sector in Afghanistan. Design/methodology/approaeh - It adopts a triangulation approach, consisting of a number of methods used in gathering relevant information about Afghanistan’s agricultural sector, the concept of crowdfunding and salam (forward sale) contract. These methods include library research, reviewing documents provided by Afghanistan’s banks and semi-structured interviews with Islamic finance experts. Findings - This study finds that xafew-based crowdfunding is a viable Sharl'ah-compliant investment platform, which may offer some advantages for both potential investors and farmers or entrepreneurs. Originality/value - The novelty of this paper lies in the proposed structure of xafem-based crowdiunding.