Year
2018
Country
Qatar
Language
English
Abstract
| This paper examines Venture Waqf (VW) as a new institution with the specific purpose of successfully developing impactful SME businesses that also integrate the positive motivation of compassion in financial contracting. The suggested model combines the features of European venture philanthropy institutions, the profit motive of Islamic financial contracts and the Islamic society’s various compassionate institutions. The paper suggests an operational model of VW anchored by a new financial contract known as Equity-at-Default (EaD) with inbuilt exit strategies, both for normal conditions replacing collateral and default scenarios replacing foreclosure. In this manner, VW using EaD concept has the potential to offer a fundamental reform of the current lending architecture which is based on collateral at one end of the contract and foreclosure at the other end. We undertake the discussion within the paradigmatic framework of a circular economy and expect future research in this theme could also be more useful. |
English
City
Doha, Qatar
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CIS Program Old
CIS publications
No
CIS Thesis
No