Project Financing Models for Small Medium Property Enterprises in the Framework of Maqasid Al-Shari’ah

Alia Gemala Alidinar, Ascarya Ascarya, Nurul Huda and Abrista Devi ()
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Abrista Devi: Perumahan Haji, Jl. Tumenggung Wiradiredja

Chapter Chapter 8 in Wealth Management and Investment in Islamic Settings, 2022, pp 115-133 from Springer

Abstract: Abstract The problem of financing for large, medium and small contractors is on the need for working capital in project implementation. The cost of capital for bank loans is currently still large and burdensome for the entrepreneurs. This study aims to determine whether Islamic banks can act as agents (representatives) of customers to invest in property projects, and whether the purpose of sharia (maqasad Al Shari’ah) can be achieved from the application of the project financing model and what kind of financing model that can be applied either by the banking as well as by property businesses with the project financing model. To arrive at the desired research objectives, several stages are performed. In-depth interviews are conducted to get an idea of the need for new sharia financing products. The result of the interview is used as the basis for designing the model in the application of financing project by using Analytic Network Process (ANP) method framework and the questionnaire model to get the required data. The results of this study indicate that hifzh al-maal is being the main objective of project financing model for small medium property enterprises. To reach the goal, sharia compliance criteria need to be considered properly, with taking profit from halal business takes the highest priority of this sub-criteria cluster. Mudharabah project financing model is suggested to be implemented in order to give the friendly financing for small medium property enterprises.

Keywords: Project financing model; Maqasid Shari’ah; Micro business; Analytic network process (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-19-3686-9_8

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DOI: 10.1007/978-981-19-3686-9_8

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