Today, crowdfunding , is the alternative product and the strategic line in the development of the financial industry. It is an innovative tool for financing small and medium-sized promising projects.
It is also an important opportunity for small investors to invest their money in a dynamic and distinctive way, whatever the size of the amount provided by the investor.
This type of funding emerged after the 2008 crisis in the United States of America as a result of the expansion of credit granted to the real estate market and led to a catastrophic collapse and inflation rate. It has also blossomed rapidly in Europe as a substitute for other conventional funds that lend on complicated terms and very cumbersome procedures.
The advantage of this new formula is that it appeals to the public to provide adequate amount easily and at lower costs. This tool has received considerable attention from economists who have extensive experience in the field of financial engineering to integrate it into the system as a complement to other tools and financial services. Many Arab countries have resorted to reviewing their laws, which they considered urgent and necessary to establish this innovative and distinctive tool. But also considered it an important means of empowerment and economic integration and has a positive and effective impact on economic and social development, not only to address poverty and unemployment in the absence of a fair distribution of wealth and the marginalization of the vulnerable classes.
Find Out More in Our Next Coming Issue 26