An Islamic co-operative housing solution for China’s housing affordability issues

Abstract

Purpose This study aims to propose a new housing affordability solution by combining the Islamic finance concept of Musharakah Mutanaqisah (diminishing partnership) with a cooperative and crowdfunding model. The proposed alternative housing loan model is presented to experts in financing and real estate business, whose views and comments were solicited to evaluate the applicability of the proposed model in real world. Design/methodology/approach This is a qualitative study that uses semi-structured interviews to determine the initial thoughts of various stakeholders regarding the adoption and implementation of the proposed model. Findings The majority of experts (interviewees) agreed with and appreciated the model’s original ideas but expressed concern over the absence of community culture and trust in China, which could represent a serious threat to the model’s viability. It is anticipated that the suggested model will be implemented as pilot projects by the local government in places where Islamic culture and faith are more widespread, hence possibly impacting the model’s effective implementation. Research limitations/implications As there are insufficient Islamic financial specialists in China, the limitation of this qualitative study is the small sample size. If certain policymakers could participate, the outcomes would be more hierarchical and trustworthy. Originality/value This is, to the best of the authors’ knowledge, the first study of its kind to examine the viability of this innovative Islamic cooperative housing finance scheme within the context of a specific housing issue in China.

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“…This is in line with Arif’s (2015) observation that riba causes various moral, social and economic problems. Therefore, if MSMEs abide with prohibition of riba , they will instead achieve fairness, social harmony, collaborations, efficient cost of capital, among others (El-Sheikh, 2008; Ma and Taib, 2023), which are key drivers to their performance.…”

Bibliometric Analysis of Islamic Crowdfunding: A Literature Review of Its Journey

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“…Islamic crowdfunding has the potential to manage Islamic funds, such as cash waqf and zakat, effectively (Indahsari et al, 2014). Islamic crowdfunding platforms, such as EthisCrowd, provide affordable housing solutions for low-income households in Indonesia (Ma and Md Taib, 2023). Knowledge, belief, and religiosity play a positive role in explaining the intention to donate money online among the Indonesian millennial generation (Kasri and Chaerunnisa, 2021).…”

“…These platforms provide a digital space where individuals can donate or invest in projects promoting social welfare and entrepreneurship (Hendratmi, Ryandono, and Sukmaningrum, 2020), education, or other areas of interest within the Islamic community. Consequently, Islamic crowdfunding has the potential to support various sectors, including book publishing (Ishak and Rahman, 2021), contribute to sustainable development (Testa et al, 2019), affordable housing (Ma and Md Taib, 2023), and zakat donations (Adnan et al, 2023).…”