This year’s conference theme is “Islamic Entrepreneurial Finance”, reflecting the fact that there is a pressing issue within Islamic finance sector on the significant unmet needs of Shariah compliant financial services, particularly among micro, small, and medium-sized enterprises (MSMEs). Entrepreneurial finance addresses key questions which challenges all entrepreneurs: how much money can and should be raised; when should it be raised and from whom; what is a reasonable valuation of the startup; and how should funding contracts and exit decisions be structured.
Entrepreneurial finance differs from traditional corporate finance only in the sense that the magnitude of these two problems is larger, thereby requiring contractual solutions that differ from those typically encountered in larger, more established corporations. Thus, the more recent literature analyzes issues in entrepreneurial finance in the context of corporate finance theory. One of the most important issues facing entrepreneurial firms is their ability to access capital. Because such firms are typically not yet profitable and lack tangible assets, debt financing is usually not an option. Consequently, entrepreneurs tend to rely on three primary sources of outside equity financing: venture capital funds, angel investors, and corporate investors. An in-depth treatment of entrepreneurship viewed through an Islamic lens is missing from current field of research on Islamic development.
The IFC 2017 provides the opportunity for new, innovative and creative ideas in the Islamic finance realm to enhance the growth of entrepreneurship and economy. The challenges of entrepreneurs seeking financial assistances and the problems of effectively monitoring and managing moral hazard are obvious in almost all entrepreneurial finance, notably in Islamic entrepreneurial finance as it has to conform to the principles of Shariah.
IFC 2017 is aimed at enabling Islamic finance to complete its ecosystem via extending its horizon to this rather financially excluded group (MSMEs), where it provides the platform to explore alternative infrastructure, products, and other facilities and possible opportunities for entrepreneurs to venture.
Key features for IFC 2017 will include representation of credible entrepreneurs, distinguished scholars, academicians and researchers from esteemed organization, and doctorate students; specialized streams will focus on Islamic entrepreneurial financial opportunities and Islamic entrepreneurship best practices; thought leadership from leading Islamic finance institutions; and panel sessions with practitioners will focus on the growth of Islamic finance and entrepreneurship, the impact of Islamic finance on entrepreneurship development; and much more.
The conference aims to create awareness, inculcate culture of innovating and sharing and more importantly build network between Gulf countries and other Muslim countries. Experts in Islamic Finance will discuss the development of Islamic Finance in Kingdom of Saudi Arabia, explore Islamic entrepreneurial opportunities in the region and discuss alternative facilities for Shariah compliant entrepreneurial projects
The Islamic Economics Institute – KAU
Chair: Prof. A. Islahi the chief editor of KAU-IEI journal