Activating Investment Sukuk through Crowdfunding Platforms: An Evaluation of the Saudi Experience

The study aimed to verify the effectiveness of activating investment instruments through crowdfunding platforms to evaluate the Saudi experience from the point of view of users of crowdfunding platforms who have a real experience in investing through these platforms. To achieve the study objectives, the researcher used the analytical descriptive approach by applying the electronic questionnaire to a random sample of 120 users. The results revealed that the reality of applying the regulatory, legislative, legal and economic dimensions in supporting the activation of investment instruments through crowdfunding platforms in Saudi Arabia was high. The results also revealed a range of challenges facing investors in crowdfunding platforms, most notably weak transparency and disclosure, difficulty in verifying the credibility of projects, limited exit options and weak liquidity, as well as the lack of adequate legal protection and some legitimate and cognitive risks. The study recommended that regulatory and legislative frameworks related to crowdfunding platforms and investment instruments should be further developed to keep pace with global technical and financial developments and enhance investor confidence.