An integrated islamic social financing crowdfunding model for climate and development financing challenges in Somalia

• Main Author: Dirie, Khadar Ahmed
• Format: Thesis
• Language: English; English; English
• Published: 2024
• Subjects: HG Finance
• Online Access: https://etd.uum.edu.my/11606/1/depositpermission.pdf; https://etd.uum.edu.my/11606/2/s904395_01.pdf; https://etd.uum.edu.my/11606/3/s904395_02.pdf; https://etd.uum.edu.my/11606/

Climate-induced disasters limit the development efforts in Somalia due to financing issues. Furthermore, the existing financial mechanisms are insufficient to effectively address these problems. Therefore, this study aims to propose and validate an integrated Islamic social financing crowdfunding (IISFC) model to address these financing issues. Interviews and surveys were utilised as a mixed-methods strategy. The interview data were analysed using content analysis to identify Somalia's climate and development financing issues and followed by the proposal of new viable alternative model known as IISFC model to address the identified issues. Furthermore, the proposed model is lastly validated via stakeholders and experts. Meanwhile a survey data were analysed using Structural Equation Modelling (SEM) to analyse Somali diaspora behaviour towards the proposed model. Based on interviews, this study identified climate and development financing issues as a result proposed an alternative IISFC model, in which Islamic social financing funds (zakat, awqaf, and sadaqat) will be collected in the form of cash via a web-based crowdfunding platform by a reputable institution under the Somalia government or other capable independent Islamic institution. After accumulating the funds, the institution divides funds into various categories to combat the reoccurring climate-related disasters in Somalia, which hinder the country's development efforts. Thus, the model is largely endorsed by the interviewed stakeholders and experts as an alternative comprehensive solutions to Somalia's climate and development financing issues, boosting the Sustainable Development Goals (SDGs) efforts in the country. In addition, the SEM results indicate that the usage of the IISFC model is significantly and positively influenced by the effort expectation, performance expectation, facilitating condition, and social influence of donors. The study's findings could assist Somalia government agencies mobilise climate and development funds from potential donor’s such as the Somali diaspora and other potential contributors to address climate-induced disasters' and development challenges in Somalia