Project: Developing & Enabling Shariah Compliant Community Shares
Co-operatives UK (CUK) will develop guidance for Shariah compliant community shares and pilot Shariah compliant share offers. It will work with Amanah Advisors to determine circumstances in which community shares could be considered Shariah compliant and pilot several Shariah compliant share offers to provide proof of concept. CUK will also create the necessary guidance documents and materials to enable further high standard compliant share offers, which will be incorporated into the Community Shares Standard Mark framework. Once a number of pilots have been tested, they can be used as case studies to market this offer more widely.
By creating appropriate guidance and a model to deliver Shariah compliant community share offers, CUK will open up an opportunity for Muslim communities and community businesses that adhere to Shariah principles to access flexible, mission-aligned capital. It will also benefit community businesses operating in more multicultural areas, by enabling them to engage and appeal to a broader range of investors from their local communities, which is important for the development and sustainability of community enterprises.