Beehive becomes first P2P platform to be recognized under Sharia law

Clyde & Co, an international law firm operating primarily in the Middle East and North Africa, has announced that it has advised Beehive on its Sharia certification. Beehive announced earlier this week that it had received its certification. The P2P lending platform received approval from the Shariyah Review Bureau. The certification makes Beehive the first P2P platform in the world to have its processes independently confirmed by a third party to comply with Shariah principles.

Beehive’s certification as Shariah-compliant is said to “shed light on the continued innovation of Islamic finance products in new areas such as crowdfunding, and highlights Dubai’s growing role as a global capital for Islamic finance”.

“This certification highlights the growing role Islamic finance is playing across sectors that typically rely on more traditional financing methods,” said Adil Hussain, Global Head of Islamic Finance at Clyde. “SMEs and other clients are looking for cost-effective, Shariah-compliant financing solutions to grow their businesses. We are seeing a lot of demand for this type of financial services, particularly in the healthcare and education sectors. We expect Beehive’s Shariah-compliant P2P platform to be popular among businesses and investors.”

Beehive chief operating officer Paul Boots said: “The service provided by Clyde’s Islamic finance team was invaluable in achieving this accreditation.” He described their advice as “invaluable”.

Founded in 2014, it has secured 15 million dirhams ($4 million) in loans since November last year. Individual investors can invest a minimum of 100 dirhams (UAE local currency) in each business listed on the platform, and then receive monthly repayments at a target interest rate of 8%-20% of the cost. Beehive also contains a secondary market for P2P loans, so investors may sell or buy funds. Beehive launched Beehive Asia in August 2015 to cater to businesses and investors in Thailand.

JPM compiled from

Crowdfund Insider, P2P Lender Beehive Aided by Clyde&Co`s Islamic Finance Team with Sharia Certification, by JD Alois.