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AMMAN — Economists stressed that “crowdfunding” constitutes a "bridge" linking entrepreneurial ideas and great ambitions towards a promising future as it promotes innovation and ensures the protection of stakeholders in light of a flexible regulatory and legislative framework.
In remarks to the Jordan News Agency, Petra, economists argued that the technical infrastructure is ready, and the entrepreneurial community is thirsty to unleash its energies and turn the challenge into a real economic opportunity, seeing that the crowdfunding experience in Jordan is still in its infancy.
Crowdfunding based on lending is defined according to the Finance Companies Law, as "collecting funds from participants to grant direct credit to borrowers through an electronic platform dedicated to this purpose."
Banking and financial consultant Marwan Khouli stressed that this mechanism allows entrepreneurs to access initial capital relatively quickly, and provides them with a platform to test the project idea in the market by attracting funders from the public, as it enhances transparency and encourages building a supportive community around the project from its beginnings.
Khouli called for strengthening awareness and training programmes to raise the awareness of entrepreneurs and investors ofits benefits and risks, supporting the technical infrastructure of local platforms and linking them to the wider financial market.
Professor of economics at the Hashemite University AlaaBashairaexplained that crowdfunding is a contemporary and expanded concept of the idea of Takaful financing funds, to raise funds from a large number of people through licensed digital platforms.
She explained that crowdfunding helps provide funding for startups or small projects that banks are usually reluctant to finance, she said, explaining that the presence of a large number of financiers helps minimise and distribute risks to investors.
Economic analyst Adly Kandah explained that crowdfunding contributes to enhancing transparency and interaction with the market.
“Crowdfunding is a democratic tool in financing, as it gives ordinary individuals an opportunity to participate in building projects and achieving returns, whether financial or social”.
However, despite its many advantages, Kandahadded that the most prominent drawbacks include the limited funding raised, especially in emerging or small markets, and poor financial literacy in the public in some cases, which may lead to uninformed financing decisions
Kandah pointed out that crowdfunding faces challenges related to market structure and regulation, the likelihood of project failures, or the use of funds in an opaque manner, which could lead to a decline in community trust in this tool, or the possibility of exploiting funding platforms in illegal operations or suspicious activities.
Commercial law specialist Baha Aramouti said that the issue of crowdfunding in Jordan is still not directly regulated and is subject in most cases to general rules and the Associations Law, noting that specific legislation for this type of funding is currently unavailable in the Kingdom.
He explained that implementing crowdfunding campaigns usually requires them to be conducted through licensed and non-profit entities according to the Associations Law, and subject to state oversight, which makes the process more complicated.
CEO of the Jordanian Association for EntrepreneurshipBilal Wadi said that crowdfunding is one of the "most prominent" tools of the modern digital economy, as it has become one of the most important enablers reshaping the concept of entrepreneurial financing worldwide.
"The idea owner no longer has to wait long in front of the doors of banks or investors, but can now directly reach their audience and present their project to the community in an interactive manner that combines promotion with financing, and trust with achievement.
Wadi indicated that statistics show the global crowdfunding market size reached approximately $18.4 billion US in 2024, and it is expected to exceed $20.4 billion in 2025, with a compound annual growth rate of over 15 percent.
"These figures reveal a real global shift in financing trends, reflecting the need for more open and flexible models, and pushing institutions and individuals alike to support entrepreneurial initiatives based on innovation and social creativity," he said.
He pointed out that the digital infrastructure is witnessing a remarkable development, and the youth category has become more interactive with modern concepts of non-traditional financing, pointing out that some Jordanian startups have begun to explore crowdfunding as a strategic option, which is a positive indicator of the readiness of the Jordanian local market to adopt this model.