Market Insights Financial Capital Raising Digital Capital Raising

Crowdinvesting - United Arab Emirates

United Arab Emirates

The United Arab Emirates is poised to witness a total transaction value in the Crowdinvesting market reaching €4.06m in 2024.
When compared globally, it is evident that the highest transaction value is recorded the United Kingdom (€558m in 2024).
In the United Arab Emirates, Crowdinvesting in the Capital Raising market is gaining traction among tech startups seeking alternative funding sources.

Key regions: Europe, Australia, Brazil, China, Israel

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Analyst Opinion

The Crowdinvesting market in United Arab Emirates has been experiencing significant growth in recent years.

Customer preferences: One of the key reasons for the development of the Crowdinvesting market in United Arab Emirates is the increasing preference of customers for alternative investment options. Traditional investment avenues such as stocks and real estate have become crowded and less lucrative, leading investors to seek out new opportunities. Crowdinvesting provides individuals with the chance to invest in a diverse range of projects and startups, allowing them to diversify their portfolios and potentially earn higher returns.

Trends in the market: The Crowdinvesting market in United Arab Emirates has also been influenced by the rise of entrepreneurship and startup culture in the country. With a growing number of entrepreneurs launching innovative businesses, there is a need for funding to support their ventures. Crowdinvesting platforms have emerged as a popular way for these entrepreneurs to raise capital, as they can access a large pool of potential investors. This trend has been further fueled by the government's efforts to promote entrepreneurship and innovation through various initiatives and incentives.

Local special circumstances: The unique characteristics of the United Arab Emirates, such as its strategic location and strong infrastructure, have also contributed to the development of the Crowdinvesting market. The country serves as a hub for businesses in the Middle East and North Africa region, attracting both local and international investors. Additionally, the government has implemented policies to attract foreign direct investment, which has created a favorable environment for Crowdinvesting platforms to operate.

Underlying macroeconomic factors: The macroeconomic factors in the United Arab Emirates have played a significant role in the growth of the Crowdinvesting market. The country has a stable and diversified economy, with sectors such as technology, healthcare, and renewable energy experiencing rapid growth. These sectors are particularly attractive to investors, as they offer the potential for high returns. Furthermore, the government's focus on economic diversification and reducing reliance on oil has led to increased investment in non-oil sectors, creating more opportunities for Crowdinvesting. In conclusion, the Crowdinvesting market in United Arab Emirates is developing due to the changing preferences of customers, the rise of entrepreneurship and startup culture, the unique characteristics of the country, and the underlying macroeconomic factors. As more investors seek alternative investment options and entrepreneurs look for funding, the Crowdinvesting market is expected to continue its growth trajectory in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.