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CrowdLending (Business) - United Arab Emirates

United Arab Emirates

The United Arab Emirates is projected to reach a total transaction value of €54.67m in the Crowdlending (Business) market market by 2024.
When comparing globally, China is expected to have the highest transaction value, with €14,810m in 2024.
In the United Arab Emirates, CrowdLending platforms are gaining traction as a preferred method for capital raising in the business sector.

Key regions: China, United Kingdom, Brazil, Israel, India

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Analyst Opinion

The CrowdLending (Business) market in United Arab Emirates is experiencing significant growth and development.

Customer preferences: In the United Arab Emirates, businesses are increasingly turning to crowd lending as a source of financing. This is driven by several factors. Firstly, businesses are attracted to the speed and convenience of crowd lending platforms, which allow them to access funding quickly and easily. Additionally, crowd lending offers businesses the opportunity to diversify their sources of financing and reduce their reliance on traditional banks.

Trends in the market: One of the key trends in the crowd lending market in the United Arab Emirates is the increasing number of platforms available to businesses. This is creating a more competitive market, which is driving down interest rates and increasing the availability of funding for businesses. As a result, businesses are able to access financing at more favorable terms, which is fueling the growth of the crowd lending market. Another trend in the market is the increasing use of technology in crowd lending platforms. This is enabling platforms to streamline the lending process and provide businesses with a more efficient and user-friendly experience. For example, many platforms now use algorithms to assess the creditworthiness of businesses and determine the interest rates they are eligible for. This reduces the time and cost involved in the lending process, making it more attractive to businesses.

Local special circumstances: The United Arab Emirates has a vibrant and dynamic business environment, with a large number of small and medium-sized enterprises (SMEs) operating in various sectors. These businesses often face challenges in accessing financing from traditional sources, such as banks, due to strict lending criteria and a lack of collateral. Crowd lending platforms offer an alternative source of financing for these businesses, allowing them to access the funding they need to grow and expand.

Underlying macroeconomic factors: The growth of the crowd lending market in the United Arab Emirates is also influenced by underlying macroeconomic factors. The country has a strong and stable economy, with a high level of disposable income and a growing middle class. This creates a favorable environment for businesses to thrive and attract investment. Additionally, the government has implemented policies to support entrepreneurship and innovation, which is driving the growth of the SME sector. Crowd lending platforms are well positioned to capitalize on these trends and provide financing to businesses in need. In conclusion, the CrowdLending (Business) market in United Arab Emirates is experiencing significant growth and development, driven by customer preferences for speed and convenience, as well as the increasing availability of platforms and technological advancements. The local special circumstances, such as the vibrant business environment and the challenges faced by SMEs in accessing traditional financing, further contribute to the growth of the market. The underlying macroeconomic factors, including the strong and stable economy and government support for entrepreneurship, create a favorable environment for the crowd lending market to thrive.

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.