Market Insights Financial Capital Raising Digital Capital Raising

Reward-Based Crowdfunding - United Arab Emirates

United Arab Emirates

The United Arab Emirates is projected to reach a total transaction value of €27.17k in the Reward-Based Crowdfunding market by 2024.
When compared globally, the United States leads with a transaction value of €431m in 2024.
Crowdfunding platforms in the United Arab Emirates are gaining popularity as a modern capital-raising method for startups and small businesses.

Key regions: Germany, Brazil, Australia, Israel, United States

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Analyst Opinion

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

Customer preferences: One of the main reasons for the growth in the Crowdfunding market in United Arab Emirates is the increasing number of entrepreneurs and small businesses seeking alternative funding options. With traditional lending sources becoming more stringent in their requirements, many entrepreneurs are turning to Crowdfunding as a way to raise capital for their projects. Additionally, Crowdfunding allows individuals to invest in projects that align with their interests and values, providing them with a sense of ownership and involvement in the success of the venture.

Trends in the market: One of the key trends in the Crowdfunding market in United Arab Emirates is the rise of equity-based Crowdfunding. This form of Crowdfunding allows individuals to invest in a company in exchange for equity or shares. This trend has gained traction due to the potential for high returns on investment and the opportunity to support innovative startups. Equity-based Crowdfunding also provides entrepreneurs with access to a wider pool of potential investors, increasing their chances of securing funding for their ventures. Another trend in the Crowdfunding market in United Arab Emirates is the emergence of niche platforms catering to specific industries or causes. These platforms focus on connecting investors with projects that align with their interests, such as renewable energy, social impact, or technology. This trend reflects the growing demand for more targeted investment opportunities and the desire for investors to support causes that they are passionate about.

Local special circumstances: The United Arab Emirates has a thriving startup ecosystem, with a strong focus on innovation and entrepreneurship. The government has implemented various initiatives to support the growth of startups, including the establishment of free zones and the provision of grants and incentives. This supportive environment has created a conducive atmosphere for Crowdfunding, as entrepreneurs are encouraged to explore alternative funding options to fuel their business ideas. Additionally, the United Arab Emirates has a high level of internet penetration and smartphone usage, making it easier for individuals to access Crowdfunding platforms and participate in investment opportunities. This digital infrastructure has contributed to the growth of the Crowdfunding market in the country, as it enables a seamless and efficient process for both entrepreneurs and investors.

Underlying macroeconomic factors: The United Arab Emirates has a strong economy, driven by sectors such as oil and gas, real estate, and tourism. However, the recent decline in oil prices has prompted the government to diversify the economy and reduce its reliance on oil revenue. This diversification strategy has led to a greater emphasis on innovation and entrepreneurship, creating a favorable environment for Crowdfunding. Furthermore, the United Arab Emirates has a young and tech-savvy population, which is increasingly interested in investing in startups and supporting innovative projects. This demographic shift has contributed to the growth of the Crowdfunding market, as more individuals are willing to explore alternative investment options and take on a higher level of risk in search of potentially higher returns. In conclusion, the Crowdfunding market in United Arab Emirates is experiencing significant growth due to the increasing demand for alternative funding options, the rise of equity-based Crowdfunding, the emergence of niche platforms, the supportive startup ecosystem, the high level of internet penetration, and the government's diversification strategy. These factors, coupled with the country's strong economy and young population, are driving the development of the Crowdfunding market in United Arab Emirates.

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.