Market Insights Financial Capital Raising

Digital Capital Raising - United Arab Emirates

United Arab Emirates

The United Arab Emirates is projected to reach a total transaction value of €58.19m in the Digital Capital Raising market market by 2024.
In the same year, MarketCrowdlending (Business) is expected to dominate the market with a projected total transaction value of €54.10m.
When compared globally, the United States leads with the highest cumulated transaction value of €33,380m in 2024.
In the United Arab Emirates, digital capital raising through blockchain technology is gaining traction in the capital raising market, revolutionizing traditional fundraising methods.

Key regions: Brazil, Germany, United States, United Kingdom, China

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Analyst Opinion

The Digital Capital Raising market in United Arab Emirates has experienced significant growth in recent years, driven by customer preferences for convenient and efficient fundraising methods, as well as local special circumstances and underlying macroeconomic factors.

Customer preferences: In the United Arab Emirates, customers have shown a strong preference for digital capital raising methods due to their convenience and efficiency. With the increasing digitization of various industries, individuals and businesses are increasingly turning to online platforms to raise capital. This shift is driven by the ease of accessing a wide range of potential investors, as well as the ability to streamline the fundraising process through digital platforms. Additionally, digital capital raising methods often offer lower costs compared to traditional methods, making them an attractive option for both startups and established companies.

Trends in the market: One of the key trends in the Digital Capital Raising market in United Arab Emirates is the rise of crowdfunding platforms. These platforms allow individuals and businesses to raise capital from a large number of investors, often through small contributions. This trend is fueled by the growing interest in supporting innovative ideas and startups, as well as the desire for individuals to diversify their investment portfolios. Crowdfunding platforms provide a way for entrepreneurs to showcase their ideas and gain access to funding, while investors have the opportunity to support projects they believe in. Another trend in the market is the increasing use of digital securities and blockchain technology. Digital securities, also known as security tokens, are digital representations of traditional securities such as stocks, bonds, and real estate. These tokens are issued and traded on blockchain platforms, providing increased transparency, security, and efficiency compared to traditional securities markets. The use of blockchain technology in the Digital Capital Raising market allows for faster and more secure transactions, as well as the ability to fractionalize assets and open up new investment opportunities.

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 startups and attract foreign investment, such as the establishment of free zones and the introduction of favorable regulations. These local special circumstances have created a conducive environment for digital capital raising, with startups and entrepreneurs actively seeking funding through online platforms.

Underlying macroeconomic factors: The United Arab Emirates has a strong economy with a high level of disposable income and a favorable business environment. The country has a well-developed financial sector and a large pool of potential investors, both locally and internationally. Additionally, the government's focus on diversifying the economy and reducing reliance on oil has led to increased investment in sectors such as technology, healthcare, and renewable energy. These underlying macroeconomic factors have contributed to the growth of the Digital Capital Raising market in United Arab Emirates, as investors seek opportunities to support innovative projects and diversify their portfolios.

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. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

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.