Market Insights Financial Capital Raising

Traditional Capital Raising - United Arab Emirates

United Arab Emirates

The United Arab Emirates is expected to witness a Total Capital Raised of €632.90m in the Traditional Capital Raising market market by 2024.
Venture Capital is set to lead the market with a projected volume of €610.90m in the same year.
When compared globally, the United States is anticipated to generate the highest Capital Raised amount of €145,900.0m in 2024.
Amidst a growing interest in Islamic finance, the United Arab Emirates sees a surge in Sukuk issuance for Traditional Capital Raising.

Key regions: Israel, Brazil, United States, Europe, United Kingdom

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The Traditional Capital Raising market in United Arab Emirates has been experiencing significant growth in recent years.

Customer preferences: Investors in the United Arab Emirates have shown a strong preference for traditional capital raising methods such as initial public offerings (IPOs) and debt issuance. This can be attributed to the cultural preference for stability and conservative investment strategies. Additionally, the country's strong regulatory framework and investor protection laws have also contributed to the popularity of traditional capital raising methods.

Trends in the market: One of the key trends in the Traditional Capital Raising market in United Arab Emirates is the increasing number of IPOs. Companies in various sectors, including technology, real estate, and financial services, have been going public to raise capital for expansion and growth. This trend can be attributed to the strong investor demand for new investment opportunities and the government's efforts to promote the development of the capital markets. Another trend in the market is the growing popularity of debt issuance. Companies in United Arab Emirates have been tapping into the bond market to raise funds for various purposes, such as refinancing existing debt, funding acquisitions, and financing capital expenditures. This trend can be attributed to the low interest rate environment and the availability of liquidity in the market.

Local special circumstances: The Traditional Capital Raising market in United Arab Emirates is influenced by several local special circumstances. One of the key factors is the presence of sovereign wealth funds, which play a significant role in the country's capital markets. These funds provide a stable source of capital and contribute to the overall liquidity and stability of the market. Another special circumstance is the government's focus on diversifying the economy away from oil dependence. This has led to increased investment in sectors such as technology, renewable energy, and infrastructure, which in turn has created opportunities for companies to raise capital through traditional methods.

Underlying macroeconomic factors: The growth of the Traditional Capital Raising market in United Arab Emirates can be attributed to several underlying macroeconomic factors. One of the key factors is the country's strong economic growth, driven by diversification efforts and government investments. This has created a favorable environment for companies to raise capital and expand their operations. Additionally, the country's stable political environment and investor-friendly regulations have also contributed to the growth of the capital raising market. Investors have confidence in the transparency and integrity of the market, which has attracted both domestic and international capital. In conclusion, the Traditional Capital Raising market in United Arab Emirates is experiencing significant growth, driven by customer preferences for stability and conservative investment strategies, as well as the government's focus on diversifying the economy. The increasing number of IPOs and debt issuances, along with the presence of sovereign wealth funds, are key trends in the market. The strong economic growth and investor-friendly regulations are underlying macroeconomic factors that have contributed to the development of the market.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average deal size, and the number of deals.

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 data from OECD, 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, CPI, number of small and medium-sized enterprises (SME), and new businesses registered (number). 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.