Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - United Arab Emirates

United Arab Emirates

The United Arab Emirates is projected to reach a Total Capital Raised of €610.90m in the Venture Capital market market by 2024.
In the country, the Early Stage dominates the market with a projected market volume of €271.70m in the same year.
Globally, the United States will lead in Capital Raised, generating €125,300.0m by 2024.
United Arab Emirates' Venture Capital market is experiencing a surge in funding for tech startups, fueled by government initiatives and an entrepreneurial ecosystem.

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

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Analyst Opinion

The Venture Capital market in United Arab Emirates is experiencing significant growth and development in recent years.

Customer preferences: Investors in the United Arab Emirates are increasingly turning to venture capital as a means of diversifying their investment portfolios and seeking higher returns. This is driven by a growing awareness of the potential for high-growth startups to disrupt traditional industries and create significant value. Additionally, investors are attracted to the potential for early-stage investments to generate outsized returns, as well as the opportunity to support innovation and entrepreneurship in the region.

Trends in the market: One key trend in the Venture Capital market in United Arab Emirates is the increasing number of venture capital firms and funds being established in the country. This is driven by a combination of factors, including the government's efforts to promote entrepreneurship and innovation, as well as the growing interest from local and international investors. These new players are injecting fresh capital into the market and providing much-needed funding for startups at various stages of growth. Another trend is the focus on specific sectors within the Venture Capital market. While the market is relatively diverse, there is a particular emphasis on sectors such as technology, e-commerce, fintech, and healthcare. This reflects both the global trends in these industries and the local demand for innovative solutions in areas such as digital transformation, financial services, and healthcare delivery.

Local special circumstances: The United Arab Emirates has a number of unique characteristics that contribute to the development of its Venture Capital market. One such factor is its strategic location as a gateway between East and West, which attracts international investors and provides access to a wide range of markets. Additionally, the country has a strong focus on diversifying its economy away from oil and gas, leading to increased investment in sectors such as technology and innovation. Furthermore, the government of the United Arab Emirates has implemented a range of policies and initiatives to support entrepreneurship and innovation. This includes the establishment of free zones, such as Dubai Internet City and Abu Dhabi Global Market, which provide a favorable regulatory environment for startups and venture capital firms. The government has also launched various funding programs and initiatives to support early-stage startups and encourage investment in the sector.

Underlying macroeconomic factors: The growth and development of the Venture Capital market in United Arab Emirates are underpinned by several macroeconomic factors. The country has a stable and diversified economy, with a strong focus on sectors such as tourism, real estate, and financial services. This provides a solid foundation for investment and supports the growth of startups and innovative businesses. Additionally, the United Arab Emirates has a young and dynamic population, with a high level of digital literacy and a strong entrepreneurial spirit. This creates a fertile environment for the development of innovative startups and attracts both local and international investors. In conclusion, the Venture Capital market in United Arab Emirates is experiencing significant growth and development, driven by customer preferences for diversification and high returns, as well as the government's support for entrepreneurship and innovation. The increasing number of venture capital firms and funds, the focus on specific sectors, and the unique local circumstances all contribute to the growth of the market. The stable and diversified economy, as well as the young and dynamic population, provide a solid foundation for investment and support the development of startups and innovative businesses.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of 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), 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.

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.