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Crowdfunding - Saudi Arabia

Saudi Arabia

The Crowdfunding market in Saudi Arabia is expected to reach a total transaction value of US$30.0k in 2024.
When comparing globally, it is noteworthy that the United States leads with a projected transaction value of US$465m in 2024.
Saudi Arabia's Crowdfunding market is gaining traction among tech startups seeking alternative capital raising options amidst economic diversification efforts.

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

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Analyst Opinion

The Crowdfunding market in Saudi Arabia has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth of the Crowdfunding market in Saudi Arabia is the changing customer preferences. Saudi Arabian consumers are increasingly looking for innovative ways to support and invest in projects and businesses. Crowdfunding provides them with the opportunity to contribute to projects they believe in and have a stake in their success. This aligns with the global trend of consumers seeking more personalized and meaningful experiences.

Trends in the market: The Crowdfunding market in Saudi Arabia is witnessing a surge in the number of platforms and campaigns. This can be attributed to the increasing awareness and acceptance of Crowdfunding as a viable funding option. Entrepreneurs and small businesses in Saudi Arabia are leveraging Crowdfunding platforms to raise capital for their projects. This trend is fueled by the ease of access to technology and the growing digital literacy among the Saudi population.

Local special circumstances: Saudi Arabia has a young and tech-savvy population, which contributes to the growth of the Crowdfunding market. The country has a high smartphone penetration rate and a large percentage of the population is active on social media platforms. This creates a conducive environment for Crowdfunding campaigns to reach a wide audience and gain traction. Additionally, the government of Saudi Arabia has been supportive of entrepreneurship and innovation, which encourages individuals and businesses to explore alternative funding options like Crowdfunding.

Underlying macroeconomic factors: The growth of the Crowdfunding market in Saudi Arabia can also be attributed to the country's economic diversification efforts. The Saudi government has been implementing various initiatives to reduce its dependence on oil and promote sectors such as technology, innovation, and entrepreneurship. This has created a favorable environment for Crowdfunding platforms to thrive, as they provide a means for entrepreneurs to access capital and bring their ideas to life. In conclusion, the Crowdfunding market in Saudi Arabia is experiencing significant growth due to changing customer preferences, increasing awareness and acceptance of Crowdfunding, the young and tech-savvy population, and the government's support for entrepreneurship. These factors have contributed to the rise in the number of platforms and campaigns in the country. As the Crowdfunding market continues to evolve, it is likely to play a crucial role in supporting the growth of innovative projects and businesses in Saudi Arabia.

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.