Crowdinvesting - GCC

GCC

Highlights

In the GCC country, the total transaction value in the Crowdinvesting market is expected to reach US$70.70m by 2024.
When compared globally, the United Kingdom leads with a transaction value of US$608m in 2024.
In the GCC, Crowdinvesting in the Capital Raising market is gaining traction among tech startups seeking alternative funding sources.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdinvesting market in GCC is experiencing significant growth and development.

Customer preferences: Investors in the GCC region are increasingly turning to crowdinvesting as a way to diversify their portfolios and access new investment opportunities. Crowdinvesting allows individuals to invest in a wide range of projects and businesses, from startups to real estate developments, without the need for large amounts of capital. This appeals to investors who are looking for alternative investment options and want to support local businesses and entrepreneurs.

Trends in the market: One of the key trends in the crowdinvesting market in the GCC is the rise of technology-based platforms that connect investors with entrepreneurs and projects. These platforms make it easier for individuals to discover and invest in opportunities, and provide a streamlined process for entrepreneurs to raise funds. As more investors and entrepreneurs become aware of these platforms, the crowdinvesting market is expected to continue growing. Another trend in the market is the increasing focus on socially responsible investments. Investors in the GCC region are becoming more conscious of the impact their investments have on society and the environment. As a result, there is a growing demand for crowdinvesting opportunities that align with socially responsible principles, such as renewable energy projects or initiatives that support local communities.

Local special circumstances: The GCC region is known for its strong entrepreneurial culture and supportive business environment. Governments in the region have implemented various initiatives to promote entrepreneurship and innovation, including the establishment of startup incubators and funding programs. These initiatives have created a fertile ground for crowdinvesting, as entrepreneurs are actively seeking funding and investors are eager to support local businesses.

Underlying macroeconomic factors: The crowdinvesting market in the GCC is also influenced by macroeconomic factors. The region has a young and growing population, which creates a large pool of potential investors and entrepreneurs. Additionally, the GCC countries have been diversifying their economies away from oil and gas, and are investing heavily in sectors such as technology, renewable energy, and tourism. These efforts are attracting both local and international investors, who see the potential for high returns in these emerging industries. In conclusion, the crowdinvesting market in the GCC is experiencing growth and development due to customer preferences for diversification and socially responsible investments, as well as the presence of technology-based platforms and the supportive business environment in the region. The underlying macroeconomic factors, such as a young population and diversification efforts, further contribute to the growth of the market.

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.