Skip to main content
  1. Market Insights
  2. Financial
  3. Capital Raising
  4. Digital Capital Raising

Crowdinvesting - Saudi Arabia

Saudi Arabia
  • The Crowdinvesting market in Saudi Arabia is projected to reach a total transaction value of US$65.68m in 2024.
  • When compared globally, the United Kingdom leads with a transaction value of US$608m in the same year.
  • Saudi Arabia's growing interest in crowdinvesting is reshaping the capital raising landscape, offering new opportunities for investors and startups alike.

Definition:

The term Crowdinvesting, otherwise know as equity-based Crowdfunding defines a variety of transactions where an unspecified number of investors come together in order to invest in a well-defined purpose. The following segment exclusively considers equity-based Crowdfunding: investments in equity shares or profit-related returns for instanceroyalties or convertible loans. Crowdinvesting has become a popular financing option for start-ups and is considered part of venture capital financing.

Additional Information:

Key players in this market are EquityNet, CrowdCube and Seedrs.

In-Scope

  • Funding of start-up companies and SMEs by an unspecified number of investors in return for equity
  • Investments in equity shares or profit-related returns (e.g. royalties or convertible loans)

Out-Of-Scope

  • Reward-based Crowdfunding
  • Lending-based Crowdfunding
Digital Capital Raising: market data & analysis - Cover

Market Insight report

Digital Capital Raising: market data & analysis

Study Details

    Capital Raised

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Mar 2024

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Average Deal Size

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Global Comparison

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Number of Deals

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Analyst Opinion

    The Crowdinvesting market in Saudi Arabia is experiencing significant growth and development.

    Customer preferences:
    Saudi Arabian investors are increasingly turning to crowdinvesting as a way to diversify their investment portfolios and access new opportunities. The younger generation, in particular, is showing a strong interest in crowdinvesting, as they are more open to taking risks and exploring alternative investment options. Additionally, the rise of digital platforms and the increasing ease of online transactions have made it more convenient for Saudi Arabian investors to participate in crowdinvesting campaigns.

    Trends in the market:
    One of the key trends in the Saudi Arabian crowdinvesting market is the focus on technology and innovation. Startups in sectors such as fintech, e-commerce, and healthcare are attracting significant attention from investors. These sectors are seen as having high growth potential and are aligned with the Saudi Arabian government's vision to diversify the economy and reduce dependence on oil. As a result, we are seeing an increasing number of crowdinvesting campaigns targeting startups in these sectors. Another trend in the market is the emergence of Islamic crowdinvesting platforms. Islamic finance principles play a significant role in Saudi Arabia, and there is a growing demand for crowdinvesting platforms that comply with these principles. These platforms offer Sharia-compliant investment opportunities, which adhere to ethical and religious guidelines. This trend reflects the cultural and religious preferences of Saudi Arabian investors and is expected to continue driving the growth of the crowdinvesting market in the country.

    Local special circumstances:
    Saudi Arabia's Vision 2030, a strategic plan to transform the country's economy, is driving the growth of the crowdinvesting market. The government is actively promoting entrepreneurship and innovation, and crowdinvesting is seen as a key enabler for supporting startups and small businesses. In addition, regulatory reforms have been implemented to facilitate crowdinvesting activities and provide investor protection. These initiatives are creating a favorable environment for the development of the crowdinvesting market in Saudi Arabia.

    Underlying macroeconomic factors:
    Saudi Arabia is the largest economy in the Middle East and North Africa region, and it has a young and tech-savvy population. The country is experiencing a demographic shift, with a growing number of young people entering the workforce and becoming financially independent. This demographic dividend is fueling the demand for investment opportunities, including crowdinvesting. Furthermore, the government's efforts to diversify the economy and reduce dependence on oil are creating new business opportunities and attracting investment in various sectors, which in turn is driving the growth of the crowdinvesting market. In conclusion, the crowdinvesting market in Saudi Arabia is experiencing significant growth and development, driven by customer preferences for diversification and convenience, as well as local special circumstances such as government initiatives and regulatory reforms. The focus on technology and innovation, the emergence of Islamic crowdinvesting platforms, and the underlying macroeconomic factors are all contributing to the expansion of the crowdinvesting market 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.

    Financial

    Access more Market Insights on Financial topics with our featured report

    Digital Capital Raising: market data & analysis - BackgroundDigital Capital Raising: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

    Explore more high-quality data on related topic

    Crowdfunding - statistics & facts

    Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.
    More data on the topic

    Contact

    Get in touch with us. We are happy to help.