Crowdinvesting - Saudi Arabia

Saudi Arabia

Highlights

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.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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.

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.