CrowdLending (Business) - GCC | Statista Market Forecast

The total transaction value in the Crowdlending (Business) market market in the country in Gulf Cooperation Council (GCC) is expected to reach US$114.80m by 2024.
When comparing globally, it is evident that China is projected to achieve the highest transaction value, reaching US$16bn in 2024.
In the GCC, CrowdLending in the Capital Raising market is gaining traction as a popular alternative financing option for businesses seeking capital.

Definition:

Crowdlending platforms, otherwise know as lending-based Crowdfunding enable small and medium-sized enterprises to get loans from single or multiple, private and institutional investors via an online brokering platform. On credit platforms such as Funding Circle, OnDeck, Kabbage and Lending Club, businesses can obtain small loans up to a set maximum value. As a rule, financing requests are analyzed by the provider via an internal scoring system and are checked against additional minimum requirements such as turnover. Subsequently, these financing requests can be invested in by private and institutional investors at an appropriate interest rate determined by the credit rating of the company. This makes it possible for SMEs to borrow quickly and easily, as the basic requirements for obtaining finance are more flexible compared to traditional bank loans.

Alternative financing for SMEs and freelancers (bank-independent loans)
Small business loans issued by single or multiple private and institutional investors (non-banks)
Online loan request, scoring and approval

Traditional bank loans
Consumer loans and credit card transactions
Business-to-Business credit scoring and rating services
Online marketplaces for consumer loans (see Marketplace Lending)

The CrowdLending (Business) market in GCC has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the GCC region have played a crucial role in the development of the CrowdLending (Business) market.

With the rise of digitalization and the increasing use of technology, businesses in the GCC have shown a growing interest in alternative financing options. CrowdLending provides an efficient and convenient way for businesses to access capital, without the need for traditional bank loans. This has attracted a large number of businesses in the region, who are looking for flexible financing solutions.

Trends in the market have also contributed to the growth of the CrowdLending (Business) market in the GCC. One notable trend is the increasing number of platforms that offer CrowdLending services. These platforms provide businesses with a wide range of options to choose from, allowing them to find the most suitable financing solution for their specific needs.

Additionally, the emergence of peer-to-peer lending platforms has further fueled the growth of the market, as it allows businesses to directly connect with individual lenders. Local special circumstances have also played a role in the development of the CrowdLending (Business) market in the GCC. The region has a large number of small and medium-sized enterprises (SMEs), which often face challenges in accessing traditional financing options.

CrowdLending provides these SMEs with an alternative source of funding, allowing them to grow and expand their operations. Furthermore, the GCC has a young and tech-savvy population, which is more open to using digital platforms for financial transactions. This has created a favorable environment for the growth of the CrowdLending market.

Underlying macroeconomic factors have also contributed to the development of the CrowdLending (Business) market in the GCC. The region has witnessed strong economic growth in recent years, driven by factors such as high oil prices, government investments, and diversification efforts. This has created a favorable business environment, with increasing demand for financing options.

Additionally, the low interest rate environment in the GCC has made CrowdLending an attractive option for businesses, as it offers competitive interest rates compared to traditional bank loans. In conclusion, the CrowdLending (Business) market in the GCC is experiencing significant growth, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The rise of digitalization, the increasing number of platforms, the presence of a large number of SMEs, and the favorable macroeconomic environment have all contributed to the development of the market.

As the GCC continues to diversify its economy and embrace technology, the CrowdLending (Business) market is expected to further expand in the coming years.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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.