Market Insights Financial Capital Raising Digital Capital Raising

CrowdLending (Business) - Western Asia

Western Asia

The country in focus, in Western Asia, is expected to see the total transaction value in the Crowdlending (Business) market market reach US$182.3m by 2024.
When looking at a global scale, it is evident that China leads with the highest transaction value, projected to hit US$15,970m in 2024.
In Western Asia, CrowdLending platforms are gaining traction as an alternative capital raising method for businesses amidst evolving regulatory frameworks.

Key regions: China, United Kingdom, Brazil, Israel, India

Market

Region

Region comparison

Currency

Analyst Opinion

The CrowdLending (Business) market in Western Asia has been experiencing significant growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Western Asia, businesses are increasingly turning to CrowdLending platforms as an alternative source of funding. This is due to the convenience and accessibility offered by these platforms, allowing businesses to easily connect with a large pool of potential lenders. Additionally, CrowdLending platforms often offer competitive interest rates and flexible repayment terms, making them an attractive option for businesses seeking capital.

Trends in the market: One of the key trends in the CrowdLending (Business) market in Western Asia is the rise of peer-to-peer lending platforms. These platforms connect individual lenders directly with businesses in need of funding, bypassing traditional financial intermediaries. This trend has gained traction due to the transparency and efficiency offered by peer-to-peer lending, as well as the potential for higher returns for lenders. Another trend in the market is the increasing use of technology and data analytics in the lending process. CrowdLending platforms in Western Asia are leveraging technology to streamline the loan application and approval process, making it faster and more efficient. Furthermore, data analytics are being used to assess the creditworthiness of businesses, allowing lenders to make more informed lending decisions.

Local special circumstances: The CrowdLending (Business) market in Western Asia is also influenced by local special circumstances. One such circumstance is the high level of entrepreneurship and small business activity in the region. Many businesses in Western Asia are startups or small and medium-sized enterprises (SMEs) that may face challenges in accessing traditional financing options. CrowdLending platforms provide an alternative avenue for these businesses to secure the funding they need to grow and expand.

Underlying macroeconomic factors: The development of the CrowdLending (Business) market in Western Asia is also influenced by underlying macroeconomic factors. For example, the region has seen rapid economic growth in recent years, creating a favorable environment for business expansion and investment. Additionally, low interest rates in many Western Asian countries have made borrowing more affordable, encouraging businesses to seek financing through CrowdLending platforms. In conclusion, the CrowdLending (Business) market in Western Asia is developing rapidly due to customer preferences for convenient and accessible funding options, market trends such as the rise of peer-to-peer lending and the use of technology, local special circumstances including a high level of entrepreneurship, and underlying macroeconomic factors such as economic growth and low interest rates. These factors are driving the growth of the CrowdLending (Business) market in Western Asia and are likely to continue shaping its development in the future.

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.