Digital Capital Raising - GCC

  • GCC
  • The Digital Capital Raising market market in the GCC country is forecasted to reach a total transaction value of US$185.5m in 2024.
  • MarketCrowdlending (Business) leads the market with a projected total transaction value of US$114.8m in 2024.
  • When compared globally, the United States achieves the highest cumulated transaction value of US$35,370m in 2024.
  • In the GCC, the trend of utilizing blockchain technology for digital capital raising is gaining traction among tech-savvy investors and startups.

Key regions: Brazil, Germany, United States, United Kingdom, China

 
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Analyst Opinion

The Digital Capital Raising market in GCC is experiencing significant growth and development.

Customer preferences:
Customers in the GCC region are increasingly turning to digital platforms for capital raising activities. This shift in preference can be attributed to several factors. Firstly, digital platforms offer convenience and accessibility, allowing customers to access capital raising opportunities from the comfort of their own homes or offices. Secondly, digital platforms provide a wider range of options, allowing customers to choose from a variety of investment opportunities. Finally, digital platforms often offer lower fees and costs compared to traditional capital raising methods, making them an attractive option for cost-conscious customers.

Trends in the market:
One of the key trends in the Digital Capital Raising market in GCC is the rise of crowdfunding platforms. These platforms allow individuals and businesses to raise capital from a large number of investors, often through small individual contributions. Crowdfunding has gained popularity in the region due to its ability to democratize access to capital and provide opportunities for small businesses and startups to secure funding. Additionally, crowdfunding platforms often provide a social element, allowing investors to connect with and support projects that align with their values or interests. Another trend in the market is the increasing adoption of blockchain technology. Blockchain, a decentralized digital ledger, has the potential to revolutionize capital raising by providing transparency, security, and efficiency. In the GCC region, blockchain technology is being used to facilitate initial coin offerings (ICOs) and token sales, allowing businesses to raise capital by issuing digital tokens. This trend is driven by the region's growing interest in cryptocurrencies and blockchain technology, as well as the desire to attract international investors.

Local special circumstances:
The Digital Capital Raising market in the GCC region is influenced by several local special circumstances. Firstly, the region has a high level of wealth, with many individuals and institutions looking for investment opportunities. This creates a favorable environment for capital raising activities. Additionally, the GCC region has a young and tech-savvy population, who are comfortable with digital platforms and open to new investment opportunities. This demographic factor contributes to the growth of the Digital Capital Raising market in the region.

Underlying macroeconomic factors:
The development of the Digital Capital Raising market in the GCC region is also influenced by underlying macroeconomic factors. The region is experiencing economic diversification, with governments and businesses looking for new sources of funding to support non-oil sectors. Digital capital raising provides an alternative to traditional sources of funding, allowing businesses to access capital quickly and efficiently. Furthermore, the region's governments are actively supporting the development of digital infrastructure and technology, creating an enabling environment for digital capital raising activities. In conclusion, the Digital Capital Raising market in the GCC region is growing and evolving due to customer preferences for convenience and accessibility, the rise of crowdfunding platforms, the adoption of blockchain technology, local special circumstances such as high levels of wealth and a young population, and underlying macroeconomic factors such as economic diversification and government support for digital infrastructure. These factors are driving the development of the Digital Capital Raising market in the GCC region and are likely to continue shaping its future growth.

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.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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