Capital Raising - GCC | Statista Market Forecast

The Capital Raising market market in the GCC is projected to reach a total capital raised of US$1.86bn in 2024.
Traditional Capital Raising is expected to dominate the market with a projected market volume of US$1.68bn in 2024.
In global comparison, the United States will generate the most capital raised, with US$195.4bn in 2024.
The GCC's Capital Raising market is witnessing a surge in demand for Islamic finance products to attract Sharia-compliant investors.

Definition:

The Capital Raising market refers to the process of raising additional capital to launch, finance, and grow a business or a project. Traditional Bank Loans are not considered in the market.

Structure:

The market consists of two segments:
- The Traditional Capital Raising market refers to traditional venture financial services for startups and emerging companies that do not yet possess a positive track record, but have exceptional growth potential.
- The Digital Capital Raising market refers to digital financial services for business customers and private borrowers.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Besides Traditional Bank Loans, there are various alternative forms of debt and equity financing that help businesses, especially startups and emerging companies who seek additional funds to support their business' operation and growth. Nowadays, owing to the rapid growth rate of startups and emerging companies, these financial services are more attractive and popular.
Key players in this market are companies such as Squoia Capital, Hercules Capital, and Indiegogo

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Venture Capital
Venture Debt
Digital Capital Raising

Traditional Bank Loans

The Capital Raising market in GCC has been experiencing significant growth in recent years.

Customer preferences: Investors in the GCC region have shown a strong preference for capital raising activities, as they seek to diversify their investment portfolios and take advantage of the potential returns offered by these opportunities. This is particularly true for high-net-worth individuals and institutional investors who are looking for alternative investment options beyond traditional asset classes such as stocks and bonds.

Trends in the market: One of the key trends in the Capital Raising market in GCC is the increasing popularity of private equity and venture capital investments. These types of investments allow investors to participate in the growth of promising startups and high-growth companies, which can offer attractive returns on investment. The GCC region has seen a surge in entrepreneurial activity in recent years, and this has created a favorable environment for capital raising activities. Another trend in the market is the rise of real estate investment trusts (REITs) as a popular capital raising vehicle. REITs allow investors to gain exposure to the real estate market without the need to directly own and manage properties. This has attracted a wide range of investors, including both retail and institutional investors, who are looking for stable income streams and potential capital appreciation.

Local special circumstances: The GCC region has a unique set of circumstances that have contributed to the growth of the Capital Raising market. One of the key factors is the abundance of natural resources, particularly oil and gas. This has created significant wealth in the region and has led to the establishment of sovereign wealth funds, which are actively involved in capital raising activities. These funds play a crucial role in providing capital to local businesses and supporting economic development initiatives. Furthermore, the GCC region has a young and growing population, which is driving demand for infrastructure development, housing, and consumer goods. This has created opportunities for capital raising activities in sectors such as real estate, construction, and retail. Additionally, the GCC governments have been implementing economic diversification strategies to reduce their reliance on oil revenues, which has further fueled the growth of the Capital Raising market.

Underlying macroeconomic factors: The Capital Raising market in the GCC is also influenced by a number of macroeconomic factors. One of the key drivers is the low interest rate environment, both globally and within the region. Low interest rates make it cheaper for companies to borrow money and incentivize investors to seek higher returns through capital raising activities. Additionally, the GCC region has a stable political and regulatory environment, which provides confidence to investors and encourages capital inflows. In conclusion, the Capital Raising market in GCC is experiencing strong growth due to customer preferences for alternative investment options, such as private equity and REITs. The region's unique circumstances, including its natural resources and young population, have created favorable conditions for capital raising activities. Furthermore, underlying macroeconomic factors, such as low interest rates and a stable political environment, have further supported the growth of the market.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

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 data from OECD, 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, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . 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.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.