Traditional Capital Raising - GCC

The country in Gulf Cooperation Council (GCC) is expected to see a Total Capital Raised in the Traditional Capital Raising market market reaching US$1.68bn by 2024.
Venture Capital is set to lead the market with a projected market volume of US$1.61bn in 2024.
The United States will top the global comparison, with the most Capital Raised expected to be generated amounting to US$159.0bn in 2024.
In the GCC, traditional capital raising methods like IPOs and private placements are gaining traction among local businesses seeking growth opportunities.

Definition:

The Traditional Capital Raising market relates to venture investment in startups and emerging companies that are not yet generating positive or significant revenue but have high growth potential. The capital is mostly raised from venture financial institutions, and minorly from banks.

Structure:

The market consists of two segments:
- The Venture Capital market refers to private equity funding that is offered to startups and emerging companies.
- The Venture Debt market refers to the combination between equity and debt financing, which is used to finance the early stage and growth stage capital-backed companies.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Although the Traditional Capital Raising market is highly competitive in investment opportunities due to the rapidly high growth rate of startups and emerging companies, it has become more popular for these businesses who cannot get traditional loans from banks, to develop and grow their businesses or projects.
Key players in this market are companies such as Sequoia Capital and Hercules Capital.

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Venture Capital
Venture Debt

Traditional bank loans
Digital capital raising

The Traditional Capital Raising market in GCC is experiencing significant development and growth. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors are all contributing to this positive trajectory.

Customer preferences in the GCC region have shifted towards traditional capital raising methods as investors seek stability and security. Traditional capital raising methods such as initial public offerings (IPOs) and debt issuance are seen as more reliable and less risky compared to other forms of fundraising. Investors in the GCC region value transparency and accountability, which traditional capital raising methods often provide.

This preference for traditional methods is driving the growth of the market. Trends in the market indicate a strong demand for capital raising activities in the GCC region. The region has witnessed an increase in IPO activity, with companies seeking to raise funds through public offerings.

This trend can be attributed to the growing number of successful IPOs in the region, which has generated investor confidence and interest. Additionally, the GCC region has seen a rise in debt issuance, as companies take advantage of low interest rates to raise funds. These trends demonstrate the attractiveness of the GCC market for traditional capital raising activities.

Local special circumstances in the GCC region further contribute to the development of the traditional capital raising market. The region is known for its strong economic growth and stable political environment, making it an attractive destination for investors. Additionally, the GCC countries have implemented regulatory reforms to enhance transparency and investor protection, further boosting investor confidence in the market.

These special circumstances create a conducive environment for traditional capital raising activities to thrive. Underlying macroeconomic factors also play a role in the growth of the traditional capital raising market in the GCC region. The region's economies are heavily dependent on oil revenues, and the recent recovery in oil prices has led to increased government spending and investment.

This has created opportunities for companies to raise capital through traditional methods to fund expansion and growth initiatives. Furthermore, the GCC region has a young and growing population, which presents a large consumer market and attracts foreign investors. These macroeconomic factors contribute to the overall positive outlook for the traditional capital raising market in the GCC.

In conclusion, the Traditional Capital Raising market in GCC is experiencing growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The shift towards traditional capital raising methods, the increase in IPO activity and debt issuance, the special circumstances in the GCC region, and the favorable macroeconomic factors all contribute to the positive trajectory 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.