Capital Raising - United Arab Emirates

United Arab Emirates

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The total capital raised in the Capital Raising market market in the United Arab Emirates is expected to reach US$760.65m in 2025.
Traditional Capital Raising holds the dominant position in the market, with a projected market volume of US$696.08m in 2025.
When compared globally, the United States is anticipated to generate the most capital raised, with US$205.4bn in 2025.
In the United Arab Emirates, the Capital Raising market is seeing a surge in demand for Sharia-compliant financing options among local and international investors.

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United States,
China,
India,
Israel,
Europe

Capital Raised

Capital Raised Change

NOTES: Data shown is using current exchange rates. Data shown reflects market impacts of Russia-Ukraine war and the bankruptcy of the Silicon Valley Bank.

MOST_RECENT_UPDATE: Mar 2024

SOURCE: Statista Market Insights

Capital Raised

Capital Raised Change

NOTES: Data was converted from local currencies using average exchange rates of the respective year.

MOST_RECENT_UPDATE: Oct 2024

SOURCE: Statista Market Insights

Analyst Opinion

The Capital Raising Market in the United Arab Emirates is facing considerable decline, influenced by factors such as fluctuating investor confidence, regulatory challenges, and a shift towards digital platforms that are reshaping traditional fundraising methods.

Customer preferences: Investors in the United Arab Emirates are increasingly gravitating towards sustainable and socially responsible investment opportunities, reflecting a growing awareness of environmental and social governance (ESG) factors. This trend is influenced by younger demographics who prioritize ethical considerations alongside financial returns. Additionally, the rise of fintech solutions is reshaping investment preferences, with many opting for digital platforms that offer transparency and ease of access, catering to a tech-savvy population eager for innovative fundraising methods.

Trends in the market: In the United Arab Emirates, the Capital Raising Market is experiencing a notable shift towards sustainable financing, as investors increasingly seek opportunities that align with environmental and social governance (ESG) principles. This trend is particularly pronounced among younger investors, who prioritize ethical investments alongside traditional financial returns. Furthermore, the emergence of fintech platforms is transforming the capital-raising landscape, enabling startups and businesses to access funding more efficiently. This evolution not only enhances transparency but also fosters innovation, compelling industry stakeholders to adapt their strategies to meet the demands of a socially conscious and tech-savvy investor base.

Local special circumstances: In the United Arab Emirates, the Capital Raising Market is shaped by its strategic geographical position as a global business hub and its diverse, multicultural population. The country's regulatory framework encourages foreign investment and innovation, with free zones offering incentives for startups. Additionally, the UAE's commitment to sustainability, highlighted by initiatives like the UAE Vision 2021, drives demand for green financing. These unique local factors foster a dynamic environment where traditional financing methods are increasingly complemented by digital solutions, aligning with the growing emphasis on ESG principles among investors.

Underlying macroeconomic factors: The Capital Raising Market in the United Arab Emirates is significantly influenced by macroeconomic factors such as global economic trends, national economic health, and fiscal policies. The UAE's robust GDP growth, supported by diversification efforts away from oil dependency, enhances investor confidence and attracts foreign direct investment. Favorable fiscal policies, including tax incentives for startups and innovation, further stimulate market activity. Additionally, global shifts towards sustainable investing and ESG compliance are prompting local firms to adapt, fostering a competitive environment that encourages innovative financing solutions. These elements collectively enhance the capital raising landscape, positioning the UAE as a leading financial hub.

Methodology

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.

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Venture capital worldwide - statistics & facts

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