Getting into UAE’s Real Estate Crowdfunding Space: Market, Trends, and Platforms. SMEs are significant contributors to the UAE economy which comprises around 85% of businesses in the UAE, contributes to nearly 60% to the UAE GDP, and employs 60-65% of the UAE workforce. By 2016, over 100 crowdfunding platforms spread across the globe were soliciting real estate investments for turnkey projects, off-plan properties, re-development of rundown establishments and acquisition of distressed mortgages. Traditionally, funds are raised from relatives, friends and venture capitalists. 5- Transparent Hands – Online Donation Platforms in UAE Transparent Hands is the largest technological platform for crowdfunding in the healthcare sector of Pakistan. Using social networks and the viral nature of online communication, individuals and companies have raised billions of dollars in debt, equity, and donations over the past decade. The thriving entrepreneurial ecosystem in the UAE has been accompanied by a rise in the number of angel investors. The DFSA said its crowdfunding regulations have the ability to catalyse growth in the fintech industry in the UAE and the region, by targeting the specific requirements of crowdfunding platforms. Crowdfunding is a way to raise money for an individual or organization by collecting donations through family, friends, friends of friends, strangers, businesses, and more. I would highly recommend them, they are a much needed resource in the UAE!” Peter Davos – Founder & CEO Hale Education "Since debt financing wasn’t easily available through the banks, we tried the 21st century method of crowdfunding and it went very, very well. Car rental platforms like Evolve, provide the easiest way to find and rent a car in Dubai. Crowdfunding platforms in Dubai, UAE. Nowadays Arab crowdfunding is supporting sectors where normal funding is scarce and where there is huge demand like for culture, innovation, community projects or … Once the investors decide the crowdfunding type, he can verify and select amongst the several crowdfunding platforms available. Crowdfunding is a useful source of finance for early-stage companies, but its development in the region has been relatively limited so far. Times Realty News. During the fifth Middle East Banking Forum hosted by the UAE Banks Federation held in November 2017, the Central Bank governor had indicated the Central Bank's intention to regulate crowdfunding platforms in the emirates as part of measures … What Is Crowdfunding? In addition, UAE start-ups may also access funding through regulated equity crowdfunding platforms. It turned out that crowdfunding in Dubai, UAE is a viable source for financing various projects and startups at different stages. Angel Investors. The main crowdfunding platforms in the UAE are: • Beehive is the first online trading platform for financing and lending created in the UAE. As the name suggests, Crowdfunding is raising small amounts of funds from multiple people to provide capital to a new business. Crowdfunding company; The crowdfunding company must be a company incorporated in UAE under the Companies Law (excluding the Joint Partnership and Simple Commandite companies). FundedByMe, an equity crowdfunding platform, has recently launched operations at the DIFC after obtaining full equity crowdfunding license from the DFSA. Click HERE to find out ⭐ PayBito Reports Record Participation in the UAE For Exchange Affiliate Program. The major hurdle facing crowdfunding platforms in the MENA region is awareness and acceptance as an alternative funding method. UAE Central Bank seeks feedback on crowdfunding platform regulations Applicants wishing to undertake loan-based CFP activity must apply to the Central Bank for a licence. All you need to know about the sector and players. Through loan-based crowdfunding platforms, people and businesses can obtain access to finance from alternative lenders, including on a peer-to-peer basis. Whistleblowing Whistleblowing plays a critical role in keeping our Institution honest, efficient and responsible. There are plenty of prospective startups and real estate projects which crowdfunding platforms can absolutely serve by providing various financing tools. Evolve is an online car hire booking platform with a budget-friendly price for car rental in the UAE.. A car rental, short-term hire car, or short-term car hire service is a business which normally rents cars for short periods of time, usually from several days to a couple of weeks. ... (VC) funding and angel funding are other options for SMEs, tapping a wider investor base through crowdfunding platforms is proving to be an attractive option for both entrepreneurs and investors in managing risks and costs. Comparing the Top Online Fundraising and Crowdfunding Platforms. Our peer to peer lending platform provides economic returns to the crowd funder through returns on the … Crowdfunding investment options in the UAE. Crowdfunding – Advantages and Disadvantages UAE based Buckscapital is an example of this type of crowdfunding. In addition to the perceptions of risk for innovators, creators, and tech startups to bridge their funding gap as an alternative to traditional funding. Peer-to-Peer financing is one form of crowdfunding service which Beehive provides. However, do keep in mind that crowdfunding something so important is not always all that it is cracked up to be. In debt-based crowdfunding, the entity raising the funds pays back the funds along with some coupon rate/ interest rate pre-agreed between the parties instead of parting with equity/reward. The resource directly connects with investors the enterprises that need investments; • Eureeca is the first global platform to share crowdfunding. Most donation crowdfunding platforms also support rewards crowdfunding. (More on this towards the bottom of this article.) Through the Regulations, the UAE is the first GCC country to undertake the initiative of regulating crowdfunding ... both types of crowdfunding platforms, there are certain specific provisions, which apply to only one type of crowdfunding platform. Crowdfunding is a collective effort of individuals who pool their resources to support initiatives promoted by other people or organizations. UAE Central Bank (CBUAE) has launched a new Regulation of new activity on "Loan Based Crowdfunding” in mainland UAE, rules for issuing Crowdfunding Licenses… +91 -9840708181 Whatsapp The expansive jurisdiction of the Regulation will need to be considered by platforms located outside the UAE, including potentially those based in the DIFC and ADGM. This is why in recent years, UAE has witnessed the rapid growth of crowdfunding platforms based in or focusing on UAE and other GCC countries. Like any other nation, crowdfunding started trending all over UAE. FundedByMe UAE's operations is targetted to go live in Q2 of 2019. In this complex environment, several Arab crowdfunding platforms have been set up in the last years. the United Arab Emirates’ (the “UAE”) economy. Crowdfunding set to revolutionise fund-raising for SMEs in UAE. Crowdfunding platforms in the UAE help connect business with investors. Loan-based crowdfunding in the UAE is set to be subjected to stricter controls with the introduction of a new regime for the licensing and regulation of crowdfunding platforms. Moreover, crowdfunding in the UAE is developing much faster than in other countries of the world. SMEs contribute nearly 60% of the UAE’s GDP and estimated to grow to 70% by 2021 Peer-to-peer (P2P) lending aka crowdfunding platforms are proving to be good alternatives to typical bank funding in the Middle East region. ... Saudi Arabia, and the UAE. Equity model/ crowd-sourced equity funding (CSEF): The investors receive shares in a company in exchange for the capital provided. | Crowdfund Insider: Global Fintech News, including Crowdfunding… If you’re looking to build a crowdfunding platform in Saudi Arabia, UAE, or elsewhere in the MENA region, reach out to LenderKit to discuss your project. Beehive is an example of a debt-based regulated crowdfunding platform in the UAE. The practice is even gaining prominence in the UAE since it has been deemed to be in accordance with sharia law. Currently, Eureeca is the only such platform in the UAE, which is regulated by the DFSA.