Executive Summary1. What is this report about? Crowdfunding platforms today render it possible for individuals and firms, of any size, to harness social networks for raising start-up capital for projects, which may otherwise fail due to funding deficits. Such an alternative financing mode has widely penetrated in the GCC region in both conventional and Shariah Compliant markets. UAE and Bahrain became the first two countries in the GCC for announcing formal legislation for crowdfunding sector in the region. The regulation is expected to help the crowdfunding sector become formal by setting out operational guidelines and standard procedures. This is expected to give a big push to the crowd funding mode of finance in the wider MENA region. The report provides a detailed analysis of Crowdfunding market globally and regionally (GCC). 2. Who will benefit and why? The report will benefit a wide range of players in the crowdfunding market; investors, operators of crowd funding platforms, investees, regulators and government agencies. This report would help these entities to gain in-depth understanding about the crowdfunding platform. 3. How exhaustive is this report? We have provided an in depth analyses of the current status of the global crowdfunding market, the preferred sectors for funders and the different modes. We have discussed the economics of crowdfunding platforms in lines of its response to incentives, disincentives and transaction costs. Analysis is done on the market structure of the GCC on how growing entrepreneurship, startups would soon require new financing cycle and crowdfunding might act as a new financier, emphasis is also laid on the FinTech potential in the region. Finally, policy recommendations on framing potential crowdfunding regulations in the GCC countries have been specified.
Table of Content
- Executive Summary
- Evolution of Crowdfunding and its Variants
- Current Status of the Global Crowdfunding Market
- Economics of Crowdfunding
- Crowdfunding in the MENA region
- Some Platforms that Shaped the Crowdfunding Ecosystem in MENA
- Crowdfunding in the GCC
- Islamic Finance and Crowdfunding
- FinTech Potential in the Middle East
- Framing Crowdfunding Regulations: The Policy Approach
Key Questions Addressed in this report
- What is the current status of the global crowdfunding market?
- Which type of crowdfunding is dominating sectors like technology, education, e-commerce in the region?
- What are the challenges for crowdfunding in the GCC?
- How is the growth of FinTech Crowdfunding platforms?
- How regulation is likely to play an important role in the development of crowdfunding?