The resource directly connects with investors the enterprises that need investments; • Eureeca is the first global platform to share crowdfunding. Peer-to-peer (P2P) lending aka crowdfunding platforms are proving to be good alternatives to typical bank funding in the Middle East region. ... (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. Moreover, crowdfunding in the UAE is developing much faster than in other countries of the world. Crowdfunding – Advantages and Disadvantages Once the investors decide the crowdfunding type, he can verify and select amongst the several crowdfunding platforms available. 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. Crowdfunding platforms in the UAE help connect business with investors. SMEs contribute nearly 60% of the UAE’s GDP and estimated to grow to 70% by 2021 The thriving entrepreneurial ecosystem in the UAE has been accompanied by a rise in the number of angel investors. 5- Transparent Hands – Online Donation Platforms in UAE Transparent Hands is the largest technological platform for crowdfunding in the healthcare sector of Pakistan. It turned out that crowdfunding in Dubai, UAE is a viable source for financing various projects and startups at different stages. 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. Times Realty News. What Is Crowdfunding? the United Arab Emirates’ (the “UAE”) economy. 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. 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. 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. Car rental platforms like Evolve, provide the easiest way to find and rent a car in Dubai. The practice is even gaining prominence in the UAE since it has been deemed to be in accordance with sharia law. There are plenty of prospective startups and real estate projects which crowdfunding platforms can absolutely serve by providing various financing tools. 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. Click HERE to find out ⭐ PayBito Reports Record Participation in the UAE For Exchange Affiliate Program. FundedByMe, an equity crowdfunding platform, has recently launched operations at the DIFC after obtaining full equity crowdfunding license from the DFSA. The major hurdle facing crowdfunding platforms in the MENA region is awareness and acceptance as an alternative funding method. Currently, Eureeca is the only such platform in the UAE, which is regulated by the DFSA. Equity model/ crowd-sourced equity funding (CSEF): The investors receive shares in a company in exchange for the capital provided. 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. 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. 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 company; The crowdfunding company must be a company incorporated in UAE under the Companies Law (excluding the Joint Partnership and Simple Commandite companies). As the name suggests, Crowdfunding is raising small amounts of funds from multiple people to provide capital to a new business. 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