The appearance of more and more startup companies on the Dubai market has determined the government to come up with solutions that help these businesses. While many public funding programs have been launched, there was also the need for these companies to obtain funds from other sources. The successful development of the fintech industry in Dubai has created a suitable environment for the development of crowdfunding, a concept that enables companies to gather funds from the public.
Foreign investors interested in starting a crowdfunding company in Dubai must know that the emirate now has its own regulations related to the establishment of this type of venture. Our Dubai company formation consultants can offer information on the legislation related to crowdfunding.
Requirements to open a crowdfunding business in Dubai
Foreign or local entrepreneurs can set up crowdfunding companies in Dubai or in one of the free zones, the most sought one being the Dubai International Financial Centre (DIFC) which is one of the most renowned financial centers in the Middle East. The company incorporation procedure is the same as for any other type of business in the financial industry, however, it must undergo authorization from the Dubai Central Bank, the Securities and Commodities Authorities in the emirate, or the DFSA in the DIFC Free Zone.
Our company registration agents in Dubai can handle the incorporation process of the crowdfunding company.
The crowdfunding sector in Dubai
Dubai is currently one of the most attractive emirates in the UAE and the number of young enterprisers setting up companies here has led to the creation of numerous crowdfunding platforms. Dubai companies are usually set up as equity or loan-based crowdfunding platforms. By the end of 2020, Dubai crowdfunding companies are expected to contribute significantly to the UAE economy and to grow as an industry by close to 30%. Local crowdfunding platforms have raised more than 20,000,000 USD for small and medium-sized enterprises (SMEs) in Dubai during the last several years.
For assistance in setting up a crowdfunding company in the UAE, do not hesitate to contact our company registration advisors in Dubai.