Crowdfunding Platforms in the UAE

Analysis

Crowdfunding has grown in both scope and popularity in recent years around the world and the UAE is no exception in this regard. However, unlike many other jurisdictions, there is no specific regime providing for or enabling crowdfunding in the UAE and platform operators must try and work within existing securities and financial regulations which are not necessarily conducive to modern crowdfunding models.

1. Introduction

Crowdfunding has been around for many years, arguably for centuries with one of its earliest uses in the production of books. In the modern era, however, it is ostensibly linked with information technology and online platforms starting in the late 90s and early 2000s in connection with arts and music communities.

Crowdfunding covers many types of activities including equity funding and debt funding, but also extends to the likes of litigation and donation based funding. Today, however, crowdfunding is most closely associated with the online offering of private company equity or debt investments and as such is subject to securities and financial regulation.

2. The rise of crowdfunding