Crowdfunding is a platform that enables financing applicants to obtain funds from investors for their projects through the platform, in exchange for shares in the capital of a company that will either be established or has been established to execute the project. Typically, crowdfunding consists of three parties. They are:
Common types of crowdfunding include:
Examples of crowdfunding platforms in the UAE are:
Useful links:
In the UAE, fundraising activities for charities and social causes are regulated and done through state-based registered channels. However, fundraising for loans and investments, or debt-based funding is a new concept which is currently applied on a narrow basis and yet to be regulated and introduced at a wider level. In the UAE, the following entities regulate financial services or activities:
These are some of the regulations that govern crowdfunding in the UAE:
Recently, Dubai Financial Services Authority (DFSA) launched a regulatory framework for loan and investment-based crowdfunding platforms, which is considered the first framework in GCC. The introduction of the regulation intends to license, organise and protect the rights and obligations of all parties involved in specific crowdfunding activities which provide finance solutions for small and medium-sized enterprises (SMEs) in the UAE.
The regime forms part of DFSA’s regulatory roadmap to create an innovation-friendly ecosystem, in line with the UAE Government’s National Innovation Strategy. DFSA crowdfunding regulations intend to accelerate growth in the financial technology (FinTech) industry in the UAE and the region by targeting the specific requirements of crowdfunding platforms. The regulations ensure clear governance for FinTech businesses and provide appropriate protection for their customers. They also formalise DFSA’s approach to regulating crowdfunding platforms which had operated through interim arrangements since 2016.
DubaiNEXT is a digital crowdfunding platform from Dubai Government. It was launched to facilitate Dubai-based individuals and companies who have creative projects to start a campaign through the platform and ask the UAE’s community to fund their business idea and turn it into a venture.
DubaiNEXT is based on the ‘All-or-Nothing’ model, where a campaigner sets a fundraising goal, but keeps nothing unless the goal is achieved. After the campaigner meets his funding goal, the amount will be released to him through Dubai SME. If the campaign does not reach the funded goal, the contributed amount will be refunded to the contributors.
The campaigner will get to keep full ownership of his project. Contributors can choose from a variety of unique rewards offered by the campaign owner.
The ‘Dubai Next’ platform aims to encourage youth and start-ups to obtain community support through crowdfunding. It envisions to empower a generation that is capable of innovating to succeed in a competitive commercial environment, thus reinforcing the fundamental role of SMEs in economic development.
Read FAQs relating to starting a campaign and contributing to a project.
04 Aug 2025
