Dubai Next, the digital crowdfunding platform, is expecting an increase in fund-seekers and contributors, following the recent approval of federal system for such platforms in the country.
The new federal framework that will allow operators from the government and private sectors to back crowdfunded projects, was launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of UAE and Ruler of Dubai.
Dubai Next was launched in May 2021 by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council. The platform, which is managed by Dubai SME, an agency of the Department of Economy and Tourism (DET) in Dubai, is attracting innovators and has already helped eight startup concepts raise the required funds.
Currently, Dubai Next has 398 contributors and 62 campaigns approved and running, while the total number of campaigns registered to date is 1,570. Between the first three months and now, the campaigns have increased by 50 percent, while contributors have increased by 60 percent.
“Crowdfunding has had a significant impact in ushering in a new generation of entrepreneurs in the UAE. It provides an alternate financing option, and an ideal opportunity to turn startup ideas into viable projects. Students aged 12 and above can create campaigns on Dubai Next and the campaigns seen so far are diverse and innovative. The Dubai Next experience confirms that crowdfunding can motivate our growing youth population to pursue entrepreneurship, thus ushering in a new generation of entrepreneurs and eventually positioning Dubai as the global hub of innovative enterprise.”
“With the federal legislation in place and the Securities and Commodities Authority (SCA) being responsible for regulating the activities of crowdfunding, the crowdfunding platforms will see increased transparency, competitiveness and demand from the growing community of local, regional and global innovators in the UAE. It will create a sustainable pipeline of creative startups in the UAE,” added Mr. Al Janahi.