Dubai Next Crowdfunding Platform Eyes Expansion After Enabling Eight Startups to Raise Required Funds
Dubai Next – the digital crowdfunding platform launched in May 2021 by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai and the Chairman of the Dubai Executive Council – has attracted a number of innovators and has already enabled eight startup concepts to raise the required funds.
The crowdfunding platform is now anticipating an increase in fund-seekers and contributors following the UAE’s approval of a federal system for such platforms.
The CEO of Dubai SME, Abdul Baset Al Janahi, said: “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”
Sheikh Mohammed bin Rashid Al Maktoum, the Vice President, Prime Minister, and Ruler of Dubai, recently announced a new federal framework that will allow operators from the government and private sectors to back crowdfunded projects.
Following the announcement of the framework, Dubai Next – which is managed by the Dubai SME, an agency of the Department of Economy and Tourism (DET) in Dubai – is looking to increase the number of contributors, which is currently at 398, and the number of approved and running campaigns, which is at 62.
The total number of campaigns registered to date is 1,570. Between the first three months and April 2022, the campaigns have increased by 50 percent, while contributors have increased by 60 percent, the state-run news agency, Wam, confirmed.
Crowdfunding involves small amounts sourced towards financing a single commercial venture.
Anyone with an innovative idea or project can create a campaign on Dubai Next and seek funds from contributors. The not-for-profit platform is open to people of all nationalities.
Al Janahi added: “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 is 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.”
The deputy CEO of Dubai SME, Saeed Matar Al Marri, said: “Crowdfunding provides access to funding for a large segment of the society, particularly the younger generation, and facilitates financing amongst entrepreneurs and their family as well as friends and the wider community.
“Ideas submitted on Dubai Next go through a viability testing before it moves to the funding stage, thus minimizing future risks. Campaign owners are also supported by Dubai SME in marketing their idea among the target contributor groups.”