Money and business

What is crowdfunding

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Crowdfunding occurs when a large group of people donate small amounts to finance a project through authorized electronic platforms.

Instead of start-up entrepreneurs resort to traditional methods such as banks or government grants and subsidies. All they need is to present their idea in an attractive and convincing way on one of the platforms to raise the necessary capital to start your project.

The main pillar of the idea of crowdfunding :

A large number of financiers.
Small donations.
Crowdfunding platforms.
The field of crowdfunding has achieved rapid growth in recent years, in 2014 the volume of global financing reached 16.2 billion dollars, and this figure is expected to increase to 96 billion dollars by 2025.
This is a strong proof of the interest of investors and entrepreneurs in crowdfunding platforms, as it benefits both parties.

This is how most crowdfunding platforms work:

You need to start a fundraising campaign on the crowdfunding platform by providing your details and choosing the cause for which you want to raise funds.
And then crowdfunding platforms organize the fundraising process , they create a web link for your fundraising that can be shared on many social media platforms, via text messages, emails and other messaging applications.
Donors then visit your fundraising event and donate to your cause, if they find it real and attractive enough.
After the fundraising campaign is over, you can cash out the amount collected by the fundraiser on the crowdfunding platform.
Read also: the best cryptocurrency trading platforms in Saudi Arabia 2023

What is crowdfunding

The best Arab crowdfunding platforms
In the following paragraphs, we explain to you the most important Arab crowdfunding platforms that provide access to all types of financing . Which contributed to the realization of the dreams of many Arab youth by supporting their creative ideas.

The platform can

It is considered one of the most important and famous Arab crowdfunding platforms, founded in Cairo in 2012 in order to provide financial and advisory support to young Egyptians and owners of ideas.

It’s not just about financing small projects and supporting startups. The site even allows you to pose a specific problem, such as developing a product or improving a product line. With the demand of the internet audience to participate in the search for innovative solutions.

Over the years, thanks to the efforts of the team and the support of the community, the Can platform has expanded. It currently has an office in Tunisia and is active in four other countries.

The platform offers two main services:

Crowdfunding: you just have to add your idea and a team member will contact you to start the funding campaign.
In case you are looking for a solution to a digital or environmental industrial problem: all you have to do is submit your challenges on the platform to link them with innovative solutions thanks to the multiplicity of innovators and specialists present on the platform.
The Dubai next platform is considered the best Arab crowdfunding platform and is a licensed government platform emerging in the United Arab Emirates.

It was established in May 2021 and is affiliated to the Mohammed bin Rashid Establishment for the development of small and medium enterprises.

It supports creative and ambitious young people of different nationalities in Dubai and in its first year managed to finance 17 projects for young entrepreneurs.

How the DubaiNext platform works:

The DubaiNext platform adopts an “all or nothing” model to finance the project. Where the owner of the idea gets the money if the required amount is reached within the specified time period. But if this is not achieved, the payers of the financing receive their money .

The platform allows everyone, whether individuals or companies of different nationalities (as long as they are residents of Dubai) and even students to present their projects and ideas in various fields.

All you have to do is create an account on the platform that includes your data and information about the project . Then record an introductory video and share it.

If all the conditions are met, the platform will show your project to the public to start the fundraising process.

The role of the platform does not end at this stage only, but through its qualified team it provides training courses and educational conferences.

Besides the possibility of issuing a work license and many other services.

Beehive platform:

A Dubai-based crowdfunding platform and the first fintech platform licensed to engage in peer-to-peer (p2p) lending activities in the MENA region .

This platform has managed to finance projects worth AED 1,200 million since its inception in 2014.

The digital platform :

It is an Arab crowdfunding platform and is considered the best Arab crowdfunding platforms based on Finance established in the kingdom of Saudi Arabia. It connects SMEs seeking financing directly with financiers in exchange for economic returns.

Who can apply on a digital platform: the applicant must be the owner of a Saudi company recognized by the Ministry of Commerce.

The duration of the study of the funding application is 3 days by a specialized team appointed by the platform . If the application is accepted, it will be displayed on the platform to start the financing process.

The most important and Best Arab crowdfunding platforms

Dhumal platform:

It is built on the bonus system that we talked about earlier.
Zumal is distinguished by the fact that it does not set a specific funding ceiling for any project. Instead, it leaves the public and potential investors free to choose which project they wish to support.

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