09/10/25
The UAE Cabinet has officially regulated crowdfunding activities, establishing a clear legal framework that opens new avenues for SMEs and investors.
📌 Key Facts: In March 2022, the UAE Cabinet approved crowdfunding activities for both public and private sectors. Platforms such as DubaiNEXT, Beehive, and Eureeca now operate under Cabinet Resolution No. 36 of 2022, regulated by the Securities and Commodities Authority (SCA). This resolution outlines the licensing requirements and operational conditions for crowdfunding platforms in the UAE.
📊 Analysis: The UAE’s approach to crowdfunding regulation combines oversight with innovation. Compared to the UK’s FCA-regulated crowdfunding platforms, the UAE framework offers a more flexible environment, encouraging the growth of SMEs and FinTech ventures. The introduction of DubaiNEXT as a government-backed platform further supports this initiative, providing a structured pathway for start-ups to access capital.
💼 Practical Impact: SMEs and start-ups now have a legal avenue to access capital from a broad investor base. Campaigners retain ownership, contributors receive rewards or equity depending on the model, and funds are only released upon achieving set targets. Platforms like DubaiNEXT illustrate the application, enabling young entrepreneurs to validate projects with community support.
✅ Conclusion: The UAE crowdfunding licence framework marks a significant step in formalising investment and fundraising activities. It balances innovation with legal certainty, empowering SMEs, investors, and FinTech firms alike. NUR Legal provides expert guidance on navigating licensing requirements, structuring campaigns, and ensuring full compliance with UAE regulations. Visit us at NUR-Legal.com or contact us directly at info@nur-legal.com
Emil Korpinen