The UAE government has legalised the use of crowdfunding to provide funding options for small firms & widen the country’s liquidity pool. Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said that the Cabinet has authorised crowdfunding activities in both the public and private sectors.
كما اعتمدنا في مجلس الوزراء اليوم إجازة ممارسة نشاط التمويل الجماعي Crowd funding وبأن يكون له مشغلين من القطاع الحكومي والخاص .. التمويل الجماعي من أفضل الوسائل لدعم تمويل الأفكار الابتكارية التجارية الجديدة .. وسيفتح باباً للشباب ورواد الأعمال في تمويل أفكارهم .. pic.twitter.com/7PEfmozn0z
— HH Sheikh Mohammed (@HHShkMohd) March 21, 2022
Crowdfunding, a sort of alternative financing, is the process of supporting a project or endeavour by obtaining small sums of funds from a large number of individuals, typically over the internet.
“Crowdfunding is one of the best means to support the financing of new innovative business ideas … it will open a door for young people and entrepreneurs to finance their ideas,” he said on Twitter.
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