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29/06/2016 - 18:24hs
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Arabs raise over USD 20 million through crowdfunding

Such was the amount collected by 17 collective financing companies from 2012 through April 2016, according to a survey. Regulatory issues pose a challenge.



São Paulo – The Arab Advisors Group, a market research company based in Jordan, carried out a study with 17 crowdfunding companies in the Middle East and North Africa (MENA) and concluded that they raised over USD 20 million between themselves from 2012 through April 2016. The survey was released this Wednesday (29) by the consulting company, which specializes in technology and telecommunications.

It classified crowdfunding initiatives into five categories: reward-based crowdfunding, donation-based crowdfunding, equity crowdfunding, real estate crowdfunding and peer-to-peer (P2P) lending.

Since 2012, 255 reward-based crowdfunding campaigns were carried out online in the MENA region, with donations averaging USD 175.

“Our interviews with crowdfunding executives have revealed that dealing with regulation is one of the biggest challenges faced by crowdfunding companies throughout the region,” a press release quoted Arab Advisors Group research analyst Malik Malik as saying.

He added that the lack of regulation in the region means that pioneers in this space have to be constantly in conversation with regulatory bodies to not only ensure that their businesses can operate without friction from the government, but to help shape crowdfunding-related laws going forward.

In Brazil, a few Syrian refugees are resorting to crowdfunding websites in order to raise funds and start their own businesses.

*Translated by Gabriel Pomerancblum

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