𝗗𝗙𝗦𝗔'𝘀 𝗡𝗲𝘄 𝗖𝗿𝗼𝘄𝗱𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝗥𝘂𝗹𝗲𝘀: 𝗚𝗿𝗲𝗮𝘁𝗲𝗿 𝗙𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗣𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗦𝗠𝗘𝘀

Following its public consultation and feedback from the Call for Evidence, the Dubai Financial Services Authority (DFSA) has announced updates to its crowdfunding regime.

The revised crowdfunding regime offers greater clarity and flexibility while ensuring investor protection. Key updates to the DFSA crowdfunding rules include:

•⁠ ⁠𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱 𝗗𝗲𝗮𝗹 𝗖𝗮𝗽: Crowdfunding platforms can now offer deals up to a limit of USD 10 million per deal.
•⁠ ⁠𝗥𝗲𝘁𝗮𝗶𝗹 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗟𝗶𝗺𝗶𝘁: Retail investors can invest up to USD 100,000 per year on crowdfunding platforms, subject to deal-specific limits based on the offer type.
•⁠ ⁠𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗖𝗿𝗼𝘄𝗱𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗺𝗲𝗻𝘁𝘀: The updated rules clarify the types of properties eligible for listing on crowdfunding platforms and require additional data in property valuation reports.

The updated framework supports small and medium enterprises (SMEs) by providing an alternative financing route for business growth and asset acquisition, including property.

The Dubai Financial Services Authority (DFSA)’s new regulations address these challenges by providing clear governance for fintech businesses and formalizing the approach to regulating crowdfunding platforms. This initiative is expected to enhance the contribution and performance of the SME sector, providing much-needed access to financing.

The DFSA’s regulatory roadmap is designed to support the growth of crowdfunding and other fintech innovations, contributing to a more dynamic and efficient financial ecosystem in the UAE.