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How to raise capital in UAE

We'll cover all you need to know in this guide to help you start looking for investment for your company in the United Arab Emirates. You may use this as a fast reference to locate various funding options, information to share with potential partners, and resources and programs that can promote the growth of your company.


Why networking is important


No matter where you are or what your firm does, we wanted to clarify the most crucial component of acquiring cash before moving on. In nearly any industry, building a strong network will increase your chances of success. It is its own form of currency.

Being in contact with potential investors is really beneficial for you and your business, especially if they have information and talents that you don't. Nowadays, there is no justification for not networking because quick connections offered by websites like LinkedIn make it so much simpler. You are investing in the future of your project when you are networking.


Why it is important to be prepared


No matter what kind of investment you're searching for, everyone you speak with are expecting very detailed information about your business. It's crucial to master and your business plan as well as your strategy, a pitch deck and and the equity your are looking for.

Investors will always ask for details about your company and the amount of funding you need. Any professional discussion will be much quicker to complete and less likely to include errors if you have all of these element prepared.


Bank financing


Let's start with a frequently disregarded method of obtaining capital: getting a loan. This is frequently disregarded since SMEs have to overcome significant obstacles before they can convince banks that they are a real company and will be able to repay the money they borrow. Due to the lack of financial data outside of estimates, this is often challenging early on in a corporation. In order to attract new clients, banks frequently compete with one another to provide the lowest interest rate. If none of the other choices on our list appear to be viable, you might be able to exploit this to your advantage.


Crowdfunding


If you aren't seeking for a sizable investment, crowdfunding is now an excellent approach to generate money. Its popularity has exploded over the past five years. There are several online venues, like Kickstarter, where people and organizations may showcase their ideas and get financial support from various, sometimes anonymous, donors.

Crowdfunding offers a special channel where groups of individuals who are enthusiastic about particular projects and may support your project ideas if your product or service has a viable niche.


Venture Capital


They are firms that invest in other businesses. This approach to fundraising involves giving your business money in exchange for a certain percentage of equity that the venture capital firm will later possess. You might need to explore beyond your local network because private equity is restricted in the UAE, and most VCs are located overseas.

Later on, you may be able to purchase that equity stake back, or the VC firm may try to sell it on its terms, depending on the sort of agreement you have. VC is based on speculation and frequently gives more attention to a company's financial health than to the potential quality of its goods or services.


Business Angels


Business angels are listed last on our list. There are individual who are investing their own money in your business and mostly in exchange for shares. They

In order to connect with investors who are more likely to be interested in what you're doing, there are a variety of angel investment networks that you may use, such as Emirates Angels.


Support from the UAE


Because the UAE is a worldwide center for new businesses, there are several government funding as well as advice and support accessible for business owners. 

Of course, raising capital is much more than what is covered in this article. It takes a lot of effort to access we have discussed, but first you need to have the fundamentals in order, get all of your company information available, and begin networking.


The greatest time to start is right now, and if you do, you'll be joining a lot of other excellent individuals and companies. In fact, SMEs make up more than 94% of all businesses in the UAE, proving that it's a great area to start a business.


You can get in touch with one of our team to have additional advices on how to raise capital in UAE.

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