Dubai on Tuesday introduced regulations for crowdfunding, the first of their kind in a Gulf Cooperation Council member country, aimed at helping small businesses and start-ups to get access to alternative forms of funding.

Regulators in the United States and Britain are among those countries that have introduced rules for crowdfunding, which is becoming an increasingly important source of cash for small and medium-sized enterprises.

The Dubai Financial Services Authority regulations establish a framework for loan and investment crowdfunding, providing governance for fintech businesses and protection for their customers, the regulator said in a statement.

SMEs make up around 85 per cent of businesses in the UAE, contributing more than half of the country’s GDP and employing more than half of the UAE workforce.